Crowdcube need revenues of over £6m just to cover their costs.
Crowdcube's last accounts, showed they are now spending over £6m a year on administration.
So if they are charging on average 8% per successful pitch (a figure which probably optimistic), this means they have to see around £75m of pitches funded through their site before they get close to making any money.
Just as a snapshot, the site today has an estimated £3.76m of successful pitches sitting on it - ones that are over funding and ones looking likely to succeed. Annualised, this would return revenues of just £3.6m. Way short of the required number.
You have to ask, how is it ever going to make a profit?
Only if they drop the quality of their pitches drastically and focus on short term profits by pushing through poor businesses whilst building a database of retail investors.. oh.. wait...
ReplyDeleteRob, you commented on Droplet pitch on crowcube several months ago. it's now published on syndicateroom. how did you find the different between the 2 pitchs?
ReplyDelete