I agree most start ups do not hit forecasts, but when they are out to the degree that some are it raises a couple of questions. first does the management actually have any idea of running a start up and more importantly how their market works and / or secondly were they just trying to "con" investors into believing that they were worth 2 or 3 times what they were actually worth.
I am sorry but Equity Crowd Funding is raising money from mum and dad investors and in NZ courtesy of the various platforms a lot of investors have been taken for a ride. Some like Hydroworks and Balex are total losses, others like Crop Logics and Invert robotices they have probably paid twice to three times what a professional investor would have.
Personally I like to back companies where the management at least own up to missing targets etc and not simply adjust those targets and then say "we excceeded them or we got close".
This equaly applies to listed early stage companies - but at least the investor market deals to them with singificant declines in the share prices.
I am glad that the ECF investors are happy that they over paid for their shares based on what you seem to be implying was a set of numbers simply created to pump the price to those loyal shareholders.
the sooner the FMA in NZ starts to ask / review the ECF hype and over sell the better in my mind.
As for growing from $Growing from $20k of revenues to $400k of revenues over two years for a start up is not that impressive......when the management were talking much larger numbers ---- it is a fail.
Have a look at the Deloitte Fast 50 you will find lots of comapnies growing at those rates and higher over a longer timeframe and off a much larger base.
I hope they are successful, but also would hope that they either become a lot more realistic about forecasts and the market potential, or stop rasing money from the non professional market.
PVL Price at posting:
32.0¢ Sentiment: Sell Disclosure: Not Held
