BABB on CrowdCube


(Andrew Clark) #1

As this has turned partly into a fintech investment chat… What do you make of BABB on Crowdcube? Blockchain banking is clearly the right niche to be in but that valuation seems extreme. As mentioned previously, I don’t want to miss out on the Fintech train but this one looks a bit rich for me…


Crowdcube gone mad?
Crowdcube gone mad?
Best & Worst Investments :money_with_wings:
Cryptocurrencies (Poll & Discussion)
#2

My view, not to be confused with facts:

I cannot figure out how they’ve come to that valuation. Others are in the same boat, seems like the pitch manager is selectively answering questions. They have very little at the moment, the token anyone can create, Google it, you can make a BAXX token :joy: Plus the token tech will pose problems. Bandwagons are cool :pensive: Questionable future partners as well.

Like I said all my opinion, no facts :wink:


#3

Valuation looks eyepopping, the story seems a bit hard to follow and like they are saying they will do everything. The crypto part confuses me.


#4

imo not sure they understand it either.


(Dave Smith) #5

Only just looked at Babb, the valuation is ludicrous. That looks like a potential future worst investment for someone :smiley:

Disclaimer: never listen to me I don’t know what i’m doing


(Vladislav Kozub) #6

Have come across this “interesting” opportunity recently.

Pre-money valuation of £100m, aim to collect £1.5m offering 1.48% equity and yet all they have done is applied for a banking license in 3 countries. Seems like the entire USP goes around using blockchain technology but is it really worth that much? What are these guys hoping to achieve? And how did CC let them out with such ludicrous valuation :thinking:


(Aris David) #7

It looks like a failed ICO since the ICO mania is over for now. Now they are fund raising through Crowdcube. Wouldn’t touch it with a 10 foot pole.


(Tommy Lowe) #8

Awaiting access to biz plan…


#9

Crowdcube need to shut this one down already, it might wind up hurting their brand and crowdfunding as a whole.

They keep saying they are using DCF ( discounted cash flow ) and refer to their business plan but there’s not enough details to model this, people have tried in the discussions.

The blockchain thing probably won’t work here and it’ll delay getting a license as the regulators will need to scrutinise yet another thing. Worryingly one of the response in their discussion was about SQL and the blockchain but it didn’t make sense to me, see: “competition already doing it like TransferWise”.


(Vladislav Kozub) #10

Interesting table here, they managed to get all the ticks including “Bank Licence” yet not having one in place (planning to obtain in 2019)…

Also quite optimistic growth with no losses from year 1, PAT growing 270% YoY for 5 years; PAT of £235m in 2023.

Ridiculous!


(Tommy Lowe) #11

Could they be implying their payments license is a ‘bank’ license? :face_with_raised_eyebrow:


(Vladislav Kozub) #12

That would certainly be misconstruing, because all those entities have a payment licence and only Monzo, Atom, Starling and N26 - banking licence.


#13

We discussed it a bit here Best & Worst Investments - the business plan document contains every fintech and crypto word ever, and they are going to do everything ever. No.


(Vladislav Kozub) #14

Oops, have absolutely no idea how on earth I could have missed it :roll_eyes:. @tommy would you mind merging, please, if necessary?


(Tommy Lowe) #15

Thanks Rod! Have combined the two @Vlad


(Chris) #16

This seems like an awful idea to me.
Therefore it’s guaranteed to change the world.


(Tommy Lowe) #17

Valuation has been revised down to £50m…


(Big Boss) #18

Was just about to post this! Fast fingers!

Where is my barge pole?


(Vladislav Kozub) #19

This is so unprofessional though… Jumping into crowdfunding and cutting £50m of valuation halfway through. Really not the behaviour you would expect.


(Christopher) #20

Almost every comment on their Crowdcube discussion is “your valuation is ridiculous” “this is an insult” or “what are you thinking?” so there’s seeming consensus amongst the crowd investors. Interestingly, some of the comments were also aimed at Crowdcube, for letting them pitch with such a high valuation.

I think it wouldn’t be too much of a stretch to say this pressure has led to this valuation adjustment, driven in turn by the need for capital to satisfy the regulator in light of their application process.