The sale of Feedr should be a thing of celebration but it is not currently as some Crowdcube investors are questioning the supposed Return on Investment.
An investor I know personally is disputing the claim by Matt Cooper that investors got 2.8x returns as He only got 1.768x return on investment which is 1.69x after fees.
share price bought at £1.34
sold at £2.37!
2.37/1.34 = 1.768x
but in fact after fees I received 1.69x only
£19.5m / £4.5 = 4.33x
£19.5million (His conversion) = sale price in Dollar terms was $24million
4.5million = preMoney
I think there is need for full transparency. I did not invest in Feedr so I do not know what is going on only sharing the information given by my investor friend.
As for the information on 2.8x it was Matt Cooper of Crowdcube who posted it on LinkedIn in a congratulatory message to Damien Lane of Episode 1.
So is it 2.8x or 1.79x or 4.33x?
Another point raised by my source was the promise of 8 - 10x during their raise. Was the Feedr team rushing off the sale too early or too optimistic in their projection?
Feedr investors this is your day in the sun!