RE: Funding22 Aug 2022 10:45
I remember reading years ago that during times of significant unrest, such as wars and economic downturns, it is an opportunity to make money! I viewed the pandemic as significant unrest. I also remember reading, only invest in something you understand.
I foresaw schools closing and the move to online learning, which meant Edtech was booming and accelerating at a pace. I researched and decided on Dev. Why?
1) I understood the sector.
2) I believed good money could be made.
3) my research led me to believe some key investors believed Dev would do well.
4) Dev was valued low (£10m) but see. As a future unicorn. Big talk for a small company…x 100 return.
5) I invested initially at 2p, in Feb 2019.
6) Niche product.
Since then
1) The world has changed massively.
2) Dev made HUGE gains very quickly. Year 1
3) Then it stagnated in SP from 12 to 30 months and I feel strongly it will drop significantly on relisting.
4) We are on the throws of a global recession.
5) Inflation is rocketing.
6) interest rates are going up.
7) Disposable income is falling through the floor.
The surrounding economic environment is very different to Feb 2019.
Yes, we’re primarily focussed on India but it will hit everywhere soon. Are people going to pay £35 minimum for careers advice (paraphrased) or pay for heating / food / clothing / mortgage? I know what I would do.
Investing in a potential unicorn at 2p when unicorn status was potentially 126p….in very different economic times, is very different to investing in a potential unicorn at 30p with a zillion warrants that reduce the unicorn share significantly. Add in the frustration of delisting, poor communication, further dilution, and a prospectus that was in the late stages of production, 9 months ago and the reality of my dev investment has changed significantly.
Everyone thought that funding for Dev would come through 50p warrants from Von Rosen etc….well it doesn’t look like that is happening any time soon. So instead we get a funding facility with more warrants.
This will drop…and if people are happy to hold to see it rise in 2 years, that’s fine. Good luck to them.
Comparisons to BYJU etc…and the number of million students, is futile. BYJU is a private company which are often significantly more highly valued.
For clarity the share price was 31p 12 months ago….now we’re delisted at 31p….with prospect of it going lower on relisting. We were once at 47p+.
A disappointing year.
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