Why Blast, the wildly successful investment platform, is not unanimously approved?

The story of the crowdfunding platform Blast stands out as a real success story. However, voices are being raised and denounce some of its practices, considered to be misleading.

Imbroglio around a ” fundraising »

Founded in 2022, Blast.Club allows investors to finance promising start-ups. Its co-founder, Anthony Bourbon, notably made a name for himself in 2021 thanks to his frank speaking on the show Who wants to be my partner?broadcast on M6. Blast now has 8,000 members, who have invested in 35 start-ups.

Its performance is particularly encouraging. In 2023, the company recorded a turnover of 7.3 million euros. It aims to reach 20.3 million euros in revenue this year. Despite this, criticism has darkened Blast’s reputation, including a “ fundraising » of 30 million euros claimed from its community of investors.

According to the author of the Zero Bullshit newsletter, the terms used by the company are misleading. Because the operation was actually a sale of shares (cashout), and not a traditional round of financing. It allowed Bourbon and his partner, Samuel Guez, to resell shares amounting to 20% of Blast’s total capital.

If Anthony Bourbon defends himself with the Echoesensuring “ to have hidden nothing ” of the nature of the transaction, other crowdfunding players are also stepping up to the plate.

Fees deemed too high

This is the case, for example, of Tudigo. But what a shame: this is how we kill a sector that can generate enormous good for the economy and the planet. “, criticized Alexandre Laing, its CEO, on LinkedIn. In addition to a vocabulary deemed to be tricky, Blast is accused of having used an AMF prospectus to circumvent the usual regulatory ceilings for crowdfunding set at 5 million euros.

Its aggressive communication on the potential returns of its investments is also not unanimous. Some believe that the world of start-up financing is not suitable for everyone. Furthermore, Blast’s economic model is also the subject of questions.

Its fee structure is seen as excessive by the industry, with multiple tiers of cumulative fees. Members must first pay a substantial annual subscription fee, ranging from 1,000 to 10,000 euros. Then, structuring fees of 3 to 5% are taken from each collection. Added to this are annual management fees of 1% and, in the event of the investment being successful, a share of 20% of the capital gain.

Everyone says we have high costs, but we don’t just allow you to invest in a start-up, we also organize ten events a year, we provide training and we offer expert clubs. ” assures Anthony Bourbon. The criticisms of him do not seem to really affect the entrepreneur. He even plans to continue on his momentum and carry out one cashout operation per year.

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