The term TruCrowd seemed familiar when a settlement agreement with the SEC landed on my desk.
Upon searching BehindMLM, I discovered that I had indeed included it as a new development in our 2017 KulaBrands evaluation.
KulaBrands at the time was utilizing TruCrowd to sell virtual shares for $17.82.
KulaBrands advertised a “pre-money valuation” of $17.5 million to attract backers.
On May 2nd, 2020 KulaBrands finished selling its shares to 192 investors, raising a total of $97,279 in the process.
Since the TruCrowd SEC settlement got me thinking about this topic again (even though it has nothing to do with KulaBrands), I decided to take a look at the current status of KulaBrands’ offering.
Peter Gantner, who also helped develop KulaBrands, serves as the company’s CEO (right).
KulaBrands is an MLM scheme that masquerades as a crowdfunding site (affiliates vote on what to crowdfund and then do the funding).
Backers with a vested financial interest distinguish this form of crowdsourcing from the norm.
Concerning the morality of the KulaBrands idea, the success or failure of a valid crowdfunding initiative is determined by the level of interest shown by the general audience. As a rule of thumb, bad ideas don’t get financed.
It is conceivable for a bad concept to get funded through KulaBrands, where returns on investment are prioritized over the quality of the product or service being proposed.
To return to KulaBrands’ virtual share sale, the firm stated in September 2017 that it planned to undertake a $40,000 initial public offering.
It hasn’t happened as of January 2022. KuliaBrands never went public.
Healy Nutrition, separate multi-level marketing (MLM) CBD product, was introduced by KulaBrands at the start of 2019.
Unfortunately, Healy Nutrition is “not taking orders” at this time and their website is presently offline.
According to BehindMLM, in 2016 KulaBrands lost $33,981.
According to the most recent annual report for KulaBrands (2019), submitted in April 2020, the firm lost $330,746 in that year.
Increased from 2018’s $51,374 deficit. Additionally, KulaBrands has $500,000 in “long-term debt.”
To sum up, KulaBrands has not been able to turn a profit and instead continues to incur losses.
According to data provided by Alexa, KulaBrands’ website saw zero visitors throughout the vast majority of 2021.
On December 9th, KulaBrands changed their profile photo to one featuring Santa Claus. The previous entry was published on April 26, 2021.
Does anyone who was duped into buying KulaBrands stock in 2017 like to share their thoughts? Is it possible that the $97,279, along with the other money invested in KulaBrands, has been discreetly lost?