Crowdfunding to feed UK start-ups
Britain’s best food and drink are being offered a leg up by Crowdfunder, the platform for raising capital from armchair investors.
The crowdfunding platform has joined forces with notonthehighstreet.com, the online marketplace for indie sellers, offering a competition to provide food inventors, producers and gastro aficionados with the opportunity to raise funds to get their ventures off the ground.
The partnership could also help new companies to secure a listing with Not on the High Street that would put their products in front of millions of shoppers, joining its 5,000-strong network of businesses, selling all over the world.
One start-up that has already been through the crowdfunding process and joined Not on the High Street’s ranks is Smith & Sinclair, a maker of alcoholic sweets.
The combination of capital and being featured in a global shop window has “revolutionised our business,” claimed founder Melanie Goldsmith. The company raised £23,235 from 96 backers to develop their cocktail pastilles.
“We have been able to speak to a much wider customer base and the funding we have raised has allowed us to continue to innovate and develop our product range," Goldsmith said. "We’re looking forward to seeing who else is truly innovating in the food industry."
Crowdfunding is no silver bullet: without a high-quality product, the campaign is likely to fail
Snact fruit jerky recently raised £13,516 from 273 backers on the platform and there are currently more than 1,200 food and drink campaigns active on the site.
Crowdfunder is a rewards-based crowdfunding platform, where growing companies offer goods or services in return for funding. This has proven a popular model, as start-ups are able to raise growth capital without giving away equity in the business.
By partnering with Not on the High Street, these companies can now access a new route to market, which – alongside raising finance – is another crucial part of building a viable business.
“We believe that crowdfunding is about more than raising the money you need to get your idea off the ground,” says Crowdfunder’s Jess Ratty. “We are committed to making sure our crowdfunders have every opportunity open to them to become successful in the long-term.”
The competition opens Monday 4 April 2016 and interested applicants can pitch their start-ups or their new projects via the website:crowdfunder.co.uk
“I’m hoping that people who are thinking about launching a food or drink business will read about this opportunity and come and do it,” adds Ratty.
“Businesses of all stages can apply – crowdfunding works well for established businesses looking to test the market for new products and also start-ups at idea stages looking to the crowd to gain validation and support.”
Crowdfunding is no silver bullet: without a high-quality product and a great deal, the campaign is likely to fail, but it can help small companies find out whether there is actually demand for their products out there – something that money can’t buy.
Full Article: http://www.telegraph.co.uk/sponsored/business/sme-home/news/12208387/crowdfunding-feeds-uk-startups.html