Crowdfunding Dream Comes True for Financial Fairy Tales
In a time of tough lending conditions for UK SMEs, here’s one business story has a happy ending…
In just five days after the initial pitch Daniel’s business attracted twenty two investors on Crowdcube for a 20% stake in his venture.
Speaking to is4profit Daniel had this to say about his fundraising experience on Crowdcube:
“I was delighted and very pleasantly surprised how quickly we reached our target. It’s a great feeling to know that so many other people support your business vision and are prepared to back it with real money.”
Financial Fairy Tales is a novel take on the children’s story book with yarns that promote and encourage financial literacy amongst youngsters. It was during Daniel’s time as a teacher that he realised there was a huge lack of support for all things fiscal in the education system and, after becoming an education consultant and speaking on money matters, he set up Financial Fairy Tales this year.
Thousands of copies of Daniel’s books have been sold worldwide with titles such as The Magic Magpie and The Last Gold Coin teaching children the value of money – Financial Fairy Tales are not just pretty pages; they introduce children to the concepts of saving and investment.
His book Dreams Can Come True was even a finalist for an award in the USA where Daniel has been looking for his investors to come onboard, helping to finance overseas marketing and product development.
Daniel decided not to approach traditional lenders because, being a relatively new business, he had a low expectation of success.
“The ideal of crowdfunding appealed as we already had a strong following of customers and social media supporters. So this was a chance to allow others to share in both the growth of the business and the wider mission of the company.”
Speaking about using Crowdcube to pitch to investors, Daniel said:
“I liked the control that crowdfunding gives to a small business with solid potential like ours. We were able to use Crowdcube to share the pitch with our existing customers and supporters as well as many potential new investors. I liked the idea of bringing investors into the business who shared the passion and purpose for what we are trying to achieve.”
Luke Lang, the co-founder and marketing director of Crowdcube, echoed Daniel Britton’s thoughts on connecting on a higher level with investors, adding that the background of the pitcher is vital when attracting business funding through the platform:
“Our recent research study into investor motives highlighted The Team or Individual (behind a pitch) as one of the most important factors when investing in start-up or growing businesses. Their experience and expertise is crucial for investors who increasingly back a person as well as an idea.”
Since launching in February 2011 Crowdcube has found funding for 31 pitches and raised £4.45 million in seed and growth capital.
Amongst the successful pitches, notable businesses include St Vibes, with a new bar & restaurant to open in Shoreditch, with 50 investors funding the venture to the tune of £250,000 and The Thoughtful Bread Company, near Bath, which raised £55,000 to expand the number of retail premises and open a bakery school.
Luke Lang described the demographic of Crowdcube investors, saying:
“Our investors are equally split between those who have little experience, those with moderate experience, but taking an active involvement in their personal finances, and those who are very experienced at investing. Around 78% of investors are male.”
Read more about Crowdcube in this infographic.