Save content
Have you found this content useful? Use the button above to save it to your profile.

Can I hitch a ride on the Oxbridge crowdfunding bandwagon?

4th Sep 2013
Save content
Have you found this content useful? Use the button above to save it to your profile.

(This is a modified version of an article that appeared in The Wall )

Did you know that a significant number of UK crowdfund investors are Oxbridge based?

Could one thus conclude that crowdfunders are both wealthly and wise?

Possibly not - but the stats Seedrs has gleaned do make interesting reading…

But first; It’s incredible that Pret a Manger’s™ founders Sinclair Beecham and Julian Metcalf started their company way back in 1986; “with no money”.

Yet Pret was sold in 2008 for £345 million to Bridgepoint Capital.

Similarly Hertfordshire farmer, Will Chase started Tyrrell™ Crisps in 2002 on a shoestring – it has just been sold for £100 million to a luxury brand investor, Invescorp.

Their fairy tale success was all about product, passion and proactive brand building strategies – despite a lack of early capital.

But, as we well know, for every good fortune story, there are countless horror stories that we will never get a chance to hear about, because they never even got started – simply for want of adequate start-up finance.

It makes you wonder - what great ideas and businesses has UK plc lost out on - because of this?

Given this reality - what can our entrepreneurs do?

Step forward crowdfunders – bravely venturing where our high-street banks are too timid to tread.

Instead of going cup in hand and signing over your property for the privilege of a high street bank loan – the brave new digital age has come up with a nifty way in which 000’s of people can invest small sums of money in businesses that take their fancy. In the process, they benefit with share stakes, freebie products, involvement in marketing (perhaps) and the warm glow of knowing they are supporting a businessperson trying to build a worthy business.

It’s called crowdfunding.

In 2013 crowdfunding is estimated to raise globally a WHOPPING $3.0 billion. In the UK the figure could be as high as £300 million. That’s a hell of a lot of UK small businesses given a crucial lifeline – at a crucial moment.

I hope to be one of those.

Seedrs – the UK’s fastest growing crowdfunder, has done some rather interesting research about the crowdfunding phenomenon, based on its own direct experience.

Here are the findings that grabbed my eye:

·      Average time for a successful project to get it funds – only 28 days

·      Average number of investors – 70

·      Average amount raised - £51,686

And in terms of profiling the Investors:

·      Average age 40 (but youngest was 18 and oldest 80)

·      87% are men

·      They are mostly from London, Cambridge, Manchester, Oxford and Bristol

That last stat is interesting – why are there so many Oxbridge crowdfunding investors…?

The simplicity of signing onto a site and making an investment, from £10 upwards, is very refreshing.

Similarly the SEIS tax breaks for UK taxpayers (50% of your income tax bill can be cancelled) are astounding. (Question: why does the Government give such generous tax breaks – whilst allowing our high street banks to sit on their cash hoards and not lend to desperate smes?)

But perhaps the most interesting stat is neatly summarised in this chart:

This simple chart shows that the ‘likelihood’ of funding success improves dramatically when entrepreneurs manage to hit the magic 35% of target funds figure. If they hit that figure – they then appear to have a 100% chance of achieving their TOTAL funding target.

It’s all about the bandwagon effect – which can be best defined as; "the probability of any individual adopting ‘something’ increases with the proportion that have already done so". Not perhaps that new a concept – but in the age of social media and digital marketing, this is an even stronger and rapid impetus for funding good than ever before.

I really like that 35% stat – and I hope it works in my favour with the launch this week of my £100,000 Amano Tongue Cleanser funding exercise on Seedrs.

Please take a look at the video and summary e-commerce business plan on the Seedrs site - and then let me know if you find the Amano Tongue Cleanser business proposition mouth-wateringly compelling

(or stale)…

Tags:

You might also be interested in

Replies (8)

Please login or register to join the discussion.

avatar
By Ned Ludd
04th Sep 2013 10:02

:)
Great looking product Mano.

Gotta say seedrs site is pretty slick too.

Think any serious investors will be impressed with the video pitch; throwing in a name such as Harrods can only do good.

Off to an impressive start with 12% on day one.

Hate to ask this but what happens if you fail to reach your target? Do you proceed with what you've got or is it like Dragons Den where it's all or nothing?

Wishing you all the best with this as always as its clear you've put a great deal of time and effort in.

Mike

Thanks (0)
Replying to ShayaG:
By Mano Manoharan
04th Sep 2013 10:13

its all or nothing

Thanks for those hugely supportive words Mike

It is all or nothing - and I have a 90 day deadline

Because of the SEIS /crowdfunding 'rules' only UK investors can participate - which is a shame because I had lined up some US ones...

So do you want to see the full business plan?    

;-)

Thanks (0)
avatar
By Ned Ludd
04th Sep 2013 11:02

if...............

if I was in a position to invest I would certainly back you............                                                                                                                                                                                                                                                                                                  alas, negative equity, 3 kids, one on the way, one ex, a CSA problem and a mortgage with Bank of Kabul mean I'm not really in that position  :)                                                                                                                                                                                                                                                                                                    fingers crossed for you though mate!

Thanks (0)
Replying to Tosie:
By Mano Manoharan
04th Sep 2013 11:33

sorry to hear about your predicament

Really sorry to hear about your personal circumstances... (not the kids and "one on way" part though - congrats)

Luke Johnson did a good piece in the FT about being positive in business and life

http://www.ft.com/cms/s/0/1a442b20-033c-11e3-b871-00144feab7de.html?site...

(You seem a positive guy, it may help reinforce this philosophy - Luke always inspires me)

PS: Can I possibly have your email?

BR

Mano

 

Thanks (0)
avatar
By Ned Ludd
04th Sep 2013 11:45

cheers mano

I don't really see it as a predicament;                                                                                                                                                                                                                                                                                                  suppose it just a fact of modern day life;                                                                                                                                                       i'll send you a pm with the e mailaddress

Thanks (0)
By Mano Manoharan
04th Sep 2013 12:14

you are right - but intrigued

who is "Bank of Kabul" then?

Thanks (0)
avatar
By Ned Ludd
04th Sep 2013 12:27

not a real one

just an indication of how far off the high street I am with the mortgage    :)

Thanks (0)
By Mano Manoharan
06th Sep 2013 09:24

but not as far as...

Wongaland 

Thanks (0)