FarmDrop’s crowdfunding campaign has got off to a flying start, with £299,060 invested in the first 3 days. Ben Patten, one of FarmDrop’s co-founders explores the reasons FarmDrop chose to go this way.
When we came to the question of how we were going to fund the business, we had always instinctively felt that crowdfunding would be our best option. And the more we looked at it, the more convinced we were of the benefits of crowdfunding:
Helps find people who understand FarmDrop’s business model
FarmDrop’s model has parallels with crowdfunding. One way FarmDrop can be described is as an online buying club. We are pooling the demand of a group of people to make it worthwhile for producers to supply direct and at a competitive price. With crowdfunding we are pulling together demand for stakes ranging between £10 and £70,000 plus. So, we’re already finding that as a group the crowdfunding investors understand our business model quicker - particularly the way the Internet plays a disruptive role - and see its true potential.
Attracts pioneers, who are keen to break the rules
If you have a cursory glance through the businesses listed on Crowdcube, you will find a lot of new concepts trying to break the mould in their industry. We’re passionate about our mission to create and grow more sustainable local food systems, and crowdfunding is a great way to find those looking to support real change. They understand the problems with the current industry dynamic and want to create change.
Allows those who use the platform have a stake in it…
We want to be able to let our Members, Producers and Keepers own a share of the business. They are helping us get this business off the ground, so it feels good to offer them a stake in its future.
… and improve it quickly, …
These are the people best placed to help us improve the platform, so it’s great to have them as part of the team. These people are intrinsic to FarmDrop’s success.
… plus they’ll shout about us!
Anyone who uses FarmDrop regularly is sold on the business model and pretty au fait with the power of social media. So, by having our greatest fans have the opportunity to own a bit of us, we’re also finding some of our biggest advocates. A whole army out there who are ready to promote us to all and sundry, and who are that bit more motivated to ensure future success.
It’s just the most efficient marketing tool ever
Within 3 days of having the campaign live we have attracted over £299,060 from 91 investors, and 4752 people have viewed the campaign at a rate of 1187 a day. (I’ve had to change these numbers three times while writing this blog, so check back to see where they are at now). We could never find people who want to invest in our business at this rate in any other way.
The idea behind our business is very simple; people who make or grow food can sell it direct. However, our format is such a departure from the way people are used to buying their food that many take a while to get the whole FarmDrop experience. The crowdfunding community get us and the process works for us on so many levels. You can probably tell we’re really enjoying the ride. And the most important result is having a big group of committed supporters join us in making FarmDrop a massive success.
You can find out more about FarmDrop’s plans by looking at our video and more on how to invest can be found on the CrowdCube site. We hope you can join the journey, and help us be better and quicker along the way.