Crowd Funding
What is Crowdfunding and could it raise your pitch?
Inn Style has undoubtedly saved us time and money. Inn Style helps us convert website visitors into direct bookings without us having to lift a finger. It has undoubtedly saved us time and money. Beth Jones - Cwtch Camping, Wales www.cwtchcamping.co.uk
By Adrian Melrose, CEO, Inn Style Ltd
The practice of funding a product or venture by raising small amounts of money from a large number of people, usually via the internet. People get to invest a set amount and get something in return if the project is successful. Usually this is some equity in the business they are investing in. It has now been a year since Inn Style raised equity funding via the internet using SyndicateRoom.com – just one of the man crowdfunding platforms that are available to help businesses start and grow. SyndicateRoom.com introduced more than 20 extremely supportive investors, most of whom have participated in our most recent funding round where we have grown our share price found-fold in a year – thanks also to the support of our wonderful, growing customer base.
Inn Style opted for SyndicateRoom.com primarily because of the nature of its Syndicate of Angel Investors. Some businesses have lots of customers who would like to invest small amounts in their company’s growth. This is where either Crowdcube.com or Seedrs.com also could be attractive platforms. But for small accommodation businesses, Equity Crowdfunding will probably not be right for your business; Kickstarter.com on the other hand, was one of the first to pioneer Reward-Based crowdfunding.
When it comes to crowdfunding, there are several different platforms and models to consider, depending on the nature of your business and what you are trying to achieve. If you run a business which is structured appropriately and allows you to sell its shares and you are confident you can offer value to an investor – whether than be an increase in your share price, or a dividend flow, then equity crowdfunding may be right for you.
Without having to give away ownership in your business, you can raise growth funds by offering your crowdfunders rewards for up-front payments. This could be preferential pricing or other perks – or the ability to jump a queue in peak season. Inn Style has a great ‘secret code’ feature that unlocks preferential pricing or availability for your guests who’ve supported your crowdfunding campaign. There are many other reward-
based crowdfunding platforms available in the UK, so it is definitely worth considering. Here’s a tip: all crowdfunding sites help find a valuable new audience for you but don’t forget your current audience – they are the first to support your campaign because they trust your product. If you would like to find out more about Inn Style and their crowdfunding journey, please visit innstyle.co.uk for more information or call their friendly UK-based team on 01473 487 350/0800 00337425 Inn Style is an accommodation owner’s best friend. Think of it as an online diary, booking system and payment processing machine rolled into one simple-to-use tool.
Gl
mping
BUSINESS
33