In this episode we’re joined by the founder and CEO of Firef.ly, Chad Cribbins. This is just one part of a few episodes and it focuses on the top line learnings Chad picked up after using crowdfunding platform Seedrs to raise investment for his startup.
Chad feels that the UK is experiencing a bit of a funding crunch, which makes the availability of crowdfunding sites such a useful option for startups. Enter Seedrs.
In the first instance, Chad admits that he possibly started off by aiming too high and approaching VC’s who were supportive but keen to see some real traction first. With Angel Investors being a little more conservative, Seedrs offered a great way to validate the whole concept of Firef.ly and the rest is history. As of this morning Firef.ly had overfunded by around £15K, cruising past the initial £300K target.
Chad highlighted the level of detail Seedrs organised the Firef.ly campaign into, breaking it up into three core sections:
1. Family and friends (small money, large volume)
2. People who are empathetic about the core need (For Firef.ly that’s travel junkies, a serious validation opportunity)
3. The wider audience (leveraging the wider Seedrs network following the traction gained from both 1 & 2)
An easy mistake to make when Crowdfunding:
One of Chad’s key points is to invest in your relationships BEFORE you even begin the crowdfunding journey. Most people just assume a startup got lucky when they smash their investment target but have no idea about the hard work that went into beforehand. It’s important to remember that Seedrs does not perform magic. It’s not enough to just launch a campaign and expect people to jump on baord without knowing anything about you.
The value of Seedrs and their due dligence process:
Seedrs really take care of their investors. They’re trying to build a community and network , and protect the folks that get their investments in at an early stage. Again, Chad emphasizes that you can’t just slap anything up on the website. He found himself having to locate around 200 ‘proof points’ going back multiple decades just to validate himself to the team at Seedrs before he could even begin a campaign.
In a later episode, we sit down with Chad and Lindsey, who has invested in Firef.ly using Seedrs. Lindsey prepared a number of questions for Chad to put him to the test. But that’s for another week…
If you’re interested in crowdfunding, you may want to listen to Heather Delaney’s interview ‘How To Suceed At Crowdfunding’
If you’re keen on understanding how you can invest in startups using Seedrs you might like to hear ‘How To Become A Startup Investor From Your Living Room’