Extremis Technology News

The crowd funding experience

After planning this funding campaign for several months, and actively negotiating with partners for the last two, what have we learned?

 

  • The devil is in the detail
  • You have to raise 80% of the funds yourself: effectively the crowd is only going to be topping up
  •  Nobody wants to be the first investor, but when you hit the tipping point everybody wants a piece because they’re scared of missing out.
  • The tipping point varies depending on who you talk to. We’ve heard everything from 25% to 100%. It’ll be interesting to see where the tipping point comes for us.
  • You need a significant amount of investment (25-40% of your target) before you launch. Less than that and you won’t get the visibility or credibility to attract attention and attract investors.
  • You need to clearly agree the mechanics on how you show that investment.
  • Marketing matters. Press relations really matters. You need a constant stream of articles, tweets and news stories. You need to keep it fresh and interesting and you need to trumpet every milestone you hit. You can’t sit back and hope investors will come to you.
  • You need an investor day. A room somewhere central where potential investors can come and meet the management team and talk about the business in more detail. Ours will be on Wednesday 27th May, at the Latham & Watkins offices at 99 Bishopsgate, London.

 

As you might expect, it’s been an up and down ride, some of it going surprisingly smoothly and some of it being unexpectedly difficult. Like most things, a project gets more complex the closer you get to it – things that seemed simple or didn’t occur to you at all suddenly loom very large and take a disproportionate amount of your time.

Testimonials

Sebastián Smart, Executive Director, TECHO Charity UK

I’m writing to thank you and your team for all the effort that you have made to develop the Dominican Republic project, from the incredible design of the houses, the fundraising, the coordination with the DR team and the Valientes.

All this incredible work will come true in a couple of weeks. The good thing is that some of the poorest families in Latin America, those that are usually living without electricity, sewage and water, will work alongside Extremis and TECHO volunteers to have a new start, with a new house.

Just wanted to say thanks to all your team. You had been amazing!

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