THE founder of an online boutique travel business that has become one of the world's fastest crowdfunders has said raising cash through the public is a key way to secure investment for established as well as start-up firms.
Tamara Lohan, co-founder of Mr & Mrs Smith, told firms at the Inspiring Speakers events set up by KPMG around the UK taking in Glasgow and Aberdeen that it is important to highlight the benefits of crowdfunding across the board.
The business, set up with husband James in 2003, reached a £1 million fundraising target to expand in the US in a day and then raised £3.8m in the space of a week earlier this month.
It currently has over 1.5 million members around the world, and partnerships with businesses including British Airways.
Its turnover was £14.8m in 2018, up from £12.2 million in 2017.
Ms Lohan said crowdfunding forms a continued link between consumers and businesses.
She said: "It has been a critical part of the investment process.
"We crowdfunded with a bond in 2012 and one of the reasons was that we saw the Hotel Chocolat bond go ahead and their customers took their interest in chocolate, so when we did our bond we offered 7.5 per cent back if you took your interest in cash but 9% of you took it in holiday money, and 40% of the people who invested in that bond took it in holiday money.
"It engages the investors.
"They don’t just put money in and that's it, they become part of your story."
Ms Lohan said: "Showcasing more companies who have done it and done it successfully is important but also highlighting that it is not easy money.
"You have to work hard for it but it is an alternative source of funding and can be an extremely good one, especially for consumer brands."
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