Crowdfunding bears fruit for local businesses
A congress in Flanders aims to guide young businesses looking for investment from the public, with some companies already celebrating success
Show us the money
To further promote crowdfunding in Flanders, the Antwerp and Waasland branch of Voka, the regional chamber of commerce, is hosting a congress on the subject this month with Dutch consultancy Douw & Koren.
“We strongly believe in this alternative form of financing for entrepreneurs,” says Voka spokesperson Victoria Smet. “The advantages that crowdfunding has in testing the market for input from potential investors, for example, are numerous. For Voka, the congress is an opportunity to inform businesspeople, financial professionals and investors about how the idea works and what the prospective rewards are.”
The types of companies that turn to crowdfunding range in size and sector, and they can offer a variety of options to potential investors, including sponsorship, a reward-based system, loans and equity. In some cases people invest money and receive a small reward like a CD, a concert ticket or merchandise; in other cases an investment operates more as a loan or with a market-based reward.
Expertise on hand
Crowdfunding, according to Smet, is also “an ideal and inexpensive way to measure the market viability of a new idea for a product or service. If a lot of people are interested in investing in a company, it’s easier to convince professional investors and the market of the feasibility of the product or service.”
We strongly believe in this alternative form of financing for entrepreneurs
In addition to learning about the mechanics of crowdfunding, attendees at the congress will have access to the tools they need and the contacts to start the process. “Businesspeople will be able to learn from the experiences of national and international crowdfunding companies.”
The congress will also be an opportunity for networking among entrepreneurs, financial specialists and authorities from the chamber of commerce.
Among the firms that will be attending the congress is Hasselt-based Valkenborg & Contreras, a two-person operation (pictured) that produces organic pear juice under the Toffe Peren brand. Through the crowdfunding platform Ulule, the company surpassed their objective of €15,000.
Ready to go
Co-founder Sebastian Contreras was enthusiastic about his company’s experience with crowdfunding. “I would recommend it if you’re really ready to do it,” he says. “You should know your business model.” He believes that businesses should only use crowdfunding when their plans and understanding of the market are in place. “It’s at the end that you turn to crowdfunding, not at the beginning.”
Contreras also advises companies not to start unless they’re sure they can achieve their goal. As well as raising capital, his company uses crowdfunding as a marketing tool, by which it promotes itself on various fronts: online, in the field, at trade shows and in conversations with decision-makers.
I would recommend it if you’re really ready to do it. You should know your business model
Although raising money from strangers requires a lot of work in gaining their trust, Voka expects crowdfunding to grow. The view of the process as a passing fad has now largely given way to the conviction that there are lots of people who value personal engagement with projects they help to finance.
There are already about 20 crowdfunding platforms in Flanders, while other local success stories include Onak foldable canoes (which raised €235,000 on Kickstarter) and Ireachm, a mobile phone answering service (€70,000 on Mymicroinvest).
Douw & Koren say more than €13.3 million has been raised via this method in Belgium since the beginning of 2016: more than the entire amount collected in 2015.
21 September, ALM, Filip Williotstraat 9, Berchem
Photo courtesy Toffe Peren
Voka
companies represented by Voka across Flanders and Brussels
regional chambers make up the association
chambers of commerce across Europe
- Voka
- Flanders Investment and Trade
- Agentschap Ondernemen
