News Luke Lang, Co-founder of Crowdcube
Crowdcube and Entrepreneur Country partner to secure investment for OVIVO Mobile
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investment from 68 investors through Crowdcube in March 2013 to become the first business referred by Entrepreneur Country and Ariadne Capital to hit its funding target. The Mobile Virtual Network Operator (MVNO) led by CEO and founder Dariush Zand, which buys wholesale airtime from Vodafone UK through its aggregator Cognatel, gave away a 12.5 per cent equity stake in the business to secure the finance.
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As the world’s first equity crowdfunding platform, I am proud that we here at Crowdcube have helped to transform how entrepreneurs can raise equity finance by opening the door to a larger and different group of potential investors. Our aim when building Crowdcube was to help empower entrepreneurs like Dariush to bypass traditional business angel networks and banks and secure early stage seed funding by connecting with a nation of ‘armchair dragons.’
In terms of our partnership with Entrepreneur Country, we have long admired the work that they do to promote entrepreneurship and entrepreneur-led economic growth in the UK. Entrepreneurs are vital for the future of the UK and Europe, so we were delighted when Entrepreneur Country introduced us to Dariush, as well as assisted in promoting him across their network of investors to help raise the seed capital he needed to take OVIVO to the next level.
OVIVO is a SIM-only, Pay as You Go provider, with a big difference. It gives customers free calls, texts and data each month, there is no need to top-up to get your free allowance, there are no contracts, no commitments and you are free to leave at any time.
The business worked hard to put together a strong and professional pitch complete with a business plan, financial forecasts and video presentation.
Dariush Zand embraced the philosophy that underpins all good crowdfunding applicants. He was proactive, prepared and eager to engage with investors. He kept investors abreast of developments with regular updates on his pitch, with these updates being automatically emailed to his current investors and over 100 Crowdcube members who were following his pitch. Dariush’s ability to respond readily to investors’ questions in OVIVO’s dedicated forum also played a critical role in his ultimate success.
OVIVO was featured regularly in weekly emails sent by 12 entrepreneurcountry
Crowdcube to its members to inform them of the pitch’s progress towards its £150,000 investment target. The company also held two well-attended webinars – live online video pitches with Q&A sessions – organised by Crowdcube to help Dariush to present to potential investors and foster interest.
Over 50 per cent of the investment target was invested in the final few days of the pitch as interest in OVIVO grew. This acceleration stage for a crowdfunding pitch is commonplace and OVIVO was in the enviable position of being oversubscribed, with many snoozing investors missing out as the pitch raced across the line. Around two- thirds of the amount raised came from investments of over £5,000, which demonstrates the level of interest that the pitch attracted.
Since launching in 2011, 42 businesses have raised £5.8 million through Crowdcube, which now has over 32,000 registered investors. If you are interested in raising finance for your company or investing in a business, then please visit the Crowdcube website. Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions.
www.crowdcube.com
am happy to announce that London-based OVIVO Mobile successfully secured £150,000
Dariush Zand
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