Righteous is a UK-based salad dressing company that successfully crowdfunded their advertising campaign using CrowdCube.com. The company produces salad dressings that are all natural and that are highly regarded for their quality. The founder of the business, Gem Misa, wanted to expand their sales overseas and to, of course, get the product into new markets.
In the end, the company managed to get £75,000 toward the effort, with 15% equity offered over the course of a month. The company's investment graph shows steadily increasing interest over the period that they were seeking funding, owing to several different factors. The total funding project was slated for 40 days and funding was completed in February of 2012.
Why It Worked
Righteous had quite a few things going in its favor from the start. The company already had a good reputation for its salad dressings and it was a realistic proposition that, with funding, the company could expand successfully into new markets. In addition to this, the salad dressing was already sold in several popular chains, showing that the company already enjoyed some success, which does help with persuading investors to put their money down for a project.
Misa had already been successful in the salad dressing world, having started out in the Philippines, where she was born, and enjoying ever greater success since that time. All of these things give the company the sort of appeal that investors who are attracted to success, rather than risk, tend to look for.
In addition to all of these advantages, the salad dressing itself has advantages as a product. It is free of gluten, preservatives and is appropriate for both vegetarian and vegan diets. With people increasingly showing an interest in protecting their health by being more selective about what they eat, the product has a natural advantage in the growing health food industry.
Righteous provided a clear path forward or investors by giving them specific goals and demonstrating that the company can realistically achieve them.
Lessons to Take Away
Righteous is a bit different than many other crowdfunding projects in that the company was already very well-established. This company happened to be looking to increase their growth, to expand into other markets and to increase their profitability overall. Unfortunately, companies that may have a good shot at achieving more success may not consider crowdfunding as a viable way to do it, assuming that crowd funding is only made for companies that are startups.
Companies that are already successful can benefit from crowdfunding. In fact, a track record of success is one of the most persuasive things that you can show investors. Because they know that the management is competent, the product is salable and the company has very specific goals that they are trying to achieve, investors can contribute to the project with more confidence. Righteous enjoyed success specifically for those reasons and, of course, because of the fact that their product has a reputation for being of a high quality, which always has appeal with people looking to invest in a company.