Crowdfunding Campaign Tips – Molecular Warehouse

Learn how Molecular Warehouse raised £737,480 and overfunded with 245% on Crowdcube.

In this video interview we talk with Silo from Molecular Warehouse about how they approached their campaign.

Read on to find out more about how to run Equity Crowdfunding campaigns.

Molecular Warehouse is backed by Oxford Technology, has a disruptive, patent-pending biosensor technology designed to enable people to monitor their health using their smartphones. First applications will be for kidney transplantation and chronic stress. The in vitro diagnostic device market is $58bn. They raised £737,480 and overfunded with 245% on Crowdcube.

How did you approach running your Equity crowdfunding campaign?

A lot of companies would look into crowdfunding as a way to raise funds and at the same time do a free marketing campaign, so they get a lot of exposure in the media, and they get a lot of new potential customers as well.

In our case, it was a bit more about being able to move quickly raising the funds that we wanted. Because it’s a very clear timeline. If you are used to working with venture capitalists the timelines are much more fuzzy. I mean, it can take 6 months or it can take 9 months; it’s a bit unclear. Whereas on CrowdCube, we knew the moment we launched the campaign, we would have, let’s say close the campaign in 30 days, and there would be about 30 days to get the funds in the bank.

What companies should raise with Equity Crowdfunding?

I think it’s a bit of a myopic view of the crowdfunding platform that says that they think it’s all consumers that don’t maybe do very sophisticated investments. But in reality, a platform like CrowdCube that has 300,000, I think, registered investors and a lot of those, what I found have their own businesses. They do their own businesses and are B2B. A lot of investors will not invest in more consumer-oriented companies. They actually want to see companies like ourselves which are doing patent-protected B2B kind of revenue streams and a bit more sophisticated technology.

What is the most important part of an Equity Crowdfunding Campaign?

Managing the campaign is, I think, one of the most critical points. There are certain levels where CrowdCube will communicate to investors every week with a newsletter, and there are certain thresholds where your company will be showcased. So we try to hit every point every week. That means in the first week you launch the campaign, you’re showcased as a new company. Then the next week, we went over a 50% threshold of fundings raised. And that means then your showcase is kind of a shaker or mover, or something like that. And then the next week, we had reached 80%, which is again a newsletter communication comes out. So you have to be really executing the campaign as with everything as you do on you stock – it needs to be flawless.

So a lot of people will look at it the first week, and they know they have 30 days. They won’t do much. They next week are already at 50%. Then the next week is 80%. You know you need to move fast if you want to get on the company. So I think keeping that attention on your company and the visibility is very important.

Why did you choose to use Crowdcube over other platforms?

I think Crowdcube has the largest network of investors registered, which obviously in the case of crowdfunding is a big plus. They’re kind of the market leaders – that’s one reason.

The second one is the branding of the site was more closely aligned to the brand I wanted to transmit about my company. Obviously, we’re a high-end technology company with sophisticated tech. We didn’t want to be on a platform that looked clunky, if you know what I mean, that would reflect bad on our brand.

Third, the relationship with the team as I knew them a bit and I had been doing part of the initial process with them, they did a very good job to make it easy for me and they have a very good team and too, the process as a founder to raise was also very streamlined.

You can see Molecular Warehouse campaign on CrowdCube here: