October 16, 2019 – In our ITEN Startup Spotlight this month we talked with one of our ITEN company founders Amit Kothari, CEO of Tallyfy, regarding his experience with crowdfunding. Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure.
A little bit about Tallyfy: Tallyfy is a platform that lets you document and track all the recurring processes in your business. It helps you make an operations manual of all your how-to’s and procedures, and then automate the tasks as well (rather than just read the manual). Overall – Tallyfy makes decisions easy and helps your team deliver consistently amazing outcomes.
ITEN: “Tell us about your current crowdfunding campaign.”
Amit: “The terms of our crowdfunding campaign are online at https://republic.co/tallyfy – and due to SEC rules we can’t publish the terms and other information outside of the link to the Republic page!”
ITEN: “Why did you choose crowdfunding to raise funds?”
Amit: “We’re actually raising funds privately and in public!
For non-accredited or smaller investment amounts – they would need to use the Republic page. For accredited or larger investments – we are talking privately, and are raising via private SAFE notes.”
ITEN: “How did you select which platform to use?”
Amit: “We didn’t do much shopping around – to be honest. Republic seemed like good people, who support the right kind of causes, and so we went with them!”
ITEN: “What marketing elements did you have to do, or plan for to support this campaign?”
Amit: “A couple of things we are doing along with the crowdfunding is cold emails as well as a button on our website. Our website is a huge asset, since we get over $400k worth of traffic to it (from search) every month.
Traffic can easily get to 20,000+ unique visitors a day, so it’s a great avenue for exposing such an opportunity.”
ITEN: “What is the biggest lesson learned from this experience?”
Amit: “A lot of people feel more empowered with a brand if they invest in it, even if it’s a small amount. If you have something that a savvy, retail audience can use – I would highly recommend crowdfunding as a great way to not only raise some funds, but gain fans/initial traction. It’s the kind of thing you might not get with angels, although I think the comparison to angels is apples to oranges! In the end, if you’re looking to raise a little bit of money – I don’t think it matters much if the money came from angels or retail/non-accredited investors via this kind of route.”
“One other lesson we learned is how much work the Form C filing to the the SEC took. It needed a CPA review and a specialist attorney to file our Form C, which ended up being a 100+ page submission into EDGAR. We’re glad we did it though!”
For information about Tallyfy visit their website @ https://tallyfy.com
The crowdfunding page, where you can also invest – is at https://republic.co/tallyfy