The nuances associated with Tropical Gyro’s bid to raise at least $320,000 through crowdfunding has taught ArawakX important lessons about about its nascent crowdfunding platform, ArawakX’s co-founder D’Arcy Rahming Jr. said yesterday, explaining that Tropical Gyros will move forward with the money it has already raised despite it being lower than the number set on the platform.
“As we’re learning this market and we’re learning the tool (crowdfunding), what we want to do is share that information with potential issuers that may be considering this fundraising,” said Rahming.
With the imminent expansion of Tropical Gyros through money raised on the platform, and with Foot Care Rx, which recently launched on the platform, long past its minimum raise point, ArawakX is now on the the plus side of churning out funded companies.
Rahming, who made his comments during a press conference to announce Tropical Gyros’ new location at RND Plaza on John F. Kennedy Drive, said another company, which will be in the area of petroleum, is set to launch on the platform next week.
He said ArawakX now recognizes that some companies do not need to hold to a minimum raise point that puts the finish line too far out of reach in some instances.
“So recognizing that, the commission and ourselves, we were looking at this and said ‘we really actually don’t need to set the minimum so high for these projects to be successful’,” said Rahming.
“The nature of crowdfunding drives up sales because people want to touch. We encourage people to go down to the business. See it for yourself… and that look at the company is translated in cash.
“So, why we were able to do the reduction [in the minimum raise] is because of that.”
Tropical Gyros owner Chef Kevin Culmer said last month the company had $100,000 in sales.
He explained that this boost allowed the company to sink more of its own money into the expansion, instead of waiting for investors to make good on their pledges or for more to come on board.
He hopes to have the new locations, which includes a distribution center in the same plaza, opened by December.
The Securities Commission of The Bahamas gave the company a 30-day extension on its fundraising bid to see if more of the $448,000 pledged would translate to cash in hand. However, Culmer and his team are moving forward with their second location, with the $180,000 that was raised and committed thus far.
“Today brings a dream come true, said Culmer. “We presented to ArawakX with the hope of expanding Tropical Gyros… showing the viability of this business, of the product and the brand we’ve created. To sit here today with a second location behind us, with doors open to start work, with the assistance of the crowdfunding platform ArawakX to raise the money to get it done… I’m truly humbled, I’m grateful. I’m going to work very hard to ensure you get a great return on your investment.”
