Description
Funding by THE PEOPLE
Approaching investment into producing fine yarns exclusively in NZ with no need to knit or stash!
Background
The Woven is a developing NZ business founded and managed by me; Michelle Joy. The heart of the business has always been keeping production in NZ and keeping the joy, values and energy of a creative business alive. This has taken a path less travelled, less financially supported and more passion led. A business with heart and with soul, and more importantly, a business with passionate customers backing every step. The Woven makes yarn for the people with the support of the people. As the business faces the age-old question of ‘how to scale when all your funds are tied up’… it becomes necessary to think outside of the knitting box …
Earlier this year the launch of your new premium yarn Smooth + Silky was successfully Funded by the People. What an achievement! And now based off the success of that and two other funded projects, The Woven Co is opening a funding drive for the flagship yarn; Sumptuous.
In order to GROW, external capital is required through means of investment and that is where you come in…
Premise
This is an exciting new initiative; Funding by THE PEOPLE. A chance to support this NZ business, with the ambition of keeping production of quality yarns in NZ, the dream to drive growth and opportunity (not just for The Woven but for other NZ Wool producers) AND you don’t need to be a knitter.
Our fourth product to be funded this way is the flagship yarn of The Woven Co; SUMPTUOUS. Due to the growing demand in our subscription channel, this yarn that is in the hearts of many makers is soon to ‘out of stock’ in the online store – this is the perfect opportunity to build on the growth and demand and scale up the stock offering.
Out of a production run of approx. 4000 units, 2250 balls will be split funded by The Collective Yarn (my new emerging business) and Funded by THE PEOPLE.
This interactive funding model allows backers to choose how much to fund (worked in a % of the total amount), so this means you could be funding $100 or $10,000 – whatever works for you – but once the threshold is met, the books for funding will be closed.
The sale of 2250 balls of SUMPTUOUS will return the collective investor’s original investment plus interest earnt. This will calculated monthly based on sales, with a maximum repayment window of 18 months from the launch of the product online. Investors have the option to be paid monthly as per the sales OR forego monthly repayments and opt for one lump sum pay out at the end.
The Numbers
Total investment required is $26,050.
Backers choose their investment level and the interest paid is a sliding scale, offering a higher rate of return for a bigger investment;
$100 to $999 will offer 5% return
$1000 to $2999 will offer 7% return
$3000 to $5999 will offer 8% return
$6000 + will offer 9% return
Example
| Investment | ROI % | Repay per ball Sold | Total Return | |
| Investor 1 | $ 100.00 | 5.0% | $ 0.047 | $ 105.00 |
| Investor 2 | $ 500.00 | 5.0% | $ 0.233 | $ 525.00 |
| Investor 3 | $ 1,000.00 | 7.0% | $ 0.476 | $ 1,070.00 |
| Investor 4 | $ 3,000.00 | 8.0% | $ 1.440 | $ 3,240.00 |
| Investor 5 | $ 5,000.00 | 9.0% | $ 2.422 | $ 5,450.00 |
| Investor 6 | $ 16,450.00 | 9.0% | $ 7.969 | $ 17,930.50 |
or Sole Investor Example
| Investment | ROI % | Repay per ball Sold | Total Return | |
| Sole Investor | $26,050.00 | 9.0% | $ 12.620 | $28,394.50 |
Key Facts to Know;
- Investment funds are returned monthly based on sales in the month (or in one lump sum at the end). The wool must be first sold to return investment. Sale of the total 2250 funded balls will return the total investment plus interest.
- The maximum window to complete this process is 18 months from launch of the product online. It is anticipated that the sales of 2250 balls will be sooner than the maximum window, but should any stock be unsold, they will be underwritten by The Woven Co at the end of 18months.
- The first 250 balls will be sold through a pre-sales event, and will not return funds to investors, these presales are not part of the 2250 units funded. The following 2250 balls sold will be the units funded, leaving the balance of the stock sold till last.
- Stock is due early 2024 with holiday season shut downs (possibly sooner)
- Investment is a contribution against raw production costs (shared with The Woven Co), not the finishing costs or any costs to get the product to market, these will be entirely covered by The Woven Co
- Investment and return will be done without GST unless you/your organization is GST registered
- Funding and returns will be supported by Greenhawk Limited, Chartered Accountants.
- All backers will hold voting rights to launch a new colour through this initiative!
- And lastly, you do not need to be a knitter to support this initiative, but all support to sale through these products as fast as possible will be beneficial for all!
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