Funding by THE PEOPLE (Smooth + Silky)
Funding by THE PEOPLE – Smooth + Silky
Approaching investment into producing fine yarns exclusively in NZ with no need to knit or stash!
The Woven is a small NZ business founded and managed by one lady; 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 …
To date investment in The Woven has come almost exclusively from Michelle’s own books, buffered by the pre-sales of products to support the production of key yarns. This has proved super effective but allows very little room for growth and no scope to deal with the significant capital required for development of key things like a new website (after the harrowing events of 2022).
External capital is required through means of investment and that is where you come in…
This is an exciting new initiative; Funding by THE PEOPLE. A chance to support this little lady, this NZ business, 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 even need to knit!
The first product to be funded this way is the re-development of The Woven Co’s classic yarn; SMOOTH or should I now say SMOOTH AND SILKY. A stunning blend of fine merino and luxurious silk.
Out of a production run of 11 colours over nearly 5000 yummy balls of delicious hand knitting yarn, 2800 balls will be Funded by THE PEOPLE.
The 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 2800 balls of SMOOTH + SILKY 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.
Total investment required is $12,607 (not including GST).
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
$6000 + will offer 9% return
|Investor 1||$ 100.00||5%||$ 0.036||$ 0.002||$ 0.038||$ 105.00|
|Investor 2||$ 500.00||5%||$ 0.179||$ 0.009||$ 0.188||$ 525.00|
|Investor 3||$ 1,000.00||7%||$ 0.357||$ 0.025||$ 0.382||$ 1,070.00|
|Investor 4||$ 3,000.00||8%||$ 1.071||$ 0.086||$ 1.157||$ 3,240.00|
|Investor 5||$ 8,007.00||9%||$ 2.860||$ 0.257||$ 3.117||$ 8,727.63|
|$ 12,607.00||$ 4.503||$ 0.38||$ 4.88||$ 13,667.6|
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 2800 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 2800 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 500 balls will be sold through a pre-sales event, and will not return funds to investors, these presales are not part of the 2800 units funded. The following 2800 balls sold will be the units funded, leaving the balance of the stock sold till last.
- Stock is due mid to late March 2023
- 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 managed and audited by Greenhawk Limited, Chartered Accountants.
- 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!