Interview Catherine Wierda
'Crowdfunding works best with an honest story'
De Fryske cheese is a brand with a nature-inclusive mission. Catharinus Wierda came up with the Fryske with the idea of bringing the Frisian landscape, nature and animals together in a sustainably responsible cheese. The success is now starting to have an effect, so he started with through crowdfunding, so that he can build up and expand the cheese stock.
Wierda previously held various sustainability positions in the dairy sector. He takes sustainability for granted, but it was sometimes difficult to get things done. "Perhaps I already wanted things for which the practice was not yet ready," says Wierda. The idea of De Fryske originated in a meadow in the Frisian countryside. "I heard the meadow birds that are under increasing pressure and saw a lot of grass around me with relatively little maize. It occurred to me that the milk produced here is the ideal milk for making cheese. Moreover, it is produced in a sustainable way. and nature-inclusive way.
How did the concept originate?
"I didn't want 'ordinary' farmhouse cheese. It had to become a concept in which I can scale up and work on my sustainable ambitions. I can speak of a challenge, because where innovation and a sustainable food world often require a short, transparent chain "If it also has to be scalable, then that is very difficult in dairy. Of course dairy farmers supply to milk processors, I first had to intervene. After many discussions, I got a short chain off the ground that I am very happy about. I started with one Farmel dairy farmer, later on there were two. I have now managed to set up a collaboration with FrieslandCampina in which 5 dairy farmers are involved. The milk is processed in Rouveen. If the market develops further, I am scaling up to more dairy farmers, but for now I can't process all the milk from these five farmers into cheese, so that's not an issue yet."
Why did you decide to realize financing through crowdfunding?
"I need a certain amount of capital to be able to build up the larger cheese stock. I myself have too little equity for this. Financing at the bank is of course an option, but someone pointed out the possibility of crowdfunding. They look at the bank. mainly to a minimal risk on paper, the process prior to the financing is time consuming and also involves costs. With crowdfunding you borrow money from a large group of people. The risk for these people is of course there, but they know "We know exactly where the money goes. And above all have confidence in the initiative and the person. The crowdfunding gives De Fryske a solid foundation, even if I now want to request additional financing from the bank."
How did you like it?
"For me it was a big step to move to crowdfunding. I find it quite a bit to ask others for money because I want to finance something in my own company. As an entrepreneur I like to solve it myself. But sometimes you have to who proudly walk, if you want to achieve something. By talking to many people about crowdfunding, I was enthusiastic about it, especially because this way of financing offers you the opportunity to remain autonomous and independent for longer. you often have to be able to switch quickly, if you went to the right you suddenly have to go left.If you have to continuously account to investors for why you are taking certain steps, you will quickly run into differing opinions and a time-consuming process. crowdfunding lends you money, but does not buy in and thereby do not buy a say in the company, as is often the case with an investor. and discussing it with who I want. The lenders want their money back at the end of the ride and in the meantime enjoy a nice return. In my case I give 2% interest and 2% in the form of cheese. It does not mean that I do not let the lenders think along, I have also found a suitable place within the concept for that."
How do you give the lenders the certainty that they will actually get their money back at the end of the ride?
"The financial security is mainly due to the fact that I use the money to invest in the product, the cheese stock. I do not use it to pay wages, for example. The money continues to upgrade itself as long as the cheese also retains its value. there is always a risk that the product may lose value, since there is a difference between execution and market value, but even if the product is sold at a lower value, there is money again, which is not the case when you invest in wages or other fixed costs. Ultimately, the goal is of course that I can grow with my own capital. If it turns out that things did not go as planned at the end of the ride, then I could, for example, refinance with a new crowdfunding. That's not the goal, but they are possibilities."
"An advantage of crowdfunding is that it also includes a personal story. People know where they invest their money. That is something that seems to be becoming increasingly important today. I can offer that personal story and I try to be transparent to the lenders. "You have a kind of bond with each other and they generally invest in your story, so that should also be leading. You can't hide in an anonymous world. Because you have contact with each other, there is trust."
Do you recommend other entrepreneurs to use crowdfunding and what tips do you have?
"Make sure you have a good story and then translate it honestly and transparently to the outside world. If you can do that, then I definitely recommend it. I was greatly surprised at how large the support base is in my network and how enthusiastically people stepped in. It gives my company support and confidence. Most people have invested purely for the story, which is why I think that is so important. People have also stepped in who know exactly what happens with their money, something you can do with a large investor hardly ever hears. Of course family and friends have stepped in, but also people I don't know. When you do this you need to make sure that you can give people the confidence they are looking for. Stay honest, not alone to the crowd, but also to yourself. There are many people who have money and want to invest, you just have to know how to attract them in the right way."
Jorine Cosse
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.