Welcome to the Slow Money Club Podcast. The show giving you realistic ways of attaining financial freedom. We share Get Rich Slow strategies to help you go from employee to entrepreneur and turn your dreams into income streams.
In this episode, we are joined by Davin Poonwassie, a pioneer in the UK crowdfunding sector. Davin and his wife are the founders of Simple Crowdfunding a Property Crowdfunding marketplace that connects investors with fundraisers.
Prior to Crowdfunding Davin had an IT background specialising in network and database management. He worked on innovative projects and teams responsible for over 200 servers across Europe. This gave him the experience on the distributed system well for Bitcoin and Blockchain were buzzwords. (As we all now known in this time, Cryptocurrency is based on Blockchain which uses distributed technology.)
Starting early, Davin began his property journey during university with some help from his brother. Later during his IT contracting career in the 2000s he and his wife decided to focus on property and began to build a portfolio. And it was in the process they came to look at crowdfunding as a viable business.
Using their combined skills and experience across technology, CRM, regulations and compliance they managed to create a platform based on the idea of talking to a crowd of people over the internet and using technology to safely connect people looking for money with people looking for deals.
Davin Poonwassies on Crowdfunding | Key Discussion Points
Tip for someone raising money
“Understand your long term goals. This will help you understand the way that will work for you. Once you got that formula right and you get the right people working with you, raising money gets easier. In the beginning, there’s a lot of work to do because you’ve got to learn how to present yourself and put your deal package together and talk the language the investors talk. There are people who can help you with that crowd funders, in particular, that’s what they focus on. As you get better with that more money will come.”
3 Key Things to Look at before seeking Crowdfunding for a Project
“1. How does this fit into my longer-term business building strategy? 2. Is my brand ready? 3. Is my project, right?”
3 Key Things before Funding the Project
“1. It’s understanding the process and yourself. Understanding the process in the environment and the risk of the investment itself. 2. Doing your due diligence around the individual or company and their team. 3. And then around the project.”
Biggest Risk Factor of a Crowdfunding Investment
“Have a good look at security. Is there any security associated with the investment? And how good is that security? “
Davin on Values
“I think values are huge and it’s important for people to understand their own values. Sometimes people think they know their own values but often, particularly when we are younger those goals aren’t our own. And we don’t know it. They are goals that are given to us by our parents or people who brought us up and those goals are built around somebody else’s values who grew up in another time perhaps with a different education perhaps in a different culture and certainly in a different environment and social environment. < People sometimes follow those so rigidly and don’t understand why they’ve succeeded, become maybe a doctor or a lawyer and I’ve got this great job and I’m earning a lot of money and I’ve got a flash card and a big house but are not happy. And why? Because actually your own values maybe something completely different. It's really important to understand what matters to you. What are your values and we also get sometimes of society can be quite brutal saying your values should be about cars, money, etc? Actually, when people help others and it gives them that warm fuzzy feeling and you start to realize actually that’s really important as well."
What is Planning Gain?
“Planning gain is typically somebody has land or a building they’re going to make a significant change to and that require planning permission from the council. The council may say yes, the council may say no. Depending on the detail you can make your own decision on whatever they are likely to say yes or no. But there is one certain avenue are followed that there is only so much you can do to get a yes. Now in the event of planning gain is to achieve typically the increase in value is quite significant and is mostly done with paperwork.”
Davin’s thoughts on current state with Blockchain, DLT, and Cryptocurrencies
“There are always two levels you can talk about. Crypto’s got the hype and marketing side of it and it’ll have some bubbles but it is not going to disappear. Eventually, it will become mainstream. Blockchain, the concept to blockchain is been around a long time and that is growing massively. For those who are into technology, if you look on how the internet actually works and how the addressing system works within it, it’s very very similar and is actually kind of proven technology in many respects.”
7 Habits of Highly Effective People – Stephen Covey
NLP: The Essential Guide to Neuro-Linguistic Programming – Tom Hoobyar
Simple Crowdfunding – www.simplecrowdfunding.co.uk