New Crowdfunding Platform by TESCO

For those not in the know, Tesco is a multinational grocery and general merchandise retailer which has its head office based in Welwyn Garden City, Hertfordshire. It has launched its new crowdfunding platform named BackIt.

The platform, which aims to support SME’s in the food and drinks industry, was launched with four companies currently featured – Drunken Berries, Tg Green Teas, Sibling Distillery, and B-Tempted.

This platform is a rewards based crowdfunding service where the campaign borrower raising funds offer goods in exchange for your pledge. Take a look at the FAQ section to know how this works. Some campaigns can actually exceed 100% as in the case with Drunken Berries Alcoholic Prosecco Mixers which currently (at the last look) has raised 160%.

As an example, Drunken Berries Alcoholic Prosecco Mixers and Tg Green Teas hope to raise £2,000 and £10,000 respectively. While Sibling Distillery, a Cheltenham-based gin distillery, is pitching for £30,000 for its expansion and a £5,000 is the target of the gluten-free bakery in London, B-Tempted.

The supermarket said that BackIt would give small businesses the chance to “tell their story, show off their products and campaign for funding”.

Aside from the cash investment, start-ups and small suppliers from the food and drinks industry will receive pointers and mentoring from industry experts too.

Like other crowdfunding platforms, businesses offer rewards to investors while finance is only given if the goal is reached within the campaign period specified.

As an industry as a whole, this sort of crowdfunding and peer to peer lending is becoming popular and trending as a real alternative way to finance SME’s when banks have failed to deliver.