Firelight Camps: Fan Investment Flames with Equity Crowdfunding

FIRELIGHT CAMPS

FAN INVESTMENT FLAMES WITH EQUITY CROWDFUNDING

Firelight Camps is a US company that create comfortable, stylish and revitalising camping experiences set in incredible locations. Having successfully established their first site, Firelight Ithaca, they are currently undertaking an equity crowdfunding campaign to raise funds for their second location, Firelight Phoenicia. International Glamping Business Editor Will Rusbridge caught up with co-founder Bobby Frisch.

Equity crowdfunding is used by earlystage unlisted companies (companies that are not listed on a stock market) to acquire funding by opening up investment to everyone. Previously, only very wealthy individuals and business angels were able to invest in start-ups, meaning that companies were forced to spend a lot of time and resources searching for that one perfect investor. Equity crowdfunding enables companies who are looking for investment to instead target a large group of people, ‘the crowd’, who all invest a small amount. Equity Crowdfunding takes place online via equity investment platforms, each of which can have their own set of rules. These rules can apply to a large number of criteria including minimum funding goals, a minimum amount that has to be reached or the campaign will be cancelled, or the requirements someone has to meet to become an investor.

Firelight Camps was founded by Bobby and Emma Frisch whose love of food, travel and the great outdoors led them to the hospitality industry. “Emma and I fell in love with hospitality when we opened and managed a boutique hostel in Nicaragua following my time in the Peace Corps. We were inspired by the many eco-hotels in Latin America and wanted to create a similarly sustainable, naturebased experience closer to home. Graduate school at Cornell University brought us to Ithaca, NY and upon graduation, it was a natural progression for us to combine our love of camping and stylish hotels to birth Firelight Camps.”

Firelight Ithaca is located just five miles from the vibrant little city of Ithaca in

New York. “Our huge canvas safari tents are tucked in the woods, nestled between a beautiful state park and a charming boutique hotel with a spa and bistro. Each tent has hardwood flooring, luxurious beds, and a private balcony overlooking the forest. We serve a continental breakfast each morning in our lobby tent and we spark communal campfires each night. Our bar showcases locally produced wines, spirits, and beers, and local musicians often drop by to play around the fire. Guests can hike into the park right from their tent and take a dip in Buttermilk Falls, sign up for our popular wild-foraging hikes, or spend the day exploring nearby vineyards, lakes, and quaint Finger Lakes towns.”

Currently under development, the Firelight Phoenicia site features more than half a mile of private riverfront on the Esopus Creek; “a wide, fast-flowing, fly-fishing river in the Catskills Mountains of NY just two hours from NYC.” explains Bobby. “Tended campfires will surround our central lobby, bar, market, and ‘snack-shack’, which will take inspiration from our founder’s award-winning cookbook Feast by Firelight. Oversized canvas tents will be set along wooded pathways, and will each feature stylish and comfortable furniture, a private bathroom, and front and rear decks. Guests can spend their days exploring the Catskills and in nearby Woodstock or stay on property for onsite programming like fly fishing, live music, wild-foraging, yoga, and cooking demos,” he adds.

With the Ithaca location stabilised and the second location, Phoenicia, under development, the time had come for Firelight to find additional funding to continue their growth. Having used various methods in the past, the decision was made to start an equity crowdfunding campaign.

“In the past, we have raised funds from angel investors, but I love the idea of democratizing the fundraising process and opening up the opportunity to own a piece of our company to those who already support us and love what we do –our guests. With so many people already passionate about glamping and the

Firelight mission, equity crowdfunding seemed like a great fit, and so far, it’s been a great success with over $350k raised in just over a month. We seem to be on track to meet our fundraising goal of $1 million.”

An equity crowdfunding campaign is not something to take lightly. There is a huge amount of work that goes into the process, from the initial preparation in gathering all of the required information for the campaign, to the ongoing interactions with supporters. While equity crowdfunding is very time intensive, there are a number of positives to be found alongside the financial support.

“More than anything, we are grateful for, and humbled by, the outpouring of support we have received since our launch. Like any fundraising effort, there is considerable upfront work preparing to launch the campaign, and the time and effort to successfully conduct a crowdfunding campaign is comparable to, if not in excess of, a traditional accredited-only campaign,” says Bobby.

“That said, we have already seen a number of positive outcomes in addition to raising capital. By raising funds from a large number of investors, we now have a sizeable pool of engaged supporters that will become loyal customers and brand enthusiasts. It is also an asset to be able to reach out to this pool of investors for future fundraising needs, and we expect our internal expertise in crowdfunding to be useful for upcoming projects. Lastly, as a founder, it is uplifting and reaffirming to hear kind words of support and encouragement from so many of our past guests!”

Equity crowdfunding is a great way for a company to raise funding, but it comes with its share of difficulties, especially for glamping businesses.

“Much of the online equity crowdfunding world is focused on technology or software-focused businesses, so glamping businesses may find that they don’t squarely slot into many of the crowdfunding platforms. This just means that the established marketing path set for technology companies may not directly apply, and some extra creativity may be required for a successful campaign,” says Bobby.

The Firelight crowdfunding campaign is ongoing, the minimum goal of $300 thousand has been achieved (below which the campaign would have been ‘cancelled’) and they are well on their way to the ultimate fundraising goal of $1 million. Whilst a crowdfunding campaign is open, it is essential that interaction with both investors and potential investors remains active.

“Regarding interactions, it has been great to see some of our new investors reach out to me with ideas or connections, some of which have already proven to be fruitful. I also post periodic updates on our campaign page, and we also have email newsletters and social media posts that keep our guests and investors informed. We also offer exciting “perks” with different investment tiers, like discounts on stays and personal property tours, and I look forward to meeting many of our new investors personally next season in Ithaca!” says Bobby.

Investors are ultimately investing in a campaign because they think that it will be successful, meaning that they will make a return on their investment. For product led businesses this return will most commonly be made from the profits in sales. For experience led business such as those in the hospitality industry, things get a little bit more complicated.

“We expect to be a good target for acquisition by a larger hospitality firm, a real estate group, or a private equity company once we have multiple properties open and operating,” he adds. “We have already seen some of our competitors in the glamping industry go this route and generate substantial returns. Another strategy that could produce a substantial return for our investors would be the sale or refinancing of individual properties, rather than the whole company. In that scenario, our intention is that Firelight Camps would retain a long-term management contract on each property, even after a change in ownership. Lastly, at some future point we may begin distributing dividends to investors.”

When asked about what advice he’d give to others in the glamping industry who are looking into equity crowdfunding, Bobby explains that, “I think equity crowdfunding is a great opportunity for those in the glamping industry since glamping is inherently easy to understand, photogenic, and has a large devoted following. However, it is important to understand that a large amount of upfront preparation is necessary for a successful campaign, and I would recommend enlisting the help of a marketing agency who has dealt with crowdfunding for guidance in most instances. Lastly, engagement is key and the more touchpoints you have with your prospective investors, the better!”

If you’d like to find out more about Firelight, you can find their website at firelightcamps.com, if you’d like to invest in, or find out more about, their crowdfunding campaign, you’ll find it at wefunder.com/firelightcamps.