Her words come amid growing fears of an AI investment bubble.
Soothing Solutions founder Sinéad Crowther – who has previously successfully raised funds and just signed a major UK distribution deal – is just one entrepreneur who has turned to crowdfunding to raise the money her firm needs to capitalise on what she believes are huge opportunities.
The Meath-based firm previously raised €1.2m and had planned to raise a further €5m to back its international expansion and to capitalise on its UK growth opportunities.
But Crowther has since scaled back those plans and opted to go the route of crowdfunding to raise the money, despite previous success with more traditional routes.
A fall of 74pc has been seen in deals in the €5m-€10m range
“We don’t at all begrudge any founder who’s secured investment, but AI is the hot space right now and the money is coming more quickly for those companies at the moment,” she said.
Last month’s Irish Venture Capital Association’s (IVCA) Venture Pulse report confirmed the tightening of funding opportunity for smaller firms.
Despite an overall rise in venture capital funding this year, it showed a sharp 74pc fall in deals in the €5m-€10m range in which Soothing Solutions is seeking investment.
Previous reports have also highlighted the growing appetite for early stage AI plays within this category, meaning a more difficult time for non-tech start-ups seeking funding.
Nevertheless, Crowther is confident that investors will emerge to back her firm.
“We’ve hit every milestone we put in our very first business plan to get to this point ahead of time,” she said.
“We still have big ambitions for expansion, but as the year evolved we saw that €5m was just way overshooting what we actually needed.
“So we just paired everything back and now we’re looking to raise a million.”
Soothing Solutions’ Tonstix honey jelly pop was designed by Crowther in 2017 specifically for children to help soothe sore throats. It is stocked by major pharmacy chains both in Ireland and the UK, including in 300 Boots stores.
It has also since developed its Tonstix Travel Pop, which is now stocked onboard a German-based charter airline, with negotiations for potential distribution deals with other airlines underway.
Back in 2022, it secured funding from food and beverage-focused VC fund Redesdale, veteran businessmen Niall Fitzgerald and former Glenn Dimplex boss Sean O’Driscoll, as well as from Enterprise Ireland.
They seem to be backing AI tech platforms, even in the food space
But Crowther has found during the latest bid to raise funds that even previously enthusiastic investors are increasingly focused on AI.
“They seem to be backing more AI technology platforms, even in the food space. The focus seems to have shifted into technology rather than brands.
“This is our first time on a crowdfunding platform. We have been talking behind the scenes to investors and they’re sending inquiries over. So it’s a nerve-wracking time, but we’re positive,” she said.
Despite its funding challenges, Soothing Solutions has made strides in terms of retail listings.
“Growth has been phenomenal. We’re listed in every pharmacy in Ireland, we’re in Holland & Barrett and in Tesco. We have secured a listing with SuperValu in the New Year.”
“In England, we’re listed in 300 Boots stores and we have now secured a listing with Phoenix Medical which distributes products to 5,000 pharmacies in the UK. We are going to go in there on a phased approach, targeting 300 to begin with.”
On Amazon UK Tonstix is now ranked eight for sore throat and cough remedies.
“We’re ready to use that data and apply it to a strategy in the EU and the US,” said Crowther. “That’s where the funding will come into play.”
The company is also using grant aid for R&D that has proven the efficacy of Tonstix.
“We were able to grow human throat cells in a lab and establish that our formulation reduces the production of inflammation markers in throat cells,” she said.
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