Growing concerns about an AI investment bubble have prompted several entrepreneurs, including Soothing Solutions founder Sinéad Crowther, to seek alternative funding methods. Despite successfully raising funds in the past and recently signing a major UK distribution deal, Crowther has opted for crowdfunding to support her firm’s expansion plans. The Meath-based company previously raised €1.2 million and aimed for an additional €5 million to capitalize on its growth in the UK market.
However, Crowther has since recalibrated her ambitions, deciding to pursue crowdfunding instead of traditional investment routes. “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 noted. This shift comes amid findings from the Irish Venture Capital Association’s (IVCA) latest Venture Pulse report, which revealed a dramatic 74% decline in funding deals for firms seeking between €5 million and €10 million—precisely the range where Soothing Solutions is looking for investment.
While overall venture capital funding has increased this year, the tightening of opportunities for smaller firms has made it increasingly challenging for non-tech startups to secure financing. This trend highlights a growing interest in early-stage AI investments, leaving companies like Crowther’s at a disadvantage. Nevertheless, Crowther remains optimistic that investors will still show interest in supporting her firm. “We’ve hit every milestone we put in our very first business plan to get to this point ahead of time,” she asserted.
As Crowther scaled back her initial funding goal, she aims to raise €1 million, a more achievable target given the current market climate. Soothing Solutions’ flagship product, the Tonstix honey jelly pop, was designed specifically for children to alleviate sore throats. The product is available in major pharmacy chains across Ireland and the UK, including 300 Boots stores. The company also recently launched its Tonstix Travel Pop, which has attracted distribution deals with a German-based charter airline and ongoing negotiations with other airlines.
In 2022, Soothing Solutions received funding from several prominent investors, including the food and beverage-focused VC fund Redesdale. Despite this previous success, Crowther has observed a growing trend where even traditional investors are increasingly gravitating toward AI technology platforms. “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,” she explained.
This crowdfunding initiative marks Crowther’s first experience with such platforms. She has been engaging potential investors behind the scenes, noting a surge in inquiries. “It’s a nerve-wracking time, but we’re positive,” she remarked. Despite the funding challenges, Soothing Solutions has made considerable retail gains, securing listings in every pharmacy in Ireland, as well as in Tesco and Holland & Barrett. Plans are in place to begin distributing products to 5,000 UK pharmacies through Phoenix Medical.
On the Amazon UK marketplace, Tonstix is currently ranked eighth for sore throat and cough remedies, which Crowther sees as a promising indicator for future expansion. “We’re ready to use that data and apply it to a strategy in the EU and the US,” she added, emphasizing that obtaining further funding will be critical to these plans.
In addition to private funding, the company is utilizing grant aid for research and development that has confirmed 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,” Crowther noted, highlighting the scientific backing of her product. As the investment landscape evolves, Crowther’s pivot to crowdfunding may position Soothing Solutions to navigate the complexities of a rapidly changing market.
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