Ameena Farhah, Aysha Reshma and Sadaf Abdul Jabbar often thought of opening a pastries café but hesitated due to a lack of funds. However, with the recently launched local crowdfunding platform Dubai Next, the Dubai-based childhood friends have the opportunity realise their goal.
The three young women are aiming to raise AED300,000 through Dubai Next and, just two weeks into the campaign’s launch, have secured AED3,600.
“We were considering crowdfunding through international platforms such as Kickstarter but when we heard that Sheikh Hamdan had launched Dubai Next, we thought why go for something international when we have a platform in our own house?” said Abdul Jabbar, a chartered accountant by trade.“Given that the campaign will run until November 3, we are feeling hopeful and happy with the results so far,” she added.
Abdul Jabbar explained that they chose crowdfunding over an angel investment or taking a loan from their parents because they wanted full ownership of their project.
“We wanted to do something on our own where we didn’t have to share the equity. Going with crowdfunding assures we are the sole owners of the project, which is especially important to us as we are just starting out,” she explained.
In May, Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum launched ‘Dubai Next’, a digital platform that encourages the use of crowdfunding to finance a new business venture.
The platform provides the ideal choice for students and innovators to present their projects to potential investors and supporters and enables emerging enterprises to grow, expand and launch new products.
The Mohammed Bin Rashid Establishment for SME Development (Dubai SME), the agency of Dubai Economy mandated to develop the SME sector, will provide a package of incentives for those who obtain financing on ‘Dubai Next’ including incubating the idea in the Hamdan Innovation Incubator or in one of the 14 certified incubators in Dubai – another reason why the trio chose Dubai Next for their fundraising needs.
If their campaign is successful, the trio will launch Amsay’s the Pastry Bar, a café that serves fusion desert – a combination of Italian, French and Indian pastries – and brunch items.
Abdul Jabbar and Farhah said Dubai Next was very user-friendly and that the team behind it was supportive, giving them tips on refining their campaign to attract more donations.
“The one biggest advantage of going with Dubai Next is that they charge a much lower commission when compared to other crowdfunding platforms which was convenient for us,” said Abdul Jabbar.
The potential drawback, however, is that the platform has adopted an “all or nothing” approach, meaning that if the initiatives don’t reach the financial target they set for the campaign, they don’t get any of the funds (which would then be reimbursed to the donors).
“This, however, made us think carefully of our target for the campaign in terms of what our operational needs are, instead of setting a haphazard number,” explained Abdul Jabbar.
“We calculated the rent fees in the area we want, electricity, employees…this is what we need to start and then we are hoping the business will generate its own revenue and be self-sufficient,” she added.
From now until November 3, when the campaign ends, the three friends are working on sustaining the momentum around their campaign to reach as many potential donors as possible.
“It is kind of tricky to maintain the momentum over a long period of time, especially since at the beginning everyone is excited and wants to help but then eventually this excitement dies,” said Farhah.
“So far, we’ve reached out to our close friends and immediate family but in the days to come we will contact our distant families and their friends to widen the circle. We are also promoting the café on social media,” she continued.
In a bid to support female empowerment, Farrah said Amsay’s will employ women only. “From the technician to the head chef, we want our customers to see that we women are very capable of running businesses successfully,” she added.
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