Crowdrooster crowdfunding platform launches with “e-commerce twist”

Globally-focused platform from Level39 Fintech accelerator to support product-led businesses

A new international crowdfunding platform, Crowdrooster, has launched today aimed at product and design-driven business ideas.

Formed out of Europe’s largest technology accelerator, Level 39, Crowdrooster will look to support start-ups that have not yet taken their products to market using its “e-commerce twist”.

Businesses will be able to use the site to raise finance by allowing the ‘crowd’ to pre-purchase their products at a competitive price. Once the funding target has been reached, these products will then be manufactured and distributed to each of the investors.

This “unique” crowdfunding model is open to businesses from across the world and has already attracted six early-stage businesses to the site, each looking to raise £135,000 in funding.

Unveiled at its launch party at Level39 last night, the founders Alessandro Rovati, Francesco Fumagalli and Francesco Gatti (pictured) suggested that the reward-based platform will “professionalise” the crowdfunding industry with a goal to becoming the “leading platform in Europe”.

The model works on an all-or-nothing basis and businesses looking to use the platform will be vetted for their feasibility internally and via online payment service MangoPay and will have to demonstrate a clear business plan.

For every successful funding round, Crowdrooster will take a commission fee of 7% + VAT.

In recent years crowdfunding has become a popular means to raise finance and the platform joins a competitive and busy marketplace with crowdfunding platform Crowdcube having raised over £15m and early-stage platform Seedrs facilitating over £1m in funding in less than a year.

Co-founder Alessandro Rovati commented on the launch: “[This is] a fully-fledged community where designers and innovators can gather to access funding, endorsement and support for their project ideas.

“In a few years’ time we want Crowdrooster to be a robust and trusted source of social capital for brands, as well as playing a vital role in delivering trend-setting and best-selling products of the future.”

Discussing the potential of the “crowdcommerce” platform, Michele Barbara, vice president of finance at JPMorgan who is backing the platform, said:

“As an alternative to traditional finance options, crowdfunding has huge potential. However, for hardware projects seeking large sums of investment, featuring alongside a mix of un-vetted personal projects has a limiting effect. Crowdrooster is tackling this obstacle head-on creating a more professional environment in which to seek investment.”

To find out more about crowdfunding, visit our dedicated crowdfunding channel.

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