The innovative model is the product of Europe’s largest technology accelerator – Level 39. Crowdrooster will support start-ups that have not yet taken their products to market.
Prospective businesses will raise funds through the site by allowing people to pre-purchase their products at a competitive price. Those products will then be manufactured and distributed once the start-up’s fundraising goal has been reached.
Reaction
Founders Alessandro Rovati, Francesco Fumagalli and Francesco Gatti hope the reward-based platform will “professionalise” the crowdfunding industry. They envisage Crowdrooster becoming the “leading platform in Europe”.
Early signs have been positive, the platform already having drawn the interest of six early-stage projects – each hoping to raise £135,000 in funding. These include the handcrafted furniture company Experience de Vita, and fresh designs from custom Italian skateboard brand Atypical.
Rotavi called the platform “a fully-fledged community where designers and innovators can gather to access funding, endorsement and support for their project ideas”.
Michele Barbara, vice president of finance at JP Morgan (who are backing the new platform), said the following. “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”.
How it works
Crowdrooster employ an all-or-nothing model so purchasers funds will only be extracted if a project reaches its target. The platform are selective about which businesses they feature. Start-ups will need to be able to demonstrate a clear and viable business plan.
Crowdrooster take a commission fee of 7% + VAT for each successful round of funding.
