Crowdfox, a German startup that wants to compete with Amazon, has raised a 5 million euros seed round from private investors. But the startup gets more than only fresh capital. The experience and network of the investing partners give Crowdfox some advantages with scaling the company; for the end of 2016 it has planned an international market entry.
The fresh capital is described as “more than just an investment” on Startup Valley News. It’s seed funding with network effects. “The profound industry experience and the networks of our partners, offer Crowdfox not only in the German market a unique opportunity, but give us also a decisive advantage when we want to scale the company”, says Wolfgang Lang, founder and CEO of Crowdfox.
According to EU-Startups, international venture capitals and strategic investors have showed interest in the technology and the business model of the company. These investors will receive their chance to invest into the tech startup with the upcoming Series A financing round in late summer 2016.
Crowdfox is a combination of a private shopping club, a price search engine and an ecommerce platform. The startup, founded in 2013 and online since December 2015, has approximately 1,000 attached dealers, who don’t have to pay a fee to have their products listed on the site. Retailers only pay about two percent of the purchase value. As a result, goods can be offered for about ten percent cheaper compared to the same products listed on Amazon, Crowdfox claims. The company expects a turnover of 50 million euros in 2016.