DIGITAL MAGICS INVESTS IN DEREV, THE INNOVATIVE CROWDFUNDING STARTUP
The venture incubator acquires a 17,5% market share of the main crowdfunding platform in Italy
Thanks to Digital Magics’ support, DeRev will consolidate its leadership in Italy, focusing on civic crowdfunding and the engagement of public authorities and citizens and establishing its presence in the European marketÂ
This is the second investment for the Italian startup, after receiving a funding of € 1,25 million in 2012 by Vertis Venture and Withfounders
Milan, 20 March 2014 – Digital Magics, certified incubator of innovative startups, listed on the AIM Market of the Italian Stock Exchange (symbol: DM), has purchased a market share of approximately 17,5% of DeRev, the main Italian crowdfunding platform, adding the startup to its portfolio.
Following this operation, DeRev – which has recently released a new on line design for its campaign – launches a new business model based on civic crowdfunding. It aims at becoming the first Italian startup to offer a structured and “revolutionary†solution to public authorities, associations, non-profit organizations, creative or innovative projects (arts and culture, startups, events).
Starting today – on www.derev.com – public administrations (districts, regions and other public authorities) can launch crowdfunding campaigns to support projects and activities of public interest, such as the renovation of monuments and public areas, the implementation of initiatives or city events, and the development of innovative services for public transports and improving the quality of life.
The goal is to turn crowdfunding into social commitment: the whole community shares the will to improve their own environment and city. Civic crowdfunding can step in when local administration fails to solve problems on its own, activating a virtuous and ethical process involving municipalities, regional departments and public authorities. The fundraising campaign launched by DeRev to rebuild Naples Città della Scienza – destroyed by a fire on 4 March, 2013 – shows the huge potential of crowdfunding initiatives promoted by the citizens, confirming itself as the most successful crowdfunding campaign ever realized in Italy, supported by more than 2,000 people and € 1,073,000 raised.
DeRev consolidates its position in the Italian market by opening a new office at Digital Magics’ headquarters in Milan. Thanks to the certified incubator’s support – in addition to its network of Italian and international connections – DeRev team aims to improve the development of its platform, implementing innovative tools for online payment and new functions for mobile, making it more competitive before its launch on the European market. Today DeRev counts more than 5 million registered users on its social networks and more than 15,000 active users contributing to fundraising campaigns.
Digital Magics participation in DeRev consolidates the collaboration between the incubator and Withfounders, which have joined forces to increase the growth of the startup and reach the ambitious goal to establish its presence in the European crowdfunding market.
In 2012, DeRev received a first investment of € 1,25 million – one of the biggest early stage operations for a digital startup in Italy – from Vertis Venture (a venture capital managed by Vertis SGR and independent asset management company) and Withfounders (an Italian investment company which funded successful enterprises and startups, such as Buongiorno Vitaminic, SaldiPrivati, Jobrapido and Glamoo). The two ventures have renewed their trust in DeRev, based on its achievements and promising growth potential.
Roberto Esposito, Founder and CEO of DeRev: “We are satisfied by this investment, which marks an important stage for our startup. It opens important perspectives of growth and development for DeRev, and testifies that we have done a good job. Thanks to the support of an incubator as important as Digital Magics, our platform will consolidate its role as the leading crowdfunding platform in Italy and further establish its presence in the European market, offering an increasingly effective and innovative tool to fund and carry out the best ideasâ€.
Enrico Gasperini, Founder and President of Digital Magics: “Communities have always helped themselves with crowdfunding, even if in the past it was not called this way. Two famous examples are Duomo of Milan and the pedestal of the Statue of Liberty. It is a very interesting and highly scalable business model that we are willing to invest in. We chose DeRev because it is an innovative startup that, thanks to its experience and achievements, has the right potential to become a  successful disruptive business worldwide.â€
THE CROWDFUNDING MARKET
According to the Massolution Report 2013 – the Crowdfunding Industry in 2012 grew globally by 81%, reaching $ 2,7 million, with $ 1 million successfully funded campaigns. A doubling up of global volume was expected for 2013, reaching $ 5,1 million – an amount already reached by July 2013.
In Europe, the growth of crowdfunding is certified at 65%, with a profit of $ 945 million, as reported by statistical surveys two years ago. Most of the crowdfunding traffic originates in Western Europe, with some countries having the largest rate of collection: United Kingdom (63%), followed by Germany, Poland, France, Italy and Spain.
DeRev – www.derev.com
DeRev is an innovative startup, funded in 2012 by Roberto Esposito, leader of the Italian crowdfunding market. On 3 August 2012, DeRev closed one of the most relevant early stage operations ever made in Italy, receiving a € 1,25 million investment by Vertis Venture and Withfounders. The startup operates in Naples and Milan and employs 10 young talents. With more than 5 million Italian users registered to its social networking pages, DeRev crowdfunding campaigns have raised over € 1,300,000, with more than 15,000 persons offering financial support to cultural, political, entrepreneurial and charity projects. DeRev has established a national and international network of relations that involves public institutions, political parties, Italian and international companies, cultural bodies, non-profit organizations, universities and incubators. In June 2013, the European Parliament and Microsoft listed DeRev among the Digital Democracy Leaders.
Digital Magics – www.digitalmagics.com
Digital Magics is a certified venture incubator of innovative startups, offering content and services with high technological value. Digital Magics is quoted on the Italian AIM , the Alternative Capital Market dedicated to small and medium-sized Italian companies with high growth potential, organized and managed by the Italian Stock Exchange. Digital Magics builds and develops internet startup, co-operating with the founders , investing equity and providing acceleration services. It starts with talents and ideas , transforming them into successful disruptive businesses in the Italian and international digital economy. The incubator promotes a culture of entrepreneurship and risk, contributing to economic growth and the employment for young people. Digital Magics provides the services to support innovation, creation and the development of digital startups, and help them to look for new private and public investors in Italy and abroad that would fund the next phases of development. Digital Magics model is unique in Italy and is based on the Digital Magics LAB : the team spots, analyzes and launches new initiatives, providing innovative startups with mentorship, financial, administrative, strategic, logistical, technological and marketing communications help, as well as with business management support to accelerate company growth.
For further information:
Digital Magics – Press Office
Giorgio Bocchieri – Mail: giorgio.bocchieri@digitalmagics.com
Phone 02 52505202 – Mob. 334 6853078
DeRev – Press Office
Mail: contact@derev.com
