Minimize risk, maximize return: Crowdfund Roundup’s CRCover offers safer Khwanchai Phanthong via Pexels
Startups are the lifeblood of innovation, driving advances in healthcare, technology, and other fields. In the United States alone, they are expected to create 3.7 million new jobs by 2023. Yet, despite the importance of these businesses to economic growth, investing in them has always been a risky business. 50% of startups fail within the first five years, and 65% fail after a decade, often leaving investors with little return. Unlike real estate, which offers a way to recoup investment losses, startups have no such safety net, meaning many promising companies never get the support they need to succeed.
That’s where Crowdfund Roundup (CR) steps in to change the game by minimizing risk and making startup investing more accessible and safer. “It’s no secret that startups are critical to the economy, but they also carry risk, and investors are often left with little recourse if things go south,” said CEO Adam Pressman. Together with founder/COO William C. Joyce, who has extensive experience in business development, banking, and IT, Pressman launched CRCover, a service designed to make investing safer. “We saw an opportunity to introduce a safer way to invest,” Pressman explained, “and it all started with the JOBS Act, which democratized access to early-stage investing.”
The Power of CRCover
At the heart of CR Roundup’s service is CRCover, which makes investing in startups less daunting and more secure. Principal investments are covered by a third-party insurance policy, ensuring that investors get their principal back no matter what! CR’s other tools, such as CRMonitor, further ensure that the funds provided are used appropriately. Investors’ funds are held in escrow and are only released to startups when certain milestones are met, protecting investors from unnecessary risk. If the startup fails to meet these benchmarks, investors receive their funds back, providing a safety net rarely seen in traditional investing.
Most people have heard stories of people who have made huge fortunes by getting in on the ground floor of startups. Imagine that with CRCover, you can create such stories without having to worry about losing your investment. Crowdfund Roundup is funded by the money left over from its guarantee program after all claims from failed startups have been paid. Even if up to 85% of CRCover-backed businesses fail, the money purchased from CRCover guarantees can still earn a double-digit return.
Democratizing Investing
A key feature of CRCover is its inclusivity. Whether you invest $250 or $250,000, CRCover ensures that everyone has access to the same level of protection. “It’s about leveling the playing field for everyone,” explains Joyce. “Imagine being able to protect your $100 investment with the click of a button. It’s that simple, and it opens up the world of startup investing to a much wider audience.” This focus on accessibility is what sets CRCover apart. As Joyce says, “We’ve designed a product where everyone wins, and that’s a huge differentiator. If a startup is successful, investors see a return, and if things don’t go well, they have guarantees that venture capital doesn’t typically provide.”
Crowdfund Roundup’s Revenue Streams
While investors and startups benefit from CRCover’s innovative approach, Crowdfund Roundup also generates revenue through various income streams. The company charges a 2% management fee on managed funds, a fraction of what traditional venture capital charges. They also profit from the returns on the accumulated margin. Even in the event that 85% of the insured businesses fail, the company will receive $150,000 in revenue for every $1 million invested without having to pay out cash itself.
The company is currently raising $6 million to expand operations, of which $3 million is being used to purchase policies from top insurance companies to further enhance investor protection. Investors in Crowdfund Roundup will be protected by CRCover. The remaining funds will be used to generate income and further used for interest-bearing short-term loans to ensure the success of the businesses we support, as well as for marketing expenses to obtain commitments from as many startup investment sources as possible.
A New Era for Startup Investing
With the number of startups growing and revenue models built to withstand the high failure rates common to early-stage companies, Crowdfund Roundup is reshaping the world of startup investing. “The current venture capital system often leaves too many entrepreneurs and investors stranded,” said Pressman. “CRCover gives both parties a reason to trust the process because when investors win, startups win.”
Crowdfund Roundup’s vision is not just to minimize risk, but to empower more people to support innovative ideas and help turn them into reality. As the company grows, it has the potential to change the way capital flows to startups, making the entire process safer, smarter, and more inclusive for all involved.
Learn more about CRCover today on Crowdfund Roundup’s service website, Syndicate Path, including our AI chat assistant.