Tech start-up Scrap Connection is set to disrupt the recycling industry on the back of a highly successful crowdfunding campaign, raising over US$ 340,000 so far.
Scrap Connection is expanding their online platform to transform the global $250billion/yr scrap industry by reducing trading risks for companies that buy, sell and broker scrap materials.
A full 80% of scrap traders say it’s difficult to find trustworthy trading partners”.“Scrap companies lose over $200 million a year because of fraud, contract cancellations, and material quality issues. These losses are unnecessary, but there’s currently no way to avoid them entirely. Our upcoming business intelligence product will massively reduce risk of losses, while at the same time improving accountability in the market.
Scrap Connection wants to take the guesswork out of scrap transactions and replace it with transparency and hard data. Just as a supplier checks a Dun and Bradstreet credit report about a buyer before making a large purchase, companies will check a Scrap Connection business intelligence report before signing or even negotiating a scrap deal.
The report would give them critical information on whether the other company consistently meets the terms of contracts, whether it pays on time, whether it ships on time, whether it reports its material quality accurately, and its import/export history.
The company’s growth potential was recently highlighted in a glowing review from First Stage Investor, prompting hundreds of the investment firm’s members to join scrap industry professionals in funding the beginning of a fundamental change in process for scrap trading. Stratifund.com has also placed the company in the top 10% of all equity-based crowdfunding campaigns, based on investment potential.
Crowdfunding is not just for consumer products anymore: equity-based crowdfunding has recently become a viable funding method, with changes in law in a number of countries opening up investment to everybody, not just professional investors. Now, any individual or company that believes in a product can invest to support development and enjoy the profits from the growth of the business.
Scrap Connection is hosting their crowdfunding campaign on Wefunder.
Scrap Connection is a web-based platform for buyers, sellers and brokers of scrap materials to manage trade, form and maintain business relationships, and access in-depth market data. Their center of operations is in Amsterdam, Netherlands, with offices in India and Pakistan.