Charitystars’s U.S. Success Story

How this SMB from Italy in the Information Technology and Services industry made it in the U.S.A

Country Of Origin Italy

U.S. HQ. Los Angeles, USA

Industry Information Technology and Services

Year Founded 2011

Number Of Employees 50-60

Annual revenue $2.6M

 

About Charitystars

CharityStars was co-founded in 2013 by Francesco Nazari Fusetti, Manuela Ravalli, and Domenico Gravagno. The startup is the leading online fundraising auction platform for the nonprofit sector. From the time it was established, the company has been able to leverage the power of celebrity, technology, and the media. The company aims to help charities around the world in changing to digital fundraising. Ideally, the company specializes in auctioning unique celebrity experiences and rare collectibles.

Expanding to the USA

 

CharityStars have its headquarters in Los Angeles. Moreover, it has offices in London and Milan. The company conducts auctions through the online platform. The platform features an array of luxury experiences or products with proceeds going to partnering charities. In 2015, the company confirmed to have obtained sufficient funds to expand their market coverage to the US.

In its expansion plan, the company landed in the US and strategically placed the company’s headquarters in Los Angeles. Over the recent past, the company has confirmed to operate in a growing global market worth $15 billion dollars in the US alone. As of 2016, CharityStars obtained funds to launch in China where the auction platform is already seeing traction.

The company verified that the company has already launched the Chinese version of the site. That was in a statement made by CharityStars co-founder Francesco Nazzari Fusetti some years ago. The expansion to China comes just after the establishment of the US subsidiary office. Initially, the company would operate with the London and Milan offices.

Presently, CharityStars claims to have collaborated with over 400 nonprofit organizations. Notably, these organizations each hold an average of 10 charity auctions per year. In 2016, the company stated categorically their main goal was to reach 2,000 charity partners by December 2018. Expansion the US market would be utilized to gain more customers and make the 2,000 charity partners goal achievable. Another interesting metric is the average auction sale price that currently stands at €500. CharityStars aimed to double this within two years of settling in the US market.

In the US, for instance, the startup charges a 20 percent commission per auction. That is in stark contrast to eBay’s free listings for charities. Thus, CharityStars generates more revenue when an item is more expensive.

Nazari Fusetti stated that most charities in the US have always used eBay to sell items. However, the auctions are spread into millions of other auctions and they all have lost their uniqueness. Luckily, the expansion to the US saw the company create a specific platform where VIPs, companies, and users come together for the greater good. Even more, the CharityStars designed their platform to bridge the gap between in-person charity actions and online bidding. As it is now, online users can simultaneously bid against guests during auction events.

With the US expansion, CharityStars have recently opened up the auction platform beyond nonprofit organizations to private individuals. These individuals may be people who want to auction off items and give a percentage of the proceeds to charity. The company is leading the sector by integrating its overall vision to assist US charities in their transition to digital fundraising.

Financing the Company

 

CharityStars ended the first quarter of 2016 with positive growth.  The company saw a 120% growth in funds raised from charity auctions compared to the previous year. In 2015, the company accomplished €1,800,000 of online sales within their three markets, Italy, USA, and England. The most prominent auctions from 2015 were a power-lunch with the founder of Candy Crush, Riccardo Zacconi that sold for €25,000. Besides the company also conducted an auction for artwork by Andy Warhol that went for €27,000. In the same year, CharityStars also auctioned the Valentino Rossi signed a helmet for €15,000 and a Barcelona football shirt with a personalized dedication from Lionel Messi sold for €11,000.

CharityStars raised a €2 Million series A round to expand its operations in key global markets. Venture capitalist firm 360 Capital Partners, A.S. Roma football player Stephan El Sharaawy, and LastMinute Group CEO Fabio Cannavale, led the funding. These funds were specifically meant to fund the US and China expansions.

To date, CharityStars has raised over $10 million in funds and supported over 450 charities including UNICEF, Save the Children, and WWF. In addition, CharityStars has worked with over 1,000 celebrities and brand partners including Valentino Rossi, Andy Murray, James Blunt, Vivienne Westwood, Vanity Fair, and Redbull.

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