Online Auction Site PriceDrip.com Closes First Round of Investment
In the midst of the recession, some companies are managing to find financing from venture capital firms and angel groups. PriceDrip.com recently closed its first round of investment with 2G Associates, a Central New Jersey based angel investment group.
Monroe Township, NJ (PRWEB) July 16, 2009 -- PriceDrip (www.PriceDrip.com), America's most innovative auction site, today announced that 2G Associates has invested in the company. PriceDrip re-invented the online auction model by giving bidders the satisfaction of watching prices drop instead of go up, as in standard online auctions. This model helps consumers win brand new items at deeply discounted levels.
PriceDrip is just a few months old but already it's gaining considerable steam. The premium auction model is still in its infancy although there are already quite a few players in the space. The biggest, and most well-known, is Swoopo.com which pioneered a similar model in Germany in 2005. Since Swoopo took off in the US in 2008, there have been considerable amounts of "Swoopo clones", including Zoozle and Rockybid. Many of these sites have been gaining negative publicity in recent headlines by drawing comparisons between these models and gambling.
PriceDrip.com differentiates itself from all of the other pay-per-bid competitors in a number of ways. Perhaps the most obvious distinction is the concept of the prices actually falling as opposed to rising. "We believe that transparency is important and we want to make sure that people understand exactly how much they will pay when they win," explained PriceDrip founder and president, Shamoon Siddiqui. "There are quite a few players in this space that hook customers with the appeal of impossibly low prices but ultimately cannot deliver to the masses. We saw that as a weakness of their model and innovated." PriceDrip also keeps prices low by selling advertisements. The more people that view the advertisements, the lower the price drips and in this way, users are incentives to tell their friends about the site. "It's viral marketing at its best," remarked Siddiqui.
Jerry Rosalie and Rich Cardaci are the founding members of 2G Associates, an angel investment company located in Central New Jersey. "I had known Shamoon for a while and had been monitoring his progress," said Rosalie, "and when he told me he had started PriceDrip, I was blown away. In just a couple of months, the results were phenomenal."
Cardaci asked "Where else are you going to get brand new $2,000 computers for less than $1,000?" Cardaci noted that PriceDrip.com may not be the first to this space, but has the potential to be the biggest. "Shamoon has built a great team and has a strong track record of success," explained Cardaci, referring to Siddiqui's first startup: BookSwim.com.
About PriceDrip: PriceDrip is the first transparent pay-to-bid reverse auction website. Customers can bid on a wide range of brand new items and watch the prices constantly drop in real-time until the PriceDrip price matches their bid. Items found on http://www.PriceDrip.com are all brand-new, factory-sealed and cannot be found for less anywhere else.
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