Finding the money for the down payment on a car or a home is never as easy as it sounds. It's a challenge one Detroit-based startup is turning into a business.
BoostUp provides an online platform that helps users to save up enough money for the down payment on the house or car of their dreams. The platform lets the user tell their family and friends about their goal through social media and gives them an option for people to donate toward that cause in the form of birthday or holiday gifts.
"We have recently put the emphasis on cars and homes," says John Morgan, founder & president of
BoostUp. "We are focused on the downpayment phase."
The 1-year-old company spun out of
Synergy Marketing Partners and was originally named Motozuma. It scored an angel investment from Detroit Venture Partners, which prompted it to move from Chicago to the M@dison Building. It is working with a number of large corporations, such as Hyundai and Quicken Loans.
BoostUp currently has 40,000 users. They spend about 4-6 months saving for vehicles and 6-12 months saving for homes. Morgan hopes to scale those numbers significantly over the next year hitting six-figures of users.
"We think a goal-based interface is important for consumers," Morgan says.
BoostUp currently employs a staff of six full-time employees and another three part-timers. It has hired four people over the last 12 months, including positions in marketing, sales and customer support.
Source: John Morgan, founder & president of BoostUp
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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