Tag Archives: door

Furniture startups skip the showroom and go straight to your door

Holden Page Contributor Share on Twitter Holden Page is an editor and journalist at Crunchbase News . Startups making delivery and transport easier than ever are a hit with venture capitalists, so it’s not a surprise that young tech companies delivering home staples — living room sets, dining room tables, couches and more — are raising big dollars. From 2010 through 2017, venture investors have  outfitted  U.S.-based furniture startups with a little over $1.1 billion in funding across 96 known rounds. But that funding has not been spread equally over time, as the following chart shows: Total dollars funneled into U.S.-based furniture startups, according to Crunchbase, hit an all-time high of $432.7 million across 12 rounds in 2011.  Wayfair , an e-commerce site dedicated to selling furniture, raised a significant $165 million  Series A  that year, accounting for more than a third of the total deal volume. But while funding hasn’t surpassed 2011 levels, from that year through 2015, round counts steadily climbed. During this period, investments into seed and early-stage startups made up more than 70 percent of known deals. Whether or not this cohort of seed and early-stage startups will act as fodder for late-stage investors is not yet clear. Before that happens, Stephen Kuhl thinks that there’s more work to be done. Kuhl, the CEO of  Burrow , a company that sells furniture over the internet, told Crunchbase News that “selling traditional furniture made in China or Mexico isn’t innovative, and as such we wouldn’t expect to see a lot of venture funding.” But that doesn’t mean that venture interest in the sector is doomed. Kuhl added that “a new company has to offer a unique product, experience and brand that is altogether 10 times better than traditional offerings. Expect the money to follow the new brands that truly shake up the status quo.” That may bear out. The funding data we examined tells one particular story: venture money has shown a preference for delivery and a consumer that doesn’t easily call the place they live in “home.” Deliver, don’t move, furniture For city dwellers, modular, utilitarian couches are taking hold. And it’s increasingly clear you don’t have to leave your couch to purchase one.

Read More »