AptDeco
YC-backed resale-as-a-service platform for the $58B furniture market - Closing Soon!!
Last Funded May 2025
$5,858,080
raised from 1,406 investors
Investment Terms
You will be investing in AptDeco through an SPV. This means that when you invest, you will be signing the SPV Subscription Agreement, not the direct investment contract. For more information on SPVs, see here.
Financials
We have financial statements ending December 31, 2023. Our cash in hand is $450,000, as of July 2024. Over the three months prior, revenues averaged $489,000/month, cost of goods sold has averaged $98,000/month, and operational expenses have averaged $375,000/month.
At a Glance
Jan 1 – Dec 31, 2023
$6,542,793
Revenue
+46%
-$3,586,390
Net Loss
$2,592,031
Short-Term Debt
+119%
$1,351,868
Raised in 2023
$450,000
Cash on Hand
+46%
Net Margin:
-55%
Gross Margin:
49%
Return on Assets:
-143%
Earnings per Share:
-$0.16
Revenue per Employee:
$136,308.19
Cash to Assets:
2%
Revenue to Receivables:
4,865%
Debt Ratio:
593%
2023-2022 AptDeco Inc. Audit final v1.1 .pdf
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
AptDeco, Inc. is the leading furniture-specific resale marketplace for buying and selling online.
AptDeco Inc. is an online marketplace for buying and selling pre-owned furniture, offering a convenient platform with delivery services included.
Milestones
AptDeco was formed in Delaware on February 28, 2013 under the name AptDeco, LLC. On December 12, 2013 the Company filed a certificate of conversion from a limited liability company to a corporation: the name of the corporation is AptDeco, Inc.
Since then, we have:
To-date, the company has been financed with $2,414,000 in debt, $6,959,812 in equity, $10,260,368 in convertibles, and $655,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 36 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
AptDeco, Inc. cash in hand is $450,000 as of July 2024. Over the last three months, revenues have averaged $489,000/month, cost of goods sold has averaged $98,000/month, and operational expenses have averaged $375,000/month, for an average net margin of $16,000 per month. Our intent is to be profitable in 2 months.
Since the date our financials cover, the business has been trending positively. We've significantly reduced our burn since the 2022–2023 period.
We expect our revenue to average $700K a month over the next 6 months and our total expenses (including COGs) to equal $700K a month as well.
We are not profitable yet, but we expect to be profitable by 2025.
Besides funds raised through Wefunder, we've raised capital from venture capital investors as well as a venture debt loan.
All projections in the above narrative are forward-looking and not guaranteed.
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
AptDeco, Inc. is the leading furniture-specific resale marketplace for buying and selling online.
AptDeco Inc. is an online marketplace for buying and selling pre-owned furniture, offering a convenient platform with delivery services included.
Milestones
AptDeco was formed in Delaware on February 28, 2013 under the name AptDeco, LLC. On December 12, 2013 the Company filed a certificate of conversion from a limited liability company to a corporation: the name of the corporation is AptDeco, Inc.
Since then, we have:
- $84M furniture gross merchandise volume (GMV) & $31M revenue
- 500K+ users & 200+ retail stores including West Elm, Pottery Barn, Article, IKEA, and Room & Board
- 62% profit margin & net promoter score (NPS) of 58
- 33M pounds of furniture diverted from landfills
- New York Times, Good Morning America, Architectural Digest, and TechCrunch features
- Led by ex-Goldman Sachs, L’Oreal, and Amazon executives
- Backed by venture investors including Y Combinator and Initialized Capital
- Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $6,542,793 compared to the year ended December 31, 2022, when the Company had revenues of $4,470,846. Our gross margin was 49.45% in fiscal year 2023, compared to 29.28% in 2022.
- Assets. As of December 31, 2023, the Company had total assets of $2,511,115, including $42,290 in cash. As of December 31, 2022, the Company had $2,912,018 in total assets, including $616,138 in cash.
- Net Loss. The Company has had net losses of $3,586,390 and net losses of $5,005,911 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
- Liabilities. The Company's liabilities totaled $14,883,009 for the fiscal year ended December 31, 2023 and $11,743,730 for the fiscal year ended December 31, 2022.
To-date, the company has been financed with $2,414,000 in debt, $6,959,812 in equity, $10,260,368 in convertibles, and $655,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 36 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
AptDeco, Inc. cash in hand is $450,000 as of July 2024. Over the last three months, revenues have averaged $489,000/month, cost of goods sold has averaged $98,000/month, and operational expenses have averaged $375,000/month, for an average net margin of $16,000 per month. Our intent is to be profitable in 2 months.
Since the date our financials cover, the business has been trending positively. We've significantly reduced our burn since the 2022–2023 period.
We expect our revenue to average $700K a month over the next 6 months and our total expenses (including COGs) to equal $700K a month as well.
We are not profitable yet, but we expect to be profitable by 2025.
Besides funds raised through Wefunder, we've raised capital from venture capital investors as well as a venture debt loan.
All projections in the above narrative are forward-looking and not guaranteed.
Risks
1
Dependence on individuals and businesses listing furniture on the platform: The platform's success depends on the need for people to sell furniture. The company has no control over the availability and quality of the products listed on its platform. The platform may suffer if there are not enough people or businesses that need to sell furniture.
2
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
3
Shipping risks: The platform provides shipping services for the products sold on its platform. Any disruption in the shipping infrastructure, such as delays or damages during transit, could impact the platform's ability to fulfill orders on time and could result in customer dissatisfaction.
Other Disclosures
The Board of Directors
| Director | Occupation | Joined |
|---|---|---|
| Kalam Dennis | CRO @ AptDeco | 2013 |
| Reham Fagiri | CEO @ AptDeco | 2014 |
Officers
| Officer | Title | Joined |
|---|---|---|
| Kalam Dennis | CRO | 2013 |
| Reham Fagiri | CEO | 2014 |
Voting Power
No one has over 20% voting power.
Past Fundraises
| Date | Security | Amount |
|---|---|---|
| Convertible Note | $773,843 | |
| 2/2024 | Loan | $1,400,000 |
| 1/2024 | Convertible Note | $1,710,000 |
| 11/2023 | Loan | $100,000 |
| 11/2023 | Loan | $200,000 |
| 7/2023 | Loan | $250,000 |
| 5/2023 | Convertible Note | $401,868 |
| 3/2023 | Convertible Note | $400,000 |
| 12/2022 | Loan | $250,000 |
| 3/2022 | Convertible Note | $2,500,000 |
| 12/2021 | Convertible Note | $2,500,000 |
| 6/2020 | Convertible Note | $3,758,500 |
| 4/2020 | Loan | $214,000 |
| 4/2019 | Priced Round | $3,525,551 |
| 10/2017 | Priced Round | $3,434,261 |
| 8/2016 | SAFE | $655,000 |
Convertible Notes Outstanding
| Issued | Amount | Valuation Cap | Maturity |
| 6/12/20 |
$3,758,500
|
$22,000,000 | 12/31/24 |
| 12/14/21 |
$2,500,000
|
$40,000,000 | 12/30/24 |
| 3/15/22 |
$2,500,000
|
$40,000,000 | 12/31/24 |
| 3/1/23 |
$400,000
|
$40,000,000 | 12/31/24 |
| 1/10/24 |
$1,710,000
|
$40,000,000 | 12/31/24 |
Outstanding Debts
| Issued | Lender | Outstanding | Maturity |
|---|---|---|---|
| 2/19/24 | Prospeq LP |
$1,720,000
|
2/1/27 |
Related Party Transactions
Use of Funds
| $50,000 | 95% Technology R&D (salaries of engineering and product teams)5% Wefunder Fees |
|---|---|
| $618,000 | 35% Technology & product development30% Sales and Marketing30% Operational / Logistics- Admin, Legal5% Wefunder Fees. |
| $5,000,000 | 35% Technology & product development 30% Sales and Marketing 30% Operational / Logistics- Admin, Legal 5% Wefunder Fees. Raising our maximum target will help us continue to invest in growing the business - tech investments, hiring key team members, growing our national presence, etc. If we raise the minimum, we will mostly be maintaining our current operations. |
Capital Structure
| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
|---|---|---|---|
| Common Stock | 24,914,900 | 10,455,422 | Yes |
| Series A Preferred Stock | 12,031,465 | 11,929,475 | Yes |
Form C Filing on EDGAR
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.