Question 1

What is the exit strategy?

Accepted Answer

Thank you so much for the question! Our vision is to be acquired by a strategic buyer. Companies buy startups because they solve a problem for them. Amazon has the most robust ecommerce operation on the planet. The company is constantly seeking and acquiring its way to the next untapped frontier, whether it be shoes, diapers, grocery stores, or furniture. https://www.nytimes.com/2017/03/25/technology/amazon-wants-to-crush-your-store-with-its-technology-might.html Local is an integral part of ...

Question 2

Since you've had three previous priced rounds, why use a SAFE this time rather than another priced round? Also, are you using the new dividend/profitability trigger Wefunder recently introduced to their standard SAFEs?

Accepted Answer

Thanks for the question! We had two prior priced “Series Seed” rounds. These were traditional rounds with accredited angel investors. The reason we went with a SAFE for this round is that we want to keep the option open for a traditional VC round in the future. Sometimes having a very busy cap table with lots of smaller investors can be a detriment to an institutional process. We are using the traditional WeFunder SAFE format. The SAFE feels like a great instrument to allow smaller investors ...

Question 3

When is the fundraising cutoff date?

Accepted Answer

We have not yet established a firm cut off date. It's expected to be early 2018.

Question 4

Hi Chris! Interesting business but I have a few questions. [1] How do the unit economics look like? For something like vintage furniture, how do you ascertain the value to both pay and later sell it on? [2] For the vintage furniture you acquire, do you typically have to spend ...

Accepted Answer

Thanks for the questions, Edwin! [1] The unit economics are great. Our average sale price is around $185 (after discounts and markdowns) and our average purchase price is around $55. Our product margin has been consistent at about 70%. We have been selling thousands of items monthly, so we have a large data set of types of furniture, brands and condition. From this data set we are able to estimate appropriate purchase price and sale price. Additionally, we have buyers who are experts in appra...

Question 5

Hi Chris, Do you have a current eComm Warehouse Management Software (WMS) solution in place to sell one of a kind furniture? Do you even need one? How do you keep from overselling the single item (SKU) if you're offering it on your Loveseat site, eBay, Amazon, Houzz, Wayfair, ...

Accepted Answer

Hi Bob, Our warehouse management system was purpose-built in house. The system has native mobile components as well as web components used by all levels of our staff (buyers, road team, warehouse team, etc.). It contains inventory data (price, location, age, etc.) as well as work queues for all levels of our staff. This reduces our management overhead as most tasks are queued by the platform itself. This all syncs up with our customer-facing ecommerce website. Behind the scenes, the website h...

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