At a Glance
co-op has raised $5.8M in seed round funding to scale its platform. Sugar Capital led the round, with participation from angel investors and the company looks to scale its platform and expand its team size.
San Francisco-based co-op, announced its close of seed funding round, where it raised $5.8 million led by Sugar Capital. Shopify, Bessemer Venture Partners, Indicator Ventures and RiverPark Ventures participated in the round.
In an official announcement on its website, co-op stated that it would look to scale its platform and help merchants partner together in acquiring customers. The company would continue creating an ecosystem of brands and blitz the market with innovative product launches. The proceeds from the funding would allow co-op to expand its remotely distributed ten-person team to around 25 by the end of 2021.
The company re-imagines commerce and acquisition via collaboration by creating a new channel and merchandising network to help independent merchants work together to drive sustainable growth outside of the Facebook, Amazon, and Google space.
The round witnessed participation from angel investors such as Roth Martin of Rothy’s, Andy Dunn of Bonobos, Nate Checketts of Rhone, Jai Jung Kim of Hydrant, Sandy Cass of Red Swan Ventures, Cory Moelis of GroundUp Ventures, Ben Jabbawy of Privy, among many others.
Conner Sherline, founder and CEO of co-op commerce, stressed that brands are entirely reliant on Facebook and Instagram to provide them with new customers. As costs have increased and more roadblocks have been put into place on targeting, every brand is looking for different ways to drive growth, he opined.
“A new platform and channel needed to emerge that could leverage owned channels and direct customer relationships,”Mr. Sherline added.
Commenting on the investment, Brian Sugar, managing partner at Sugar Capital, expressed delight at leading the next round of funding for co-op’s journey. Lauding co-op’s platform, he said,
“It’s never been easier to start a new brand, yet with new lowered barriers to entry, it’s never been more challenging to scale. With prices rapidly increasing in digital advertising platforms, co-op is providing a real media diversification strategy by unlocking an entirely new channel, powered by partnerships, to grow.”Brian Sugar, managing partner at Sugar Capital