Burrow, a startup that first launched with a modular sofa, eventually aims to sell you furniture for every room in your home. Today, it’s announcing that it’s raised $25 million in Series C funding.
Burrow participated in the Y Combinator accelerator in 2016 with an initial aim of building sofas that, by virtue of being modular, were easier to move and adapt to a variety of living spaces. Now its product lineup also includes armchairs, ottomans, tables, rugs, lights and other accessories. In fact, the company says it launched 19 new products last year, including a modular shelving system.
When I asked via email about this expansion, co-founder and CEO Stephen Kuhl told me that the company follows “a very rigorous research process” involving customer surveys, focus groups, online search data and more.
“The goal is to match the largest customer needs with the biggest market opportunities,” Kuhl said. “Once it’s clear what category to enter, we use our research to define how we’re going to develop the best version(s) of each product for our customer base, and how we’re going to build the best end-to-end customer experience around that product. I’m probably going to jinx it, but every single product we’ve ever launched has exceeded projections, a testament to our customer-centric, research-driven design process.”
Burrow says it saw triple-digit revenue growth last year, a trend it anticipates continuing in 2021. Kuhl suggested that the startup is also benefitting from broader trends accelerated during the pandemic, including the shift to e-commerce, an increased focus on the home and people moving to the suburbs (and buying more furniture in the process).
“Over the last 18 months, we launched innovative new products in every category of living room furniture,” he said. “In 2021, we’ll continue that expansion into every room of the home.”
The startup has now raised a total fo $55 million. Its Series C was led by Parkway Venture Capital, with Managing Partner Gregg Hill joining Burrow’s board of directors. NEA, Red & Blue Ventures, Winklevoss Capital and Michael Seibel also participated in the new round.
Burrow says it will use the new funding to launch new products while also investing in operations and building out its international supply chain.
“Parkway looks for brands that are changing how we live today as well as innovating to stay ahead,” Hill said in a statement. “We believed in Burrow’s business model from the beginning, having invested in their Series B round, and recognize all their future potential.”
https://ift.tt/eA8V8J Furniture startup Burrow raises $25M https://ift.tt/3bAlvlV
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