SAN FRANCISCO -- Online used furniture market Move Loot says it closed on a $2.8M seed round of funding co-led by First Round Capital and Index Ventures. The San Francisco start-up says other participants include Google Ventures, SV Angel and Y Combinator.
Move Loot says it will use the funds for geographic expansion and supply chain enhancements to improve the customer experience. Bill Bobbitt, co-founder and CEO of Move Loot, says Move Loot plans to expand to at least two additional cities by the end of 2014.
"We recently moved to a new warehouse that's six times the size of our original unit because we were so capacity constrained," says Bobbitt. "There is no shortage of people looking for an easy and affordable furniture solution," said Bobbitt.
Move Loot says it hopes to change how people furnish homes and offices with its technology platform and warehousing solution to make it more convenient and less expensive to buy used furniture over new. The founders say they also hope to reduce the amount of used furniture that goes into landfills each year: 10.8 million tons.
"We knew that we could use technology to create these great local marketplaces and enable people to sell and buy perfectly good used furniture that deserves another chance," says Bobbitt. "Quality furniture holds its value surprisingly well, and we're hoping to play a part in changing consumer behavior away from the current trend of buying cheap, disposable pieces."
Sellers photograph their furniture, upload the photos to Move Loot and schedule a free pickup. Move Loot collects the furniture, cleans it if necessary, photographs it professionally, and posts it online for sale. Buyers choose what they want, pay online and schedule next-day delivery to their doorstep via Move Loot movers. Sellers get a portion of the selling price.
Josh Kopelman, partner at First Round Capital, said his firm invested in Move Loot because they'd solved the sell side of this market in a way that's innovative and comprehensive. "Most marketplaces have to manage both supply and demand -- and a lot of effort goes into keeping them in balance. Move Loot's model addresses both."
Move Loot says it is currently working on creating an expansion playbook with repeatable processes for geographic expansion. It will also invest in technology such as inventory management and scheduling optimization.
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