Total amount raised
$79.4 Millions
Latest funding date
2/1/2021
Location
Lob has successfully raised significant funding across multiple rounds, attracting a diverse group of investors including Indicator Ventures and Y Combinator Continuity Fund. The platform specializes in automated direct mail marketing, offering businesses the ability to personalize, scale, and measure their direct mail campaigns with ease.
Keep reading to explore the intricacies of Lob's fundraising journey and the investors backing this innovative platform.
What Is Lob?
Lob, founded in 2013 by Harry Zhang and Leore Avidar, is headquartered in San Francisco, California. The company specializes in providing direct mail and address verification APIs, enabling businesses to send personalized mail to their customers efficiently.
With a workforce of 251-500 employees, Lob automates direct mail for modern businesses, helping them save time and improve data quality. Over 7,000 companies utilize Lob’s APIs to streamline their mail processes and drive growth.
By integrating with digital tools, Lob's platform allows businesses to create, send, and measure direct mail campaigns, offering a comprehensive solution for automated direct mail marketing.
How Much Funding Has Lob Raised?
- Seed Round
- Amount Raised: $2.4M
- Date: November 4, 2013
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial product and gain early traction in the market.
- Convertible Note
- Amount Raised: Not publicly disclosed
- Date: August 19, 2013
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide additional working capital for product development.
- Series A
- Amount Raised: $7M
- Date: September 8, 2014
- Lead Investors: Polaris Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and expand the customer base.
- Series B
- Amount Raised: $22.9M
- Date: May 31, 2017
- Lead Investors: Y Combinator Continuity Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance the platform's capabilities and expand market reach.
- Series C
- Amount Raised: $50M
- Date: February 25, 2021
- Lead Investors: Y Combinator Continuity Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand operations, scale the print delivery network, and increase headcount.
Total Amount Raised: $82.3M. Current Valuation: Not publicly disclosed.
Key Investors
- Y Combinator Continuity Fund
- Details: Y Combinator Continuity Fund is a growth-stage investment fund that is part of Y Combinator, a renowned startup accelerator. The fund focuses on supporting companies that have previously gone through the Y Combinator program and are in their growth stages.
- Investment Focus Areas: Growth-stage investments, technology, startups.
- Notable Investments: Airbnb, Dropbox, Stripe.
- Polaris Partners
- Details: Polaris Partners is a venture capital firm that invests in technology and healthcare companies. They have been active for over 20 years, supporting entrepreneurs from seed to growth stages.
- Investment Focus Areas: Technology, healthcare, software.
- Notable Investments: Akamai Technologies, LogMeIn, Markforged.
- First Round Capital
- Details: First Round Capital is an early-stage venture capital firm that focuses on technology startups. They are known for their hands-on approach and extensive network to support founders.
- Investment Focus Areas: Technology, consumer internet, enterprise software.
- Notable Investments: Uber, Square, Warby Parker.
- Floodgate
- Details: Floodgate is a venture capital firm that invests in early-stage technology companies. They focus on transformative startups that have the potential to create new markets.
- Investment Focus Areas: Technology, consumer internet, enterprise software.
- Notable Investments: Twitter, Lyft, Okta.
- Indicator Ventures
- Details: Indicator Ventures is a venture capital firm that invests in early-stage technology companies. They focus on digital platforms that improve the way people live and work.
- Investment Focus Areas: Digital platforms, technology, SaaS.
- Notable Investments: Not publicly disclosed.
What's Next for Lob?
With $50 million in Series C funding, Lob is poised to expand its print delivery network and scale operations significantly. The opportunity to reach one in two U.S. households and serve over 8,500 companies, including major names like Twitter and Expedia, underscores the vast potential for growth. By modernizing direct mail processes and integrating with CRM systems, Lob can further enhance its market reach.
Future fundraising rounds seem likely as Lob continues to grow, potentially leading to acquisitions that could bolster its technological capabilities. However, challenges such as maintaining service quality while scaling and staying ahead of competitors will require strategic focus and innovation.
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