Total amount raised
$970 Millions
Latest funding date
9/1/2022
Location
OpenStore has successfully raised significant funding to support its mission of acquiring and operating Shopify businesses. The platform offers a streamlined process for Shopify store owners to sell their businesses quickly and efficiently.
Keep reading to explore the intricacies of OpenStore's fundraising journey and the investors backing this innovative platform.
What Is OpenStore?
OpenStore, founded in 2021, is based in Miami, Florida. The company was established by Keith Rabois and Jack Abraham.
Specializing in acquiring Shopify-based businesses, OpenStore offers a streamlined process for store owners to sell their businesses quickly and efficiently. They manage more Shopify brands than any other company, with over 2 million customers shopping across 40+ brands.
With a team of experts leveraging technology and capital, OpenStore ensures a smooth transition and continued growth for the acquired businesses. The company employs a dedicated workforce to support its operations and growth.
How Much Funding Has OpenStore Raised?
- Series A
- Amount Raised: $30M
- Date: March 2021
- Lead Investors: Khosla Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support initial growth and acquisition strategy.
- Venture Round
- Date: April 2021
- Lead Investors: Atomic
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand the company's acquisition capabilities.
- Series A
- Amount Raised: $30M
- Date: July 2021
- Lead Investors: Khosla Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and enhance technology infrastructure.
- Series B
- Amount Raised: $75M
- Date: November 2021
- Lead Investors: General Catalyst
- Valuation at Round: Approximately $776M
- Motivation Behind the Round: To scale operations and acquire more brands.
- Series B
- Amount Raised: $32M
- Date: September 2022
- Lead Investors: Lux Capital
- Valuation at Round: $970M
- Motivation Behind the Round: To grow the team and expand the portfolio of brands.
Total Amount Raised: $167M. Current Valuation: $970M.
Key Investors
- Lux Capital
- Details: Lux Capital is a venture capital firm that invests in emerging science and technology ventures. They led the recent $32 million funding round for OpenStore.
- Investment Focus Areas: Technology, science-driven companies, healthcare.
- Notable Investments: Zoox, Auris Health, Shapeways.
- Atomic
- Details: Atomic is a venture capital firm and startup studio that creates and invests in early-stage companies. Jack Abraham, founder and managing partner of Atomic, is also a co-founder of OpenStore.
- Investment Focus Areas: Early-stage companies, disruptive technologies, consumer products.
- Notable Investments: Hims & Hers, Bungalow, Homebound.
- Founders Fund
- Details: Founders Fund is a venture capital firm that invests in companies across various stages and sectors. Keith Rabois, a general partner at Founders Fund, is one of the co-founders of OpenStore.
- Investment Focus Areas: Transformative technologies, space exploration, healthcare.
- Notable Investments: SpaceX, Palantir, Airbnb.
- General Catalyst
- Details: General Catalyst is a venture capital firm that invests in early-stage and growth-stage companies. They participated in multiple funding rounds for OpenStore.
- Investment Focus Areas: Technology, healthcare, consumer products.
- Notable Investments: Stripe, Snap, Airbnb.
- Khosla Ventures
- Details: Khosla Ventures is a venture capital firm that focuses on technology startups. They have been involved in several funding rounds for OpenStore.
- Investment Focus Areas: Clean technology, information technology, healthcare.
- Notable Investments: Square, DoorDash, Impossible Foods.
What's Next for OpenStore?
OpenStore's future looks promising as it continues to acquire U.S.-based, direct-to-consumer brands with gross merchandise volumes between $1 million and $10 million. The company aims to automate the acquisition process, reducing the time to vet and make offers to as little as one hour. This efficiency, combined with a recent $32 million funding round, positions OpenStore to scale its operations and expand its team significantly.
Given the strong investor interest, future fundraising opportunities seem likely, especially as OpenStore continues to grow and innovate. However, challenges such as increased shipping costs and market competition could pose hurdles. Despite these obstacles, OpenStore's resilience and strategic focus on technology-driven retail solutions suggest a bright path ahead.
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