From Home Furnishing Business
Liquidity Capital Invests $12.5 Million in E-Commerce Startup Resident
Resident, the direct-to-consumer e-commerce startup that owns and operates a house of consumer furnishing brands including: Nectar, DreamCloud, Level, Awara, Wovenly, Bundle and 1771 Living, has recently received a $12.5 million investment from Liquidity Capital.
Liquidity Capital offers tech startups and SaaS providers a funding alternative, enabling them to double down on their hyper-growth without giving up equity. The company’s trajectory-based financing model allows Liquidity Capital to work with startups side-by-side, taking on all financial risk. Powered by machine learning algorithms which forecast the future business trends of its investments, Liquidity Capital provides unlimited non-secured loans.
"We are thrilled to be investing in Resident," said Ron Daniel, co-founder and CEO, Liquidity. "Seeing as Resident is the fastest growing e-commerce retailer in North America, this investment strengthens our investment portfolio greatly. We are happy to be doubling down on e-commerce, pairing Resident with our investment in Le Tote, a leader in e-commerce fashion retail. We're excited to watch the continued hyper-growth of Resident and give then any support needed along the way."
Beginning as an online retailer for high-quality, affordable memory foam mattresses, Resident continues to grow their direct-to-consumer sales, expanding their range to rugs, couches, chairs and bean bags for homes everywhere. The company currently operates in San Francisco, New York City and Tel Aviv.
"We have been extremely impressed with the Liquidity Capital team from our very first meeting with them," said Ran Reske, Co-CEO, Resident. "Ron Daniel clearly understands all the ups and downs an entrepreneur goes through, as he has already experienced this journey himself. The fact that they have been entrepreneurs was very important to us in choosing a capital partner. In addition, the new approach of non-dilutive capital for a fast-growing business like ours is the perfect solution and made this transaction a no-brainer for us. We look forward to working with Liquidity Capital as we continue to scale our business."
Liquidity Capital funds tech startups and SaaS providers that demonstrate over $5M in ARR and 30% year-over- year growth, with an average ticket size of $10M-$30M. Founded by serial entrepreneurs and with offices in New York, Miamiand Tel Aviv, Liquidity Capital is backed by Mitsubishi UFJ Fund Services and is part of Meitav Dash Ltd., the leading Israeli institutional investment house. Liquidity Capital has already committed over $200M of growth capital in 2019 and plans to fund over $500M in the U.S. market for 2020. Notable investments made by Liquidity Capital include Le Tote, Infinidat, ezbob, and Sweet Inn.