Storefront, a startup that which establishes small shops and other stores for a common man raises $1.6M in the seed round. This round of funding was led by Mohr Davidov Ventures, Great Oak Venture Capital, 500 Startups, Box Group and Sand Hill Angels as reported by Coleen Taylor of TechCrunch.
This round of funding will be put to use, to build new ‘pop-up’ shops beyond San Francisco. The recent launch is in the New York City. The company also plans to expand the manpower as it is currently a six member team; therefore more hires are expected shortly.
Storefront is a marketplace for companies; which don’t have any place for establishing a company, due to high prices in the real estate market and extensive brokerage fees. The aim of the company is to connect founders, in an offline market as easily as the online space. The company does not charge anything as rental fee; but they earn revenue by collection of ‘referral fee’ as companies need some equipments after they move into the company. These include furniture sales, temporary staff or immediate needs of the company who have moved in and insurance for the company etc.They don’t have much of competition in the market currently, because real estate owner’s brokers don’t earn a huge sum from the ‘pop-up’ market.
Co- Founder and CEO Erik Eliason says” Our bigger vision is that it’s really easy to open a store online with Etsyor Storenvy. But offline there are still so many friction points with setting up a store. Things like Square make things like payments easier, but finding the space, securing the space, furnishing the space — it’s not an easy process”, reports Coleen Taylor of Tech Crunch.