Furniture startups skip the showroom and go straight to your door

INSUBCONTINENT EXCLUSIVE:
Holden PageContributorShare on Twitter Holden Page is an editor and journalist at Crunchbase News. Startups making delivery and transport
easier than ever are a hit with venture capitalists, so it not a surprise that young tech companies delivering home staples — living room
sets, dining room tables, couches and more — are raising big dollars.From 2010 through 2017, venture investors haveoutfittedU.S.-based
furniture startups with a little over $1.1 billion in funding across 96 known rounds
But that funding has not been spread equally over time, as the following chart shows:Total dollars funneled into U.S.-based furniture
startups, according to Crunchbase, hit an all-time high of $432.7 million across 12 rounds in 2011.Wayfair, an e-commerce site dedicated to
selling furniture, raised a significant $165 millionSeries Athat year, accounting for more than a third of the total deal volume.But while
funding hasn&t surpassed 2011 levels, from that year through 2015, round counts steadily climbed
During this period, investments into seed and early-stage startups made up more than 70 percent of known deals.Whether or not this cohort of
seed and early-stage startups will act as fodder for late-stage investors is not yet clear
Before that happens, Stephen Kuhl thinks that there more work to be done.Kuhl, the CEO ofBurrow, a company that sells furniture over the
internet, toldCrunchbase Newsthat &selling traditional furniture made in China or Mexico isn&t innovative, and as such we wouldn&t expect to
see a lot of venture funding.& But that doesn&t mean that venture interest in the sector is doomed
Kuhl added that &a new company has to offer a unique product, experience and brand that is altogether [10 times] better than traditional
offerings
Expect the money to follow the new brands that truly shake up the status quo.&That may bear out
The funding data we examined tells one particular story: venture money has shown a preference for delivery and a consumer that doesn&t
easily call the place they live in &home.&Deliver, don&t move, furnitureFor city dwellers, modular, utilitarian couches are taking hold
And it increasingly clear you don&t have to leave your couch to purchase one.Let return to Burrow, which has raised a total of $19.2
million, according to Crunchbase
The startup has created a modular couch built for those who live in dense urban environments and may move often.&Our customers are
reflective of larger trends in the market
They&re more likely to be renters rather than homeowners,& Kuhl explained
&They&re likely to move multiple times over the course of a few years, and they crave thoughtful, high-quality goods.&To account for this
new type of customer, Burrow delivers each section of the couch in distinct packages
Burrow claims on its website that its direct to consumer business model and its ability to ship parts of couches, rather than one whole
couch, removes &over 70 [percent] of standard shipping costs.& The couch also includes modern amenities such as a USB charger, and Burrow
has also &launched an AR app that helps customers visualize a Burrow in their home,& according to Kuhl.However, Burrow isn&t completely
eschewing the showroom as part of its selling strategy
In a podcast interview with TotalRetail, Kuhl noted that the startup has &partner showrooms& in co-working spaces and other retail locations
in more than 20 cities.Of course, while modular design is helpful for city dwellers, there are those who enjoy a bit more of a personal
twist.Interior Define,a Chicago-based startup, has raised $27.2 million to offer direct to consumer couches and dining room sets
And, according to Interior Define founder Rob Royer, its appeal is being driven by a new breed of consumers who are interested in brands
that have &an authentic mission, deliver on a promised experience, and offer a real value proposition (not just a lower price).&That said,
both of these options still require that the furniture be owned — an unnecessary burden if you move often or just like fresh looks without
the commitment
Through Feather, customers can subscribe to a whole living room, bedroom or dining room for as low as $35 a month
According to Crunchbase, the New York-based startup has raised $3.5 million from established venture firms such as Y Combinator and Kleiner
Perkins.There are also startups looking to simply help brands sell more furniture by using artificial intelligence and augmented reality
One such startup, Grokstyle, has raised $2.5 million for an app that identifies furniture by image as well as style and pricing
preferences.In general, streets, kitchens and even front doors are being claimed by venture-backed startups
What you sit on might as well be paid for, in part, by venture capitalists, too.