February 9, 2015
UrbanStems, the Washington, D.C.-based startup that delivers hand-crafted bouquets in New York City and D.C., has announced that it has closed a $1.5 million round of seed funding. This new financing was led by D.C.’s Middleland Capital, with participation from Sagamore Ventures, NextGen Angels, and Great Oaks Venture Capital.
“Ordering flowers hasn’t really changed in the last couple of decades besides a crude addition of phone and web to the traditional neighborhood florist”, said Middleland Capital’s Alex Pessala. “This industry is in dire need of an ecommerce brand that can scale quickly and efficiently, while providing a much needed improvement to customer experience.”
As part of this round of funding, Pessala is set to join UrbanStems’s board. It will also allow UrbanStems to expand into cities outside of D.C. and NYC (where the company currently has offices), as well as directing some money towards additional marketing efforts and hiring more members to their team. Currently, the company has a team of nine full-time employees, and has seen double-digit sales growth every month since its founding in February 2014.
UrbanStems offers a unique solution in the flower delivery industry by importing flowers from eco-certified farms in South America and delivering them locally in D.C. and Manhattan. Flowers come within a period of 48 hours, allowing the company to provide fresh flowers to local consumers. Deliveries made through UrbanStems are much cheaper than those offered by traditional flower delivery services. Bouquet options are priced between $35 and $55 and are delivered within two hours after placing an order.
Editor’s note: Tech Cocktail CEO Frank Gruber and COO Jen Consalvo are both members of NextGen Angels.
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