If you don’t have faith in yourself and your co-founder, you don’t do a startup. If you do a startup, you hope others have enough faith in you to invest. When you attract investors who understand the problem you’re solving because they live with it every day, your faith in your solution grows. Now, the majority of our investors have doubled down on Loop Commerce’s e-gifting solution. We couldn’t be more thrilled to have their continued support throughout this journey.
We dreamed big from the beginning and are now executing on an even bigger opportunity — to make e-commerce better overall for retailers, partners and consumers. Having investors that understand what we are doing is a huge advantage and a great personal experience. We’re super-charged for our next growth phase. The $16 million in new funding from existing and a few new strategic investors (for a total of $30 million) will allow us to strengthen our capabilities even further and fast track our plans to enhance Loop’s solution. With this funding we’ll be able to to hire additional team members across all functions of the organization, including engineering, data, sales and marketing, product, design and customer support. These hires are essential to meet continuing demand for our new, more personal way to buy, give and receive gifts online.
If you haven’t already heard of Loop Commerce, we’re a Silicon Valley, California company that has developed a solution that enables retailers to offer their customers a highly personal way to give and receive gifts online through a unique experience we call e-gifting. We launched our e-gifting platform towards the end of last year with several strong retail partners, including Macy’s, Lancôme, Diane von Furstenberg, Urban Decay and Johnny Was.
E-gifting eliminates many of the barriers consumers experience when they try to buy and send gifts, while driving significant business value to the retailers. Here’s how it works: consumers can select and send any product as a gift, without fretting about the specific size, color, style, mailing address or delivery constraints. Recipients receive notifications of their gifts, and are directed to the retailer’s online store to accept them. Recipients can then configure gifts to suit their preferences, or “virtually” exchange them before the gift is shipped to the address of their choosing.
Consumers “get” e-gifting, and love the experience, as it is actually a more seamless, personal, intuitive and flexible way to buy and receive gifts. Our retail partners love it too and appreciate the value it brings to their businesses.
We built and optimized the platform with significant R&D over the past 2+ years and collective experience working with some of the largest and most demanding brands. The Loop platform is a complete turnkey solution that seamlessly integrates with the retailer’s online stores and backend systems; it can be implemented in four weeks with minimal IT support required on their end. Retailer benefits include incremental sales, new customers, increased loyalty, overcoming traditional gift-related expenses such as costly returns and promoting a truly last minute gift purchase option. Retailers also receive unique customer and purchase-related insights based on the Loop Network, fast time to market, and a high ROI.
Retailers tell us they’ve been looking for a solution to overcome the obstacles consumers face when trying to buy a real physical product as a gift as well as differentiate them in the crowded digital retail world. So it is not surprising that many of our initial and most recent investors are from the retail world. Others include strategic investors from the technology and finance sectors.
We are incredibly fortunate to have these kinds of investors who have experienced the problem we are solving, understand the deep complexities around it, and guide and support us each step of the way. We’d like to thank all of them. Without our investors, we couldn’t have dreamed as big as we have and come so far. We look forward to what the future holds as we head through 2015 and beyond, continuing to make our dreams a reality.
I also want to thank our team here at Loop. We have an incredible group of people that work hard, support each other every day, and create a vibrant and fun work environment – a place we consider our second home. And why do we all do this? Simply put, it is hard to find anything more gratifying or challenging than to be a pioneer in making such a significant impact on the trillion dollar commerce industry. And by breaking down the existing barriers and limitations of purchasing gifts online, we enable people to send thoughtful gifts more often – making the buyers, and the gift recipients, just a bit happier!
CEO and Co-Founder, Loop Commerce