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Massdrop Raises $6.5M To Turn Group Buying Into A Broader Community Platform

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Massdrop Raises $6.5M To Turn Group Buying Into A Broader Community Platform

Massdrop, a startup offering what it calls “Group-driven commerce,” is saying that it has raised $ 6.5 million in Collection A funding.

The Spherical used to be led Via Mayfield Fund, with extra investment from previous backers Kleiner Perkins Caufield & Byers, First Round Capital, and Cowboy Ventures. Massdrop has now raised a total of $ Eight million.

The Massdrop adaptation works Through permitting groups of “enthusiasts” to gather on the site and talk about the products that they’re enthusiastic about Buying. The Company then negotiates immediately with the manufacturers to create different Staff reductions.

Founder and CEO Steve El-Hage stated that “tremendous-good individuals had tried to get the ball rolling up to now” on Staff Shopping For — one in every of them was Mercata, which shut down back in 2001. (Extra just lately, I’ve written about a group-Shopping For startup called Higgle.)

However, he stated that not like previous Workforce-Buying sites, Massdrop isn’t considering “fanatic merchandise” with a somewhat area of interest market. Yes, it’s working with enthusiast groups, but it surely’s looking to sell them merchandise which have a Huge appeal.

For Instance, El-Hage stated that audiophiles fashioned one of the first communities on Massdrop, they usually used the service to barter a deal on “incredibly fine quality headphones” (El-Hage in truth gave me the particular product identify, however it had quite a lot of numbers and letters in it, and my eyes started to glaze over), in the end inserting an order for greater than 2,000 of them.

Plus, El-Hage’s imaginative and prescient doesn’t stop at Workforce-Shopping For. Instead, he sees the commerce part of the trade as just step one in higher plan to turn Massdrop into the center of these completely different communities. In Fact, he mentioned The Company has began preserving in-particular person meetups two years ago.

“Up until now [Massdrop launched in 2012], we’ve been nailing down this commerce model, making sure we can sustainably add worth to every of the communities,” he said. “With this new Round of financing, we’re completely restructuring our internet product to make it possible for communities to have their very own particular person component of the web site.”

Within The funding unlock, Mayfield Managing Director Tim Chang made a equivalent remark, announcing the agency has “long held a view that commerce stands to be disrupted Through being really Group and hangout first, marketplace 2nd.”


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