NOTE: GrowthBeat tickets go up $200 this Friday at 5pm Pacific. VentureBeat is gathering the best and brightest in modern digital marketing to help declutter the landscape, simplify the functions, clarify the goals, and point the way to success. Get the full scoop here, and register by Friday to save!
Deal Decor, an ecommerce site that allows consumers to buy quality furniture online at a reduced price, has announced $1.2 million in seed financing.
Deal Decor sources its inventory directly from factories. Each week, three new pieces of furniture are featured on the site. If enough people decide to purchase an item, the company buys the furniture wholesale from the manufacturer and delivers it to consumers. By eliminating the middlemen and using group buying to cut down on costs, Deal Decor can offer furniture for far less than mainstream retailers.
This model also cuts out the unpleasantness of spending a Saturday at Ikea, although Deal Decor does not yet offer Swedish meatballs as part of the shopping experience. Something for the team to consider.
Most of Deal Decor’s partner factories also produce furniture for stores like Crate & Barrel, Pottery Barn, Home Depot, and Williams-Sonoma. While this does not mean the items for sale have these brand names associated with them, the company alleges that its offerings have the same level of quality as the large retailers’.
Similar to hot ticket company Warby Parker, Deal Decor will have a few showrooms in each market so customers who still want the sensory experience of shopping can actually see the pieces.
Deals stay open for 10 days, or until enough people have opted into a deal to fill a shipping container. When the deal closes, Deal Decor places an order with the factory and then has it shipped to the buyers, for up to 70% less.
Deal Decor is currently running its first deal for California residents. The company is based in San Francisco.
Investors include Rick Thompson, Ed Cluss, Mark Stevens of Sequoia Capital, Brad Koenig formerly of Goldman Sachs, MJ Elmore from Institutional Venture Partners, Jim Mclean of Crosslink Capital, and others.