OpenStore Company Profile

Background

Founded: 2021
Headquarters: Miami, Florida
Industry: E-commerce

OpenStore is an e-commerce technology company specializing in acquiring and operating Shopify-based businesses. The company's mission is to provide instant liquidity to e-commerce entrepreneurs, enabling them to sell their businesses efficiently. OpenStore envisions creating a decentralized department store by aggregating diverse Shopify brands, thereby enhancing the online shopping experience through spontaneous discovery.

Key Strategic Focus

OpenStore's strategic focus centers on:

Acquisition and Integration: Identifying, valuing, and acquiring Shopify merchants to build a diverse portfolio of e-commerce brands.

Operational Excellence: Utilizing proprietary technology and data-driven methodologies to manage and scale acquired businesses efficiently.

Market Expansion: Targeting direct-to-consumer brands with annual gross merchandise volumes between $1 million and $10 million, primarily within the U.S. market.

Financials and Funding

OpenStore has secured significant funding to support its growth:

Total Funding Raised: Approximately $150 million.

Valuation: As of September 2022, the company was valued at $970 million.

Notable Investors: Lux Capital, Atomic, Founders Fund, General Catalyst, and Khosla Ventures.

Utilization of Capital: Funds are primarily allocated towards acquiring additional Shopify businesses, enhancing technological capabilities, and expanding operational infrastructure.

Pipeline Development

OpenStore's growth strategy includes:

Brand Acquisition: As of late 2022, OpenStore has acquired over 40 Shopify stores across various categories, including apparel, home goods, beauty, skincare, and electronics.

Consumer Reach: The company has served over 2 million customers, offering more than 100,000 products.

Future Milestones: Continued expansion of its brand portfolio and enhancement of its consumer-facing platform to facilitate product discovery.

Technological Platform and Innovation

OpenStore differentiates itself through:

Proprietary Pricing Engine: An automated system that evaluates potential acquisitions by analyzing metrics such as revenue growth, customer acquisition costs, and repeat purchase rates.

Operational Automation: Leveraging technology to streamline the management of acquired brands, including marketing, customer service, and inventory management.

Data-Driven Insights: Utilizing data analytics to optimize business performance and inform strategic decisions.

Leadership Team

Keith Rabois: Co-Founder & CEO. Former General Partner at Founders Fund and executive roles at PayPal, Square, and Opendoor.

Jeremy Wood: Co-Founder & Head of Engineering. Former engineer at Google.

Matt Lanter: Co-Founder & Head of Product. Former Chief of Staff at Founders Fund.

Frank Kosarek: Head of Sourcing. Former Business Operations at Atomic.

Daniel Lynch: Head of Finance. Former Head of Finance at Pathpoint.

Leadership Changes

As of the latest available information, there have been no significant recent changes in OpenStore's leadership team.

Competitor Profile

Market Insights and Dynamics

The e-commerce aggregator market has experienced substantial growth, with companies focusing on acquiring and scaling online brands. The U.S. e-commerce sales reached $1 trillion in 2022, indicating a robust market with significant opportunities for aggregators like OpenStore.

Competitor Analysis

Thrasio: Founded in 2018, Thrasio is a leading acquirer of Amazon third-party private-label businesses. As of October 2021, it had acquired over 200 brands and was valued between $5-10 billion.

Perch: Established in 2019, Perch focuses on acquiring and operating Amazon and other DTC brands. It has raised significant funding and manages a diverse portfolio of brands.

Heyday: Founded in 2020, Heyday acquires and incubates digital brands, providing them with resources to scale. It has raised substantial capital and competes directly with OpenStore in the e-commerce aggregation space.

Strategic Collaborations and Partnerships

OpenStore has established partnerships with various investors and stakeholders to bolster its market position and operational capabilities. Notable collaborations include investments from venture capital firms such as Lux Capital, Atomic, Founders Fund, General Catalyst, and Khosla Ventures.