Harlem Capital leads the seed into Because, an e-commerce-powered startup TechCrunch
With global e-commerce sales poised to become a $5.5 billion industry this year, e-commerce-enabled software startups are looking to create a niche in this huge market. .
One of them is Because, a startup developing codeless software that connects different data sources to automate large amounts of website updates.
Founder and CEO Ashland Stansbury explains that e-commerce companies are spending a total of $1.3 trillion driving traffic to their websites, but only 3% of the time. that leads to a customer purchase. Additionally, the average Shopify business owner is managing a large product catalog, often with over 50 products.
The way content is updated often means that a manager has to go to each site and change things manually, which often leads to miscommunication and confusion.
Instead, Tampa-based Because, launched in November 2020, comes to provide a “Canva-like” editing experience where e-commerce managers can design and publish. messages, such as about delivery and availability, promotions, and shipping costs, to increase conversion rates.
“We estimate tens to hundreds of hours are saved each month using Because,” Stansbury told TechCrunch. “It also saves developer time.”
Although some companies throw around the phrase “no code,” they still claim some coding capabilities, but Stansbury says Because doesn’t. There’s a campaign dashboard with different types of content and templates to pull from, very similar to Canva, and managers can automatically adjust store branding and colors, then change fonts , text or color and drag and drop to see how it will look live.
The “hot spot” is, so to speak, its rule engine for inventory. Instead of having to go through each product, the tool only shows products that have a large amount of inventory or have only a few left.
In the e-commerce industry, software market and e-commerce platform is expected to be valued at nearly $4 billion by 2022 and triple by 2032. Companies like Melonn, CommerceIQCJ Dropshipping, Gelato and Brand Moonshot are also active in this space.
Because it raised $650,000 in angel investments last year, this has allowed the company to grow to over 900 sellers and 150 paying customers.
Now, armed with fresh funding, a $3 million seed round, Because plans to grow its product and team; build integrations with additional c-commerce platforms such as Klaviyo, Smile.io and ShipBob; and leverages artificial intelligence to accurately predict which messaging site users need to buy from and compare their results with other stores in similar industries and geographies.
Harlem Capital led the round and this is the third investment from them we’ve reported on in a month, including Drip and Glow Lab. Joining the investment in Harlem are Studio VC, North Coast Ventures, Gaingels and angel investors, including several former Shopify executives.
Meanwhile, Stansbury says Because can drive cart rates up an average of 38%, usually within the first 90 days of integration. Her addressable marketplace is already sizable — now on Shopify, which has more than 700,000 sellers with 50 or more products to manage, she added.
She added: “Development has come with a real-life hockey stick, and it’s been a team of me and two engineers over the past year. “We will now invest in sales and marketing, and complete the leadership team with a head of product and a head of sales.”