CUSTOMMADE RAISES $4 MILLION TO SCALE COMPANY
CustomMade.com, co-founded by Mike Salguero, MBA '09, an online marketplace that connects shoppers with skilled artisans, announced that it has closed a $4 million round of funding.
CustomMade.com, an online marketplace that connects shoppers with skilled artisans co-founded by Babson MBA '09 alumnus Mike Salguero, today announced that it has closed a $4 million round of funding.
The new round was co-led by Google Ventures, who had invested in the earlier round, and Schooner Capital. Peter Binas of Schooner Capital will take a board seat. Existing investors Launch Capital, Nextview Ventures, Andrew McCollum, co-founder of Facebook, and First Round Capital all participated. The company had raised $2 million in its earlier round and will use the proceeds to expand distribution and build out the technology infrastructure.
CustomMade continues to see rapid growth in its business where shoppers get bids from local skilled artisans to create unique custom goods from colonial furniture to modern home décor and custom jewelry. The company’s transaction volume is growing at almost 50 percent per month with over 3,000 artisans in the system and $500,000 worth of projects requested each week. An average project receives three bids and is completed for $1,000, underscoring the robust eco-system the company has created.
“We are excited about the momentum we are seeing in our marketplace and the growing number of customers and artisans we are adding to it every day” said Seth Rosen, co-founder of CustomMade. “Google Ventures has been tremendously supportive of us during these past few months, and we look forward to deepening our relationship with them while welcoming Schooner Capital to our team.”
“CustomMade as a platform is creating a fundamentally different retail paradigm,” said Rich Miner, partner at Google Ventures. “The model of giving consumers the ability to access, select and create custom work as an affordable and fun alternative to shopping at a retail store is a large opportunity and one that we are excited about as we continue to work with CustomMade.”
CustomMade.com, co-founded by Seth Rosen and Babson alumnus Mike Salguero M'09, is a unique online marketplace connecting craftsmen and artisans of all kinds to customers all over the world. CustomMade’s unique interface makes it easy and safe for a customer to work directly with a craftsman, personalizing both the end product and the creation experience for projects like custom jewelry, furniture, and home decor. Customers are able to watch their project being created in real-time, and CustomMade provides protections to insure a customer’s ultimate satisfaction. The company’s long-term goal is to be the primary source for all things custom made or customized. For more information about CustomMade.com, visit www.custommade.com.
By Nancy Sullivan, | 04/30/2012 10:00