For any startup, its most significant challenge is to get investors who believe in their idea and wish to support it. Especially when the global e-commerce sales are estimated to be at USD 5.5 billion this year, the competition is tough for startups. Because - a startup specialising in developing no-code software aims to connect different data sources to automate high volumes of website updates.
The founder and CEO of Because - Ashland Stansbury has stated that most e-commerce companies are spending over USD 1.3 trillion to drive traffic to their website. However, only 3% of this traffic leads to sales and customer purchases. The Tampa-based company has come up with an innovative solution to counter this issue, they use a "Canva-like" editing experience wherein e-commerce managers can create and publish messages regarding delivery and availability, shipping and promotion costs aimed at increasing conversion rates. In an interview with TechCrunch, Stansbury explained that hundreds of developers' hours are saved by using Because. They also added that with Because there is absolutely no need to have any coding abilities and makes the entire process easier and accessible to many developers. Stansbury has also claimed that Because can drive up an average of 38% in cart rate within the first 90 days of integration. The market the company aims to address is quite large. It is currently on Shopify and manages over 700,000 merchants and more than 50 products.
As of last year, Because managed to raise USD 650,000 through an Angel investor, which enabled the company to add 900 more merchants and 150 paying customers. In the seed round of investment, the company has seen an investment of USD 3 million. It aims to increase its team and integrate with other c-commerce platforms like Smile.io, ShipBob, and Klaviyo. The goal of these integrations is to use artificial intelligence technology in their operations. Using artificial intelligence will also enable Because's customers to purchase and compare their results against other industries from the same industry or location.
Harlem Capital led the seed capital round, and this was reportedly their third investment this month. Harlem Capital has invested in upcoming enterprises like Drip and Glow Labs. In addition to Harlem Capital, companies like Studio VC, Gaingels, North Coast Ventures and other angel investors.
About Harlem Capital
Harlem Capital is an early-stage venture firm and is headquartered in the Greater New York Area, in Northeastern US. The fund’s founders are Brandon Bryant, Jarrid Tingle and Henri Pierre-Jacques. Harlem Capital invests in seed-stage and tech-enabled startups, with their primary focus on minority and women founded enterprises. So far, it has carried out over 48 investments and enabled a lot of upcoming startups. They also have 34 diversity investments. The goal of Harlem Capital is to change the face of the enterprise, and it has seven dedicated investors on its team.
