Founding Background

The four founders of Move Loot also encountered the above problems during the moving process, so they founded Move Loot in 2013 to reduce the hassles and waste in the sale of second-hand furniture.

Website Overview

Move Loot sellers need to submit furniture photos and pricing to the website, and communicate with the website about the shipping date after passing the website review. Move Loot will pick up the goods at the specified time and transport them to its own warehouse. Move Loot will clean and organize the furniture entrusted by the seller, and professionals will take photos, upload them to the website, and classify them into corresponding categories for sale. Once the furniture is successfully sold, the Move Loot seller can get half of the furniture price as compensation, and Move Loot will earn the other half of the income; if the furniture is not sold within 30 days, the seller can reduce the price; if the furniture is not sold within 60 days, the seller can choose to donate or take back the furniture.

Workflow

Financing

When it was first founded in 2013, Move Loot received a $ 2.4 million seed investment from venture capital firm Y Combinator .

In 2014 , it received $ 2.8 million in angel investment, led by venture capital firms First Round Capital and Index Ventures , and other participating investors included the famous Google Ventures, SV Angel , and Y Combinator .

In February 2015 , MoveLoot received $ 9 million in funding from Metamorphic Ventures . MoveLoot will use the funds to expand its service footprint and further optimize logistics and warehouse services.

Bankruptcy

Move Loot officially shut down in July 2016. One of the key issues was its poor move plan. They chose to work out of a substantial furniture storage room without accurately considering the expenses of running it and evaluating the benefits. As a result, costs continued to soar while benefits remained low. The startup also tried to expand and grow to New York and Los Angeles in the hopes of receiving some secured financing. This unbalanced cost - revenue situation prompted a massive layoff of employees.

Additionally, Move Loot 's rumored upcoming partnerships and acquisitions never came to fruition, and after a poor customer review and massive internal layoffs, Move Loot had to officially cease operations.

References