Loot Crate Closes $18.5M Series A Funding Round Led by Upfront Ventures
Funding to Drive Next Evolution of Fan-Based Commerce Platform and Continued International Expansion
LOS ANGELES, June 2, 2016 /PRNewswire/ -- Loot Crate, the leading fan-based commerce and community platform announced its $18.5 million Series A funding round today. The funding round was led by Upfront Ventures, with participation from Breakwater Investment Management, Time Inc., Downey Ventures, M13, and Sterling.VC.
Loot Crate offers its consumers, affectionately known as "Looters," themed mystery boxes each month tailored around leading entertainment and pop culture franchises. Each box offers 4-7 uniquely curated products (the majority of which are Loot Crate-exclusive items) and content that range from collectable figurines to comic books and apparel.
Since launching in 2012 with $25,000 in seed funding, Loot Crate's revenues have grown to more than $100M annually and in the process created a dedicated following of over 600,000 monthly recurring subscribers worldwide. The company currently services 35 countries, including the UK, which has become its second largest market and where the company will be opening secondary offices this summer.
"Loot Crate is defining the next generation of ecommerce by revolutionizing the way that fans worldwide engage with each other and access exclusive pop-culture and entertainment merchandise. We've shown that by authentically reaching out to fans, we can create memorable monthly ritual experiences with strong emotional bonds," said Loot Crate CEO, Chris Davis.
Loot Crate has proven that on-trend product selection, coupled with active participation from Looters to help drive the curation process, as well as access to exclusive products and content, dramatically increases the engagement and retention of consumers. Through strategy and insights, the company has expanded its product line into new areas beyond its original crate offering. Loot Crate's product lines now include apparel, gaming, pets and anime crates.
"The Loot Crate team has bootstrapped a truly elite business by consistently delighting their growing community of fans and customers," said Greg Bettinelli, partner at Upfront Ventures, the largest and longest-serving venture capital fund in Los Angeles. "By partnering with the leading entertainment companies, Loot Crate is able to provide a fan driven commerce experience that's not available anywhere else." Bettinelli will join Loot Crate's Board of Directors.
Finally, Loot Crate has created a channel for consumers to discover new and heritage brands across a variety of growing genres, while allowing entertainment companies a new direct to consumer, distribution platform connected with their multichannel marketing strategies. With that, the company is announcing a brand new integration with the Halo franchise, teaming up with 343 Industries, part of Microsoft Studios, to deliver an exclusive game-themed crate to Loot Crate's growing subscriber base.
"Looters have told us that every month they look forward to unveiling what's in the boxes we create," continued Davis. "By continuing to work with leading brand franchises, such as Halo, to re-imagine the fan experience, we know we have just tapped the surface of what possibilities exist to continue to satisfy our Looter community. With this fundraising round, we are excited about the ability to accelerate our innovation with partners and expand our footprint globally."
About Loot Crate
Loot Crate™, founded in late 2012, partners with the largest movie studios, game companies, comic publishers, and general pop culture talent to deliver multiple lines of monthly themed mystery boxes to fans, which we call Looters, around the world. More than just a branded box of licensed apparel and collectibles, Loot Crate™ represents and fuels the passion found in fandom for our consumers as well as our partner brands. Our employees share the same passions, and we live to share that love with our growing subscriber base, bringing them together with digital and real world platforms that connect our community of Looters. Loot Crate™ is committed to curating and creating an inclusive membership experience, offering all fans exclusive merchandise and content, month after month, year after year. For more information and to sign up for a Loot Crate subscription, please visit www.lootcrate.com.
The "Halo" Franchise
Exclusively published by Microsoft Studios and developed by 343 Industries, the Halo franchise is an award-winning collection of properties, over $5 billion in worldwide sales to date, that has transcended video games and grown into a global entertainment phenomenon. Beginning with the original "Halo: Combat Evolved" (2001) to the record-breaking launch of "Halo 5: Guardians" (2015), the critically acclaimed and record-shattering series of games has reinvented how people think about video games and has since built a fan base of millions worldwide and inspired multiple New York Times best-selling novels, a live-action digital series, comic books, action figures, apparel and more.
SOURCE Loot Crate
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