This morning, one of our Revolution Growth portfolio companies announced a huge milestone – $50 million in Series C funding led by Kleiner Perkins Caulfield & Byers (KPCB) with co-investment from Generation Investment Management (Generation). We also participated in this round that included other local D.C. area venture capital firms Grotech Ventures and SWaN and Legend Venture Partners.
Since we first invested in Optoro last year, we have seen incredible growth in the company as they have helped to transform the way some of the country’s best-known retail and manufacturing companies approach one of their most costly challenges – managing excess and returned inventory. More and more companies are recognizing the value of using Optoro’s cloud-based platform which ultimately turns what was an antiquated, low-margin business (liquidating returned, aged and excess goods) into a huge revenue-generating opportunity.
Today Optoro employs more than 200 employees, opened a new office in downtown D.C. across from the Verizon Center, and has signed several major new customers, including some of the world’s largest retailers. The new investment from Silicon Valley-based KPCB and London-based Generation is a great testament to Optoro’s transition from a local D.C.-area startup to a globally known and valuable brand, and we’re pleased to see them recognized as one of the most promising young companies in the country, poised for tremendous growth.
As KPCB Partner John Doerr said in a statement released today, “Retailers are missing up to $500 billion in unrealized value for returned or excess goods. This is big. Optoro’s proven cloud platform captures that value for retailers and consumers by efficiently finding new homes — not landfills — for returned goods.” We’re proud that Optoro is embracing a double-bottom line business model that reflects their commitment to sustainable commerce and sound environmental stewardship. By enabling the sale of goods on the secondary market, connecting them to recyclers, or donating items that cannot be resold, the company keeps products out of landfills and minimizes waste.
Congratulations to the company’s co-founders, Tobin Moore and Adam Vitarello, for their well-deserved success! The new investment will enable them to take the company to new levels by expanding major partnerships and growing into new markets. We’re excited for the next chapter in Optoro’s promising future.