This important investment will allow us to continue to expand our presence in both Canada and the United States
Montreal, Canada (Vocus) July 12, 2010
Flash sale site Beyond the Rack today announced that it has raised USD $12 million in funding from Highland Capital Partners LLC and BDC Venture Capital Inc. The proceeds from the equity issuance will be used to finance accelerated growth and expansion of operations.
Launched only 18 months ago, Montreal-based Beyond the Rack is the fastest growing private sale club in North America, having added over 1.5 million members in that time. Revenues have also ramped up quickly as the company continues to increase its top-line sales at a rate of over 30% each month to become a leader in the private, flash sale marketplace. With up to eight branded sale events per day, Beyond the Rack offers consumers the most sought after designer apparel, accessories, beauty, and home decor at up to 70% off retail prices.
While many other online shopping clubs target narrower market niches, Beyond the Rack has distinguished itself by aiming at a broader demographic with a diverse selection of merchandise that includes men’s and women’s apparel and accessories, children’s clothing and toys, beauty, housewares, and home décor. “This important investment will allow us to continue to expand our presence in both Canada and the United States,” said Yona Shtern, CEO of Beyond the Rack. “We are absolutely delighted to add such distinguished and sophisticated investors to our team,” added Mr. Shtern.
“Beyond the Rack’s early growth has been impressive and a testament to strong consumer demand and the company’s business model,” added Dan Nova, General Partner with Highland Capital Partners. “We are extremely pleased to be joining the team and look forward to playing a pivotal role in their continued success as a market leader in North America.”
Highland boasts an impressive track record leading investments in innovative Internet and disruptive commerce companies. Previous investments by the firm include such companies as VistaPrint, Lululemon Athletica, Ask Jeeves, Lycos, MapQuest, and more.
“We have been watching Beyond the Rack transform from a start-up into a market leader in just over 18 months and consider them one of the most exciting companies to emerge on the North American technology scene in years,” said Steve Abrams, Director at BDC Venture Capital. BDC is a major venture capital investor in Canada, active at every stage of the development cycle, from seed through expansion.
This latest round of funding from Highland and BDC follows Beyond the Rack’s previous
USD $4.5 million investment from European Internet entrepreneurs Oleg Tscheltzoff and Oliver Jung, venture fund Montreal Start Up, and entrepreneur and angel investor David Chamandy.
About Beyond the Rack
Beyond the Rack is North America’s premier members-only shopping club offering consumers the most sought after designer brand apparel, accessories, beauty, housewares and home décor items at up to 70% off retail prices. Beyond the Rack sells its products in the context of two-day, first-come, first-served events with up to eight branded events per day. A privately-held company, with offices in Montreal and New York, Beyond the Rack currently has a staff of 120 full-time employees and 1.5 million North American members.
About Highland Capital Partners LLC
For the past twenty years, Highland Capital Partners has taken a sector-focused approach to investing in exceptional seed through later stage growth companies in the healthcare, internet & digital media and technology markets. Highland actively seeks to provide the right mix of strategic guidance, hands-on leadership and deep industry domain expertise for helping entrepreneurs and their teams become market-leading organizations. With over $3 billion of committed capital and offices in Boston, Silicon Valley, Shanghai and Geneva, Highland has invested in and worked to create such firms as Ask Jeeves, Avid Technology, CheckFree, Conor Medsystems, Continental Cable, Generation Health, lululemon athletica, Lycos, MapQuest, Ocular Networks, Odyssey Healthcare, Quigo, Starent Networks, Sybase, Telica and VistaPrint.
About BDC Venture Capital
BDC Venture Capital has been involved in venture capital since 1975 and is a major venture capital investor in Canada. Active at every stage of the company's development cycle, from seed through expansion, BDC Venture Capital focuses on technology-based businesses that have high growth potential and that are positioned to become dominant players in their markets. To date, it has invested in more than 400 companies with investments totaling over $1.2 billion in the life sciences, telecommunications, information and advanced technology sectors, as well as commitments of $253 million in 19 funds. Visit bdc.ca for more information.
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