Mercent, which provides online marketing tools to retailers such as REI, Guess and Bass Pro Shops, has raised a small $500,000 round of capital that it will use to weather the seasonality of the e-commerce business. The Seattle startup -- backed with $14 million from Madrona Venture Group and others -- will be able to draw on the cash as needed if business slows during the non peak periods, said CEO Eric Best.
Call it a "rainy day" pool of capital.
The 45-person company is striving to reach cash flow break even and profitability, with Best declining to say when that may occur but adding that the company is making progress toward those goals.
Unlike some in the online retail space, Best said that Mercent's business is holding up quite nicely. That's partly because the online marketing tools -- which give retailers exposure on site such as Shopping.com, eBay and Amazon.com -- allows customers to measure what is working and what is not working.
Because of that, Best said that the company is "well insulated" from the overall problems in the retail business.
"Our objective is to continue our growth and to get to cash flow break even and profitability," said Best. "Q4 is going to be an exciting quarter for us.
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