The Web-fueled florist company BloomNation confirmed Tuesday (Oct. 7) that it has raised an additional $5.5 million (a total of $7.2 million) from Andreessen Horowitz and Ronny Conway (son of angel Ron Conway), according to a report in the Los Angeles Times.
The Times spoke of the difference between Bloom and existing floral sites, which is presumably what intrigued these investors.
“Consumers who visit BloomNation’s website enter their address to reveal pictures of arrangements posted by nearby florists. They can hunt for one they like, and then order it to be hand-delivered by the florist or someone hired by them. Buyers receive a photo before the item is delivered so they can verify it looks right. BloomNation charges a 10 percent commission,” the story said. “The system is a step up from online retailers such as 1-800-Flowers.com, according to BloomNation, because florists see a bigger cut of sales and they post possible arrangements themselves rather than designing to recipes. It forces them to compete on creativity and price, creating a win for consumers, the company says.”
The floral segment of online has seen a healthy amount of investment lately, the story said. “BloomNation’s new funding means that four major flower-industry start-ups have raised about $35 million, led by the nearly $18 million behind H.Bloom, according to data from CB Insights. Fellow Los Angeles start-up The Bouqs Co. has raised $7.85 million. They’re tackling an industry worth $7 billion to $10 billion that’s been rocked recently by the recession and unfortunate weather.”
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