Subscription jewelry startup RocksBox secures $1.5M in seed round
RocksBox closed $1.5 million for its seed funding round, TechCrunch reported. The financing came from Matrix Partners, Ellen Levy and Sandra Perkins.
Launched in beta in 2012, Rocksbox was founded by Meaghan Rose who bootstrapped the idea at first. She built a WordPress site for it and used her own jewelry as stocks. She gave friends who wanted to join sample boxes from her own closet, the report said.
Through her startup, Rose wants to empower customers. She told TechCrunch, "Jewelry is a fun category, but it's filled with fear and intimidation."
For a membership fee of anywhere from $15 to $19 a month, RocksBox sends customers a unique box containing three or four pieces of jewelry for six, 12 or unlimited number of months. Customers also have the option to buy any of the pieces in the box or just wear them until they grow bored of the jewelry and just return them. Rocksbox gets information from the consumer's feedback and buying data in order to send a box that is tailored to the customer's needs next time, the report said.
Rose, who purchases the pieces at a wholesale price from designers, said her company has exhibited a positive cash flow in December and that their customer base is growing 30% to 40% month-over-month in 2013. She has also rolled out her very own designer collection and hopes to offer a premium box in the future. She also has plans of growing the brand to more than just jewelry but include accessories as well, the report said.
Josh Hannah, a General Partner at Matrix Partners, told TechCrunch why he supported RocksBox, "I was really pushed to invest by the fact that several people close to me subscribed and could not stop raving about RocksBox. I've rarely seen that level of enthusiasm for such a young product."