After winning over the heart of Shark Tank investor Kevin O'Leary last year, Lovepop — a Boston-based maker of 3D pop-up cards — announced on Tuesday it has raised a $6 million Series A round backed by O'Leary among other investors.
The round for the Techstars Boston alum was led by Ryan Moore, founder and partner at Cambridge venture capital firm Accomplice. Other investors included Wayfair CEO and co-founder Niraj Shah, Crashlytics founder and Twitter exec Wayne Chang and Bain Capital's Bob White. Lovepop spokeswoman Kate Burke told me that O'Leary's previously committed $300,000 investment in the startup, which put its valuation at $2 million, was not part of this new round.
The financing round will be used to support the recent opening of two New York City retail locations — adding to its several locations in the Boston area — as well as the launch of the startup's new custom wedding invitation platform. Lovepop will also further invest in additional design and production resources. Burke said the startup has aggressive hiring plans in conjunction with the round, and it plans to make hires across its design, operations, sales and customer happiness teams. The company has nearly 200 employees, with over 30 at its Boston headquarters and the remaining ones at its retail sites.
Lovepop, which aims to win over people across all four seasons with its greeting card alternative, says it now sells over 1 million cards a year, with the startup having grown more than 400 percent in the last 12 months.
“This is a new generation in gifting. Millennials aren’t going to drugstores to buy cards. They are online, and they are looking for something unique," O'Leary said in a statement. "Lovepop’s founders understand this like no other company I’ve seen. These guys are the future of card giving, and I think you’ll see them evolve in some very unexpected ways."
The startup's 3D pop-up cards are designed using software and are based on an art form called kirigami, which uses cuts from paper to form intricate designs instead of folds, like origami does.
"What we’re selling at Lovepop isn’t paper," Rose said in a statement. "It’s an unexpected moment -- you get an ordinary envelope in the mail but when you open it you find a 3D teddy bear, a pirate ship, or a beautiful willow tree love scene. When our customers buy the perfect Lovepop for someone, they are sharing a deep personal connection."
