In a recent story in Entrepreneur, Mabbly CEO Hank Ostholthoff dubbed Chicago the New B2B Boomtown, writing that "Chicago is going to be the next startup powerhouse for B2B innovation."
And that's certainly hard to argue, given the B2B tech successes we've already seen in companies like Cleversafe, Braintree, Jellyvision, kCura, and Kapow, to name a few.
But that's not to say Chicago can't do consumer tech (Chicago has birthed Groupon, GrubHub, Motorola, and Trunk Club, after all).
With the holidays right around the corner, we wanted to take a look specifically at the consumer e-commerce companies gearing up for a busy winter shopping season. Here are 8 Chicago e-commerce startups to watch:
Raise
Chicago gift card marketplace Raise is gearing up for its busiest time of the year as people will soon start exchanging their unwanted Christmas gift cards for cash. On the platform, sellers can can list their gift cards at the price they're willing got accept, and the card is then featured on the Raise marketplace for buyers to purchase. Sellers get money instead of store credit for a brand they don't like, and buyers can purchase gift cards at below face value. Raise has been one of Chicago's fastest-growing startups, as it has raised more than $87 million since launching in 2013.
Luxury Garage Sale
Luxury Garage Sale wants to redefine consignment shopping. The Chicago startup, which launched five years ago and raised $1.5 million in February, provides shoppers with a curated selection of new and gently-used designer brand and vintage wardrobe items. Selling online and at its boutique shop at 1658 N. Wells St., Luxury Garage Sale sells high fashion at affordable prices. Its investors include Chicago Ventures and local angels like Trunk Club's Brian Spaly and Elle Bruno, Paul Lee, and Apex Ventures' Lon Chow.
Local Eclectic
Launched in 2013, Local Eclectic is an online marketplace that features under-the-radar independent designers from around the US. Founded by Alexis Nido-Russo, the former community partnerships manager at the Chicago Artists Coalition, Local Eclectic gives a platform for many lesser-known apparel and accessory designers to sell their items. The startup recently placed second in Fast Company's Pitch It To Win It bracket competition.
Stock Mfg. Co.
Stock Manufacturing Company launched to create an e-commerce menswear company in Chicago that not only sells in the Windy City, but manufactures here, too. The company's 40+ year-old factory is on the West Side of Chicago, and helps Stock Mfg. Co.'s mission of making a "meaningful impact on American job creation." And its direct-from-manufacturer business model helps keep prices down. The company raised more than $24,000 in 2013 on Kickstarter.
Blitsy
Chicago startup Blitsy, a one-stop-shop for arts and crafts, launched its online marketplace in 2012 to take on the $30 billion crafting industry. Blitsy, which raised a $3.6 million Series A from Greycroft Partners, Chicago Ventures, Trunk Club's Brian Spaly and others, sells crafting supplies at up to 70% off what you'd find at a brick and mortar retailer. New York-based Greycroft also invested in Chicago tech successes Braintree and TrunkClub.
Interior Define
Chicago furniture startup Interior Define launched in 2014 by former Bonobos Director of Customer Relations Rob Royer and helps people better shop for chairs and couches online. The company, which raised a $1 million seed round last year, has integrated 3D "furniture visualization software" into its website that allows shoppers to see every design change from every angle. The e-commerce startup specializes in affordable, customizable furniture, and everything the company makes is made-to-order, allowing the customer to build their ideal piece of furniture by choosing things like cushion firmness, length, material and color. Interior Define also has a showroom in Wicker Park at 2027 W. North Ave.
Reverb
Chicago-based Reverb, launched by serial entrepreneur David Kalt, is an online marketplace for buying and selling used and vintage music equipment. Founded in 2013, Reverb has become a one-stop-shop for buying, selling, and discovering used and vintage instruments, and it recently launched Reverb Lessons to connect aspiring musicians with experienced teachers. Reverb has raised more than $6 million since it launched, and its investors include Brad Keywell and Eric Lefkofsky of Lightbank, as well as musicians Rick Nielsen of Cheap Trick and David Lowery of Camper Van Beethoven.
Options Away
Booking holiday travel can be a nightmare. But Chicago startup Options Away wants to help you secure a low fare even before you're ready to book, so you don't have to worry about the price jumping on you down the road. Options Away, which launched in 2012 and raised a $3.5 million Series A in March, lets you put a deposit down on airfare to hold the rate. You pay a fee, between $4 and $50, and log back into Options Away when you're ready to book. If you cancel the trip, the hold expires and all you've lost is the fee. If the price drops, you pay the lower rate.
