Durham toy subscription startup gains tractions, adds $1.5M with local backing

For Rachael Classi, the pandemic has been a mixed bag. Sure, it's meant a big lifestyle change – leaving her job at TeamWorks last year to hunker down with her two kids. But it's also meant time to take chances – and the biggest one she's taken is entrepreneurship, founding toy subscription startup Tiny Earth Toys in Durham.

And local investors are beefing up their bets on her success.

Securities filings show the company just closed on an equity funder worth nearly $1.5 million, led by Bull City Venture Partners.

“I’m a father of three kids – 10, eight and six – and you know, have firsthand seen the problem with having a bunch of plastic toys in my house that accumulate,” said Bull City Venture Partners co-founder Jason Caplain.

The founding team from Spoonflower, fresh off their own $225 million exit to Shutterfly, also bought in, with Spoonflower co-founder Stephen Fraser saying in a prepared statement that Tiny Earth Toys "is one of those companies that comes along with a powerful, clear idea that, as soon as you hear it, you think to yourself, 'why hasn't anyone done this before?'"

For Classi, Tiny Earth Toys isn't just about occupying kids with developmentally-appropriate toys. It's also about saving the environment. When Classi became a stay-at-home mom last year, she suddenly realized how much plastic was in her own house. Plastic toys were everywhere.

"If you're a mom, you know," she said.

And with so many of the toys made of plastic, it's a recycling problem – meaning each item will likely end up piling up in a landfill.

So Classi decided to try to solve the problem with Tiny Earth Toys. The subscription service sends out high quality toys made from natural materials for a four-month stretch. Then families send the toys back and get a new crate of products. And families are buying in. Within just days of Classi publishing the website, 100 families had signed up.

Classi said the amount of attention the startup has gotten is both overwhelming and amazing – and that she's excited to keep building the company, one family at a time.

The first kit collection launched in March, attracting families in 35 states. The next step is to add to the collection – increasing the offering to cater to children up to 6 years old.