Farmstr, Organic Food Marketplace Shutting Down
Published By : 17 Feb 2015 | Published By : QYRESEARCH
Farmstr is a Seattle based startup company which supported small organic farmers sell their products directly to consumers. However, it recently announced that it is shutting down towards the end of this month.
According to the founder and CEO of Farmstr, Janelle Maiocco, their early momentum and runaway was not adequate enough to compete with companies that have secured tens of millions of dollars. The company raised around 1.35 million dollars in funding obtained from Trilogy Partners, who are Founders Co-op and angel investors like Rudy Gadre. However, the seed financing was not sufficient enough to keep this Seattle Starup Company up and running with Maiocco experiencing competition from Instacart, GoodEggs, and Amazon Fresh. Similar to Farmstr, GoodEggs is trying to make it easy for consumers to buy high quality level products from local farmers. GoodEggs raised around 21 million dollars with funding from Index Ventures and many other organizations during last September.
According to Maiocco, who previously worked as a chef in Europe, much to their chagrin they simply did not posses enough traction to justify their valuations for a substantive round of follow on financing. The 8 employee company worked with around 140 farmers throughout Pacific Northwest with around two thousand consumers. Currently, the organization is looking to sell its assets.
Maiocco further stated that as difficult as this transition is for them, they are proud of what they have build and their growth in the year 2014 and their relationships and learning have gained. They will first like to thank their investors and also the Seattle start up community for their provided support and to help Farmstr to the market.