Intimates start-up Lively has raised $3 million in seed funding.
Participants in the latest round include NF Ventures, GGV Capital and Harvey Sanders, as well as others. All investors were participants in the initial seed round that raised $4 million at the end of 2016.
Michelle Cordeiro Grant, founder and chief executive officer, said the funding will help with the marketing of the brand. She founded the company 22 months ago.
Lively was founded as an e-tailer. More recently, the company has experimented with physical experiences to create buzz around the Lively brand. The company calls these pop-up tours within cities.
According to the ceo, the company will research through social media what consumers like to do in a local area, set up events where the brand will be prominently on display, and return a few months later with a pop-up shop that’s open for a few days.
“Our company was founded as a community on social media,” she said. The ceo also noted that it relies on social media to engage the community where it elects to do the tour. She said examples include the brand taking over a baking class and even a yoga class. Those locales serve as Lively’s major marketing initiatives. They do about eight of them before returning to the area a few months later with a pop-up store.
The ceo said Lively has already been to SoHo in New York, Nashville, and most recently Dallas. Chicago and Portland are next on its tour agenda. “We completed over 50 different events since the day we launched,” she said. The brand’s presence at an event includes “swag for participants, a T-shirt or bags. They have this amazing moment with our brand and then help with our marketing through word-of-mouth spread,” the ceo added.
Based on learnings from stores that have already “popped up,” she said the ideal store size is just under 1,000 square feet.
The company touts that its competitors are “focused on spending hundreds of thousands of dollars on store layouts alone,” while Lively can build a “beautiful store at just over $10,000 and make a profit.”
While the company has more than sku’s, as well as a range of 26 sizes, what’s different is that all bras have one price point at $35. But a consumer who buys two will pay $55, while one who buys three will pay $75. The single price points also apply to undies, swimwear and sports bras.
“Most of our consumers bundle at least three Lively products” to take advantage of the discount, the ceo said.
The company also noted that it grew 300 percent year-over-year, while increasing its customer repeat rate, average order value and overall site conversion rate. Further, Lively said its site conversion rate is more than 4 percent, or two times the industry standard, and that 35 percent of customers have returned for second purchases.