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Dot & Bo

The business, the turning points, and the decisions behind them.

Founded2013
Event year2016
FundingUS$20M
ValuationUS$60M

01 / WHAT IT BUILT

What the company did

Dot & Bo was a San Francisco-based online furniture and home decor retailer founded in 2013 by former CBS Interactive executive Anthony Soohoo. It targeted millennial shoppers with a story-centric approach, pairing furniture sales with design content and tailored advice, and later added office design services. The company raised about $20 million in venture funding at a valuation of roughly $60 million, grew its business 16-fold, and served millions of members.

02 / Dot & Bo FAILURE REASONS

Failure factors

Recode/Vox (24 Sep 2016) quotes CEO Anthony Soohoo and an investor: furniture e-commerce required more supply-chain/working-capital than VCs would fund after e-commerce fell out of favor; a public-company acquisition LOI did not close, and the firm could not find backers.

Unit Economics

a tight-margin furniture business required massive costs and capital outlays the model could not beat.

Fundraising

An investor said supply-chain and working-capital needs exceeded original expectations and VC appetite.

Macroeconomic Conditions

Soohoo said the e-commerce market was frozen/out of favor, pushing an M&A path that then failed to close.

03 / EVENT HISTORY

Events in the structured record

  1. Operations ended

    San Francisco retailer Dot & Bo closed the same day after acquisition talks with a public company broke down and said it had no option but to shut down.

04 / CONTEMPORARY REBUILD ASSESSMENT

Difficulty of rebuilding this project today

Material for this section is being gathered and checked. It will appear here once ready.

Rebuild difficultyPending assessmentNot completed
Scoring basisNot completed
ScalabilityPending assessmentNot completed
Scoring basisNot completed

Overall assessment: Not completed

05 / CAUSAL CHAIN

How the factors connect

  1. 01

    The company ceased all operations on September 23, 2016, after acquisition talks with a prominent public company fell through and it failed to find new investors.

  2. 02

    OSP Holdings, the parent of marketplace OpenSky, subsequently acquired the Dot & Bo brand, customer and vendor lists, and other assets for an undisclosed price, and relaunched it as a small-and-midsize-business marketplace.

  3. 03

    The $20 million in venture funding raised was effectively lost to investors; no creditor settlement was publicly disclosed.