San Francisco-based Resident, owner of four e-commerce mattress brands — Awara, DreamCloud, Level and Nectar, as well as e-commerce home furnishing brands 1771 Living, Bundle and Wovenly — has received $12.5 million in financing from Liquidity Capital.
Liquidity, which is headquartered in Tel Aviv, Israel, offers “unlimited, unsecured, nonrecourse, no-dilution growth capital funding to growth stage startups,” according to a news release. It calls its model “trajectory-based financing,” which enables companies to “double down on their hyper-growth without giving up equity.” Liquidity works with promising startups, taking on all the financial risk. Its funding decisions are guided by machine-learning algorithms that forecast future business trends, the company said.
“We are thrilled to be investing in Resident,” said Ron Daniel, Liquidity co-founder and chief executive officer. “Seeing as Resident is the fastest-growing e-commerce retailer in North America, this investment strengthens our investment portfolio greatly.”
Ran Reske, Resident co-founder, said: “We have been extremely impressed with the Liquidity Capital team from our very first meeting with them. Ron Daniel clearly understands all the ups and downs an entrepreneur goes through, as he has already experienced this journey himself. The fact that they have been entrepreneurs was very important to us in choosing a capital partner. In addition, the new approach of nondilutive capital for a fast-growing business like ours is the perfect solution and made this transaction a no-brainer for us. We look forward to working with Liquidity Capital as we continue to scale our business.”
In addition to San Francisco, Resident has offices in London, New York and Tel Aviv. The company was founded in 2017 by Reske, Eric Hutchinson and Craig Schmeizer as the online mattress brand Nectar.