Capstone Partners advised UrbanStems, Inc., an e-commerce floral arrangement and gifting delivery provider, on raising a $20.0 million Series C growth capital round in support of the company’s growth initiatives. The round was led by SWaN & Legend Venture Partners and DFE Capital Management, with follow-on Investments from Motley Fool Ventures, Gordon Segal, Gaingels, PAN and others.
Based in Washington, D.C., UrbanStems is an e-commerce provider of floral arrangements and a variety of curated gift options for nationwide next-day and limited same-day delivery in the U.S. The company launched on Valentine’s Day 2014, aiming to disrupt an outdated floral delivery system and provide a superior experience to its customers. UrbanStems works with the best-in-class designers to offer stunning bouquets and curated plants that fit every occasion.
With the new funding, UrbanStems will continue to hire and grow its team, build on its leading gifting technology platform, and scale infrastructure to support the brand’s accelerated growth plans. The company has grown 500% since the Series B in 2018, and has advanced its position as a leader in the direct-to-consumer floral and gifting space under the guidance of CEO Seth Goldman.
Seth Goldman, CEO, UrbanStems, said
"We selected Capstone due to its promise of senior support and involvement. At every turn, especially in critical moments, the most senior members of their team gave their time and attention to the transaction."
Goldman added, “We are elated to partner with SWaN and DFE to continue our founding mission to become the ultimate gifting platform that redefines how people connect with one another.”
SWaN & Legend’s Managing Director, David Strasser, commented
“We have seen UrbanStems build the best floral gifting brand in the U.S. over the past four years, and are thrilled to continue to support their expansion. We are excited to continue to partner with the strong team assembled by Seth, to continue to change the course of global gifting.”
Matt Huebner, Co-Head of Capstone’s Equity Placement Group, commented
“Under Seth’s leadership, the UrbanStems Team has built a highly differentiated DTC gifting and floral platform providing a user experience that generates enduring customer relationships. We are confident their expertise in scaling DTC businesses and their approach to the floral and gifting market will result in continued rapid growth at UrbanStems.”
Ken Wasik, Head of Consumer at Capstone, added
“UrbanStems is at the cutting edge of linking people emotionally in the new connection economy, providing an easy to use but highly impactful service to customers. We look forward to its continued outperformance.”