Abe's Market Attracts $3.4 Million Venture Financing

CHICAGO, Feb. 10, 2011 /PRNewswire/ -- Abe's Market, (www.abesmarket.com), the leading online marketplace for great natural products, announced that it has closed a $3.4 million Series A round of financing led by Accel Partners, who are joined by existing investor Index Ventures and their other angel investors. The company will use this latest round of funding to continue its dramatic growth via aggressive and innovative marketing.

"Our first year sales demonstrate America's demand for natural and organic products," said Abe's Market co-founder Jon Polin. "We are excited about the continued support of Index Ventures and the addition of Accel Partners to our team, both of whom share our passion for bringing together buyers and sellers in a more personal way."  

The Organic Trade Association's 2010 survey shows US organic Food and Non-Food sales at $26.6 billion -- up 5.3 percent from 2008-2009 -- with non-food products up over 9 percent. Since its launch in October 2009, Abe's Market has quickly become the go-to site for a wide range of natural products. Abe's Market offers an innovative online presence for small to large companies looking to expand their reach beyond regional markets, and gives consumers a one-stop-shop for the best natural products anywhere. Abe's Market now works with nearly 300 vendors, and has seen its orders grow by 900% over the past six months alone.

"We have seen tremendous growth in specialty e-commerce. With its fragmented base of passionate sellers and a fast growing population of motivated buyers, we see natural products as a particularly attractive category," said Adam Valkin, Partner at Accel Partners, which counts Etsy, Groupon, Kayak, Diapers.com, ModCloth and Bonobos among its e-commerce investments. "Combine this with the entrepreneurial talent and marketing creativity of the Abe's Market team, and we have a shot to essentially redefine the way natural goods are bought and sold online."

"The genius of Abe's Market is how it treats its audience as real people who are hungry to share their stories with one another, rather than simply as anonymous, disconnected merchants and consumers," said Saul Klein, Partner at Index Ventures. "Through creative interviews, Abe's Live broadcasts and behind-the-scenes peeks, sellers on Abe's Market provide an intimate and personal introduction to themselves and their products."

Beyond providing access to a wide breadth of natural products, the company is taking social shopping to new heights. Some of Abe's Market pioneering programs include "Share It", in which shoppers get an instant 10 percent off their order just for sharing their shopping cart with friends, and "Abe's Live", a series of live online broadcasts that give consumers a chance to meet and interact with the people behind the products they buy. These programs have dramatically bolstered sales and engagement in just a few months.

"We pride ourselves on delivering the informative and interactive experience of a farmer's market. But where farmers markets are traditionally limited to a few hours a week and mostly offer produce, Abe's Market offers goods ranging from body and home care to pet products and healthy snacks," added Abe's Market co-founder Richard Demb. "The result has been a win-win– with sellers expanding their revenue potential and reach, and consumers discovering more of the natural products they love. This round of funding will allow us to connect even more passionate buyers and sellers throughout the country."

About Index Ventures

Index Ventures (www.indexventures.com) is a leading venture capital firm active in technology venture investing since 1996. The firm is dedicated to helping top entrepreneurial teams in the Information Technology, Clean Technology, and Life Science sectors build their companies into market defining global leaders.  The company has offices in Geneva, London, and Jersey and will soon be opening an office in the US.   Index focuses on investments from seed through growth stage companies and current portfolio companies include ASOS, Astley Clarke, Etsy, Flipboard, Just-Eat, Lovefilm, Moleskine, Notonthehighstreet and viagogo and exits include Betfair, Last.fm, Net-a-Porter, Playfish and Skype.

About Accel Partners

Founded in 1983, Accel Partners is dedicated to partnering with outstanding entrepreneurs and management teams to build world-class companies. With over $6 billion under management, Accel has helped entrepreneurs build over 300 successful category-defining companies including: Admob, Alfresco, Arrowpoint, Baidu, BBN, Brightcove, ComScore, Etsy, Facebook, Focus Media, Gameforge, GlamMedia, Groupon, Imperva, Infinera, Interwoven, JBoss, Kayak, Macromedia, metroPCS, ModCloth, Playfish, Portal Software, QlikTech, Raptr, Real Networks, Redback Networks, Riverbed, Sohu.com, SunRun, UUNet, Veritas, Walmart.com, Webroot, XenSource, and Zimbra and others. For more information, visit the Accel Partners web site at www.accel.com.

About Abe's Market

Abe's Market is the go-to destination for natural products online, giving shoppers the opportunity to discover amazing green products, and the unique stories behind them. Sellers on Abe's Market include mom- and dad-preneurs, corporate execs, father-daughter teams, celebrity manicurists, and others who followed their dream to launch a green business. Abe's Market brings them together in a marketplace that combines the feel of a local, organic market with the selection you'd expect from an online superstore. Shop Abe's Market for everything organic – from gourmet marshmallows to barbecue rubs, messenger bags, BPA-free bottles, and more. www.AbesMarket.com

SOURCE Abe’s Market

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