Hux [Venture Atlanta 2015] is on a mission to grab a share of the $800 billion local service industry defined as services that include home cleaning, lawn care, pet-care and other hyperlocal services. The startup provides a technology platform that enables local service providers to create and run their own micro-business much like Etsy does for sellers of handmade products.
Aided by introductions from Venture Atlanta alum CEOs Marc Golin and Adam Mangone, the startup closed a $1.25 million round in February, which isn’t particularly remarkable in of itself, but is significant considering that Hux, a B2C startup, secured an Atlanta-based lead investor whom they met at the 2015 Venture Atlanta conference.
Does this signal interest in B2C startups in Atlanta by local investors or just an anomaly You be the judge as Hux CEO and co-founder Stanley Vergilis shares his funding journey. Share your opinion in the comments section.
Raising West Coast money from 3,000 miles away isn’t easy. There’s no infrastructure. Very few people can make introductions to investors and even fewer can provide meaningful advice.
For Hux, strong traction opened doors to entrepreneurs in the Bay Area who were intrigued. We grew to a $1mm+ run rate on a $20K investment and they wanted to know how. That intrigue evolved into introductions and meaningful help.
Hux investor Adam Mangone, Roadie CEO Marc Gorlin and Chris Morton, president at San Francisco-based BlockScore were my A-Team. With their help I took two trips to the Bay Area and spoke with dozens of VCs. Despite some interest, we didn’t have the “aha” moment we were looking for.
When I returned from my second trip, I reached out to Teresa Dau with Dau Group, she saw me pitch at Venture Atlanta. She was surprisingly decisive and handed us an entrepreneur friendly term sheet with terms that were more typical of those offered in the West Coast. We had a deal.
Deal in-hand, I went back to Silicon Valley determined to find the right investor to close out our round. Morton introduced me to Adam Draper with whom I took a call. On the call, Adam didn’t seem very interested until I told him we were profitable. He immediately introduced me to Billy Draper on the investment team at Draper Associates.
I met with Billy and we clicked. He had a clear understanding of our concept and a genuine demeanor. He scheduled a meeting with Tim Draper and within hours, the team at Draper Associates offered double the amount needed to close the round.
MARCH 2016 NEWSLETTER
- VOICES: How Hux Raised a $1.25 M A Round by Stanley Verigilis
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