H.BLOOM raises $2.1M in Series A round

The online floral delivery service is backed by Battery Ventures

Updated 11/5/2010, 11:52 AM: H.BLOOM has raised $3.2 million in total funding and the round was a Series A round, not seed funding.

I heard the best unintentional pun this morning.  H. BLOOM, an online floral delivery service, just raised $2.1 million in SEED funding.  Ha! (Only it turns out they didn't raise seed funding...it was a Series A round, which kills the pun, but it was still funny.)

The New York-based startup, which launched in February, raised $1.1 million from several angels in New York earlier this year, bringing the company’s total funding to $3.2 million.  H. BLOOM offers a unique service: a subscription-based, online only floral delivery service.  The company has taken a note from Netflix and done away with the expenses that naturally come with maintaining a brick-and-mortar storefront, thereby allowing H. BLOOM to offer professionally designed boutique-style arrangements for 70% off their normal retail price. 

Prices vary as residential customers can customize their subscriptions to select the type of arrangement they want (packages range from $35 to $85), whether they want their flowers delivered weekly, biweekly, or monthly, and how long they want to maintain the subscription (1-12 months or ongoing).

Customers who don’t want to commit to a full subscription also have the option of making a one-time purchase, whether as a gift or for themselves, for a higher price.  The company also offers weekly deals and customized corporate services.

“The flower industry is saddled with unnecessary cost,” said H. BLOOM co-founder and CEO, Bryan Burkhart, in the company’s announcement. “Retailers have to pay for expensive store-fronts and an overwhelming percentage of flowers that spoil before a customer can purchase them. With no retail footprint and the predictability of subscriptions, we know exactly what flowers to order and can pass on the savings to our customers.”

For now, the company is only operating in the New York City area, but plans to use the funds raised in this round to help its expansion to the Washington D.C. area.

“The funds will be used to continue building a first-class team, market our service to new consumers, and expand into new cities, of which Washington is the first. We plan to expand into more US cities in the next several years,” said Burkhart via email.

Since launching in February, the company has fulfilled over 2,300 subscription deliveries and has served 50 corporate customers.  H. BLOOM takes a hyper-local approach to the floral business and claims to be able to deliver flowers 5 to 7 days sooner than traditional retailers.

There are, of course, other online flower delivery services (such as ProFlowers.com), but H. BLOOM differentiates itself based on the premium quality of its flowers and arrangements, and the fact that it’s subscription service allows it to operate more smoothly and regularly.

This Series A round of funding was led by Battery Ventures, with participation from existing angel investors. 

“H.BLOOM has taken a fresh approach to a large, stagnant market,” said Brian O’Malley, Partner at Battery Ventures, in a prepared statement (I don't know if that pun was intended). “As part of our eCommerce practice, we seek out differentiated offerings that serve passionate consumers with strong lifetime value.

Image source: hbloom.com