SAN FRANCISCO — Disco (formerly known as co-op commerce), is getting down with a $20 million Series A funding round led by Felicis Ventures with participation from Shopify, Sugar Capital, Bessemer Venture Partners, Indicator Ventures, RiverPark Ventures, and several others, including Ankur Nagpal’s Vibe Capital, Packy McCormick’s Not Boring Fund, and a other direct-to-consumer (DTC) founders and operators.
Disco was created to help independent brands limit their reliance on big tech platforms for acquiring customers by working together. Disco serves many of the largest merchants in DTC across a variety of categories, including Parade, Lovevery, Made In, Girlfriend Collective, Faherty, Rhone, Caraway, Milk Bar and many more.
Disco has raised $26M to date and will use the fresh round of capital to continue to create a flourishing ecosystem of brands and innovative products as well as grow the team considerably. The company, now 27 people strong, anticipates scaling to 75 by year end, including engineers, product specialists, marketing experts, customer success, and sales.
“Unlike centralized marketplaces where merchants have limited visibility into their customers, we are building a future where independent brands can join forces and benefit from their collective power,” said Conner Sherline, Founder and CEO of Disco. “By giving them the tools and data to work together across partnerships, marketing, and merchandising, Disco is unlocking a massive opportunity for merchants to attract and retain new customers at scale.”
As more and more businesses move online, costs of acquiring customers on digital channels have skyrocketed, resulting in brands desperately searching for new ways to drive awareness and gain new customers.
Disco believes that uniting the millions of independent brands in the eCommerce ecosystem and giving them tools to work together across partnerships, data, and merchandising is the silver bullet that can solve for the massive hurdles brought into play across targeting and acquisition.