What is Shop Circle?
Q: Can you give us a brief introduction about yourself and your company, Shop Circle?
A: I’m Luca Cartechini, co-founder and CEO of Shop Circle. We launched the company three years ago. Before that, I worked in banking at Jefferies, covering internet stocks like Ocado, Boohoo and Asos. After my stint in investment banking, I became a venture capitalist, focusing on seed and series A investments in the B2B space.
My co-founder, Gian Maria, and I started Shop Circle with a clear vision: to build an all-in-one software platform for e-commerce brands, aiming to be the Microsoft of e-commerce. We offer a comprehensive range of products in the software space, addressing various industry needs such as shipping, delivery, inventory management, digital downloads, upselling, and cross-selling. Currently, we serve about 100,000 brands globally, with 60% of our clients in North America. The core idea behind Shop Circle is to streamline the software needs of brands, who often grapple with managing multiple software from different providers. We provide a centralized solution with a unified onboarding process and customer journey.
Why Founders Factory?
Q: What motivated you to join Founders Factory?
A: Joining Founders Factory wasn’t about funding, as we had already raised a round, and the financial aspect was secondary. The main attraction was the support in expanding our network and the valuable feedback from experts. Founders Factory played a crucial role in introducing us to the right people and investors, helping us extend our reach, especially as first-time founders. We were also paired with Reckitt, a listed consumer goods company, and found great synergies with their team, particularly with a few individuals.
Ultimately, it was about broadening our network and finding the right people to work with. We also had the opportunity to interact regularly with Brent Hoberman, the founder of Founders Factory, who has since become a friend and was very supportive from the start. Additionally, getting free office space in the early days of our startup was a great benefit.
Founders Factory Application Process
Q: Can you describe the application process for Founders Factory?
A: It began with an introduction from a friend, followed by a process similar to what you’d experience with a VC. This included a series of calls, a deep dive, an investment committee review, and the submission of various materials. The process was relatively smooth, taking about one month. After their offer, we considered it and eventually went ahead with it.
Q: What do you think made your company stand out to get into Founders Factory?
A: I believe the key factor was our team. We had a strong profile, with my background in e-commerce and VC, bringing financial and strategic expertise, and my co-founder’s operational strength from his experience as a category manager at Amazon. This synergy created a strong team-market and team-product fit.
Additionally, having a clear vision, addressing a large market, and solving a real problem were crucial. In early-stage startups, the team and timing are the most significant factors, as products often evolve and change over time. Also, having a substantial capital commitment from other investors made our proposition relatively low-risk for Founders Factory.
The Founders Factory Program Experience
Q: What was the Founders Factory program like once you joined?
A: Founders Factory offers a highly customizable program, which is a key differentiator from other accelerators. Participants join at various times of the year, and the program is tailored to their specific needs. For us, the focus was on website feedback, branding, and fundraising from institutional VCs. The program managers at Founders Factory designed services to suit our requirements, providing us with a central team and resources that we could access as needed. It’s like receiving a toolkit, and how you use it to accelerate your company’s growth is up to you.
The program typically lasts about six months, during which you also get office space. Founders Factory has shared resources, and your program manager acts as your main point of contact. They help you access resources as per your needs. For us, the most impactful aspect was the support in fundraising. We engaged in growth marketing, SEO, and other areas, but expanding our fundraising network was very important.
Q: Did you get funding from Founders Factory?
A: Founders Factory provides up to £250,000, with a fixed split between services and cash.
Achieving Milestones and Overcoming Challenges
Q: What significant milestones did you achieve during the program?
A: The most significant milestone we achieved during the Founders Factory program was raising our institutional seed round. The round was four times oversubscribed, leading us to turn down several investors. Founders Factory played a crucial role in this achievement, providing numerous introductions and support, making it an ideal way to complete the program.
Q: Did you encounter any challenges during your time with Founders Factory?
A: No, we didn’t really face any challenges during our time with Founders Factory. Our experience with them was quite smooth. We worked well with a few individuals there, and everything progressed in the right direction. We successfully grew our team, built the company, and raised a seed round that was massively oversubscribed. We even secured a couple of tier-one investors from the US through introductions made by Founders Factory. So, overall, our journey with them was very smooth and productive.
Shop Circle’s Current Status and Future Goals
Q: What is the current status of Shop Circle?
A: Shop Circle has been growing rapidly. Earlier this year, we completed one of the largest Series A funding rounds in Europe. Our team now consists of 160 people, indicating significant growth. We are growing at about 350% year-over-year and we are currently the largest operator of e-commerce software in the Shopify space.
Q: What are the upcoming milestones and goals for Shop Circle?
A: Looking ahead, we plan to raise more capital next year to support our continuous growth. A key focus for us is to remain product-obsessed, striving to develop the best possible tech suite in the market. Our aim is to centralize various tools under one offering and establish ourselves as the premier operator in e-commerce software. Maintaining a positive and stimulating company culture is also crucial as we continue to expand our team and reach.
Q: Can you share some insights about your growth channels?
A: We have a dedicated growth team working on our products, employing a range of tactics including SEO, email automation, paid ads, partnerships, and referral programs. We’re also involved in special projects to launch new initiatives. Currently, we’re launching a revenue financing initiative, offering liquidity to our 100k clients. These varied approaches help us address different aspects of growth and market engagement.
Final Advice
Q: Do you have any tips for founders considering Founders Factory?
A: My advice for founders considering Founders Factory is to manage expectations. While an accelerator like Founders Factory can significantly aid your progress, the main work still lies with you. An accelerator is a tool to help you move faster, but the journey from point A to point B is yours to navigate. So, I recommend approaching it with realistic expectations and making the most out of the resources and support offered. They were definitely helpful for us, and I’m confident they can be very beneficial for others as well.