Burrow Raises $25M to Disrupt the Furniture Industry

Burrow Secures $25 Million in Series C Funding

Burrow, initially recognized for its innovative modular sofa, is expanding its vision to become a comprehensive home furnishing provider. The company has recently announced the successful completion of a $25 million Series C funding round.

Early Beginnings and Product Diversification

The company first gained traction after participating in the Y Combinator accelerator program in 2016. Its initial focus was on creating sofas designed for easy relocation and adaptability to diverse living arrangements.

Today, Burrow’s offerings extend beyond sofas to encompass a wider range of home goods. This includes armchairs, ottomans, tables, rugs, lighting solutions, and various other home accessories.

Notably, the company introduced 19 new products in the previous year alone, featuring a modular shelving system as a key addition.

A Research-Driven Approach to Expansion

According to co-founder and CEO Stephen Kuhl, Burrow’s expansion strategy is deeply rooted in thorough research. This involves analyzing customer surveys, conducting focus groups, and examining online search data.

“Our primary objective is to align the most significant customer requirements with the most promising market opportunities,” Kuhl explained. “Upon identifying a suitable category, we leverage our research to develop optimal product versions tailored to our customer base and to create a superior overall customer experience.”

Kuhl further stated that every product launched by Burrow to date has surpassed initial projections, highlighting the effectiveness of their customer-focused and research-driven design methodology.

Significant Revenue Growth and Pandemic-Related Trends

Burrow reported substantial triple-digit revenue growth in the past year, and anticipates this positive trend will continue throughout 2021.

Kuhl also indicated that the startup is capitalizing on broader trends accelerated by the recent pandemic. These include the increasing adoption of e-commerce, a heightened emphasis on home improvement, and a growing number of people relocating to suburban areas – often accompanied by increased furniture purchases.

“Over the last 18 months, we’ve introduced innovative products across the entire living room furniture spectrum,” he noted. “In 2021, we will continue this expansion to encompass furnishings for every room within the home.”

Funding Details and Future Plans

With this latest funding round, Burrow’s total funding now reaches $55 million. The Series C round was spearheaded by Parkway Venture Capital, with Managing Partner Gregg Hill joining Burrow’s board of directors.

Additional investors in this round included NEA, Red & Blue Ventures, Winklevoss Capital, and Michael Seibel.

The newly acquired funds will be allocated towards the launch of new products, as well as investments in operational improvements and the development of Burrow’s international supply chain.

“Parkway actively seeks brands that are redefining modern living and proactively innovating for the future,” stated Hill. “We recognized the potential of Burrow’s business model early on, having participated in their Series B round, and are confident in their continued success.”