Key Takeaways
- • Gunnar Lovelace and co-founder Nicholas Green built Thrive Market after being rejected by 50 venture capital firms, then changed their fundraising strategy and turned to individual supporters who shared their health and wellness vision.
- • Thrive Market raised $8 million from more than 100 individuals in 2014, according to media reports, before institutional rounds followed.
- • Institutional rounds included $30 million in July 2015 led by Greycroft Partners (per the Los Angeles Times) and $111 million in June 2016 led by Invus (per FoodNavigator), bringing total funding to more than $160 million by October 2017 (per Entrepreneur).
- • Thrive Market operates a membership-based online retailer of natural and organic groceries and home and beauty products, offering members prices below traditional retail.
Summary
Thrive Market, an online grocery business focused on natural and organic products, was founded on the premise that healthy food should not be limited to customers who can afford premium prices. Co-founders Gunnar Lovelace and Nicholas Green initially funded the business themselves while approaching venture capital firms, and Lovelace has said that 50 firms rejected them. Investors questioned whether the founders could compete in the grocery industry and why they believed they could disrupt it.
Rather than abandon the concept, the founders changed their fundraising approach and turned to individuals who supported their vision of making healthier food more affordable. In 2014, the company raised $8 million from more than 100 individuals, according to media reports. That backing allowed Thrive Market to advance its online grocery operations without relying solely on traditional venture capital.
The company's institutional fundraising followed. In July 2015, Thrive Market raised $30 million in a round led by Greycroft Partners, according to the Los Angeles Times. In June 2016, it secured $111 million in a round led by investment firm Invus, as reported by FoodNavigator. The capital was intended to expand infrastructure, marketing and private-label product offerings. By October 2017, Entrepreneur reported that Thrive Market had raised more than $160 million in total.
Thrive Market's model is membership-based, allowing members to purchase natural and organic groceries, along with home and beauty products, at prices below traditional retail rates.
Rather than abandon the concept, the founders changed their fundraising approach and turned to individuals who supported their vision of making healthier food more affordable. In 2014, the company raised $8 million from more than 100 individuals, according to media reports. That backing allowed Thrive Market to advance its online grocery operations without relying solely on traditional venture capital.
The company's institutional fundraising followed. In July 2015, Thrive Market raised $30 million in a round led by Greycroft Partners, according to the Los Angeles Times. In June 2016, it secured $111 million in a round led by investment firm Invus, as reported by FoodNavigator. The capital was intended to expand infrastructure, marketing and private-label product offerings. By October 2017, Entrepreneur reported that Thrive Market had raised more than $160 million in total.
Thrive Market's model is membership-based, allowing members to purchase natural and organic groceries, along with home and beauty products, at prices below traditional retail rates.
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