With Y Combinator Demo Day kicking off tomorrow morning, startups in the current batch are hurrying to make a little news before they show off their recent growth to investors. The list includes Runway, Mono, Pangea and Flux.
Add Chums to the mix. Chums is a social shopping service that helps friends suggest products to their pals. And the startup has put together a total of $3.5 million across two pre-seed investments.
TechCrunch spoke with Noah Elion, one of Chums’ founders, about the round. He said that his company closed $1 million in December, later looking to raise another $1.5 million. Interest ran high for shares in the startup, so Chums wound up raising $1 million more than its latter target, for a combined total of $3.5 million.
The company declined to share the cap at which the funds, raised via a SAFE, were secured.
The $1.5 million target was based on the amount of capital that his company would need for the next 18 months, Elion said. The final sum came from Ludlow, Shrug, Contrary Capital and Fuel Capital, among other firms and individuals.
How did a company in the midst of Y Combinator manage to raise an old-school Series A round of capital despite launching its product just a few weeks ago? The background of its founding team helps some. Co-founder Dick Fickling was an early engineer at Honey, for example, (Read more...)