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Go with the Floww: A company matching startups, venture capitalists on merit

(BUSINESS NEWS) Floww has created an effective, modern way to raise millions of dollars for many startups and venture capitalists virtually.

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A tablet open to stocks and investments numbers venture capitalists use

As data-driven decision-making continues to become the standard across multiple industries, one company is bringing the philosophy to venture capitalists.

Floww, a marketplace designed to allow founders to pitch to investors based on merit, announced that it has raised a staggering $6.7 million to date in seed funding from angel investors and family offices. Current investors include Google’s head of FinTech in the United Kingdom Pip Baker, Angus Davidson, Ramon Mendes De Leon, and more. According to Floww, the money will be used to build out the platform and give startups access to over 500 VCs, accelerators, and angel networks.

“In an age of virtual meetings and connections, the need for coffee meetings on Sand Hill Road or Mayfair is gone,” said founder and CEO of Floww Marijn De Wever. “What we need now are global connections, allowing VCs to engage in merit-based investing using data and metrics.”

Floww charges a monthly fee to venture capitalists, accelerators, and other private equity firms to use their platform. Startups, on the other hand, have the option of using Floww’s services for free or enrolling in a premium model that allows their deal to be sent to multiple VCs. Floww then provides the startups with a suite of tools and materials to create a digital profile, with dynamic charts and tables that highlight a business’s potential to VCs. Floww also claims to handle deal-sourcing, CRM, and reporting for investors.

Floww’s claim is a bold one, especially considering that many VCs handle deal-sourcing and CRM in-house. The company also doesn’t explicitly say what constitutes “merit” in matching VCs with startups. Other than it clearly being a data-driven pairing, there aren’t any specifics as to what thresholds a startup will need to meet in order to match with a VC. The closest existing competitor to Floww is AngeList, a website also aimed at matching investors with various startups.

Whether or not Floww’s merit-based matching system will take off is still under review, but VCs willing to pay the monthly fee for Floww’s service will expect, at a minimum, that founders will have thought through these obstacles before looking for an investment.

Patrick Auger is a management consultant and entrepreneur who resides in Austin, Texas. He has a Bachelor of Arts in Business Management from Western Illinois University, and is the Founder and Principal Consultant at Auger Consulting Group, LLC. When he's not writing for The American Genius, he's writing about the business of Mixed Martial Arts for The Body Lock or learning how to cook, one burnt recipe at a time.

Business News

Pandemic claims another victim: Godiva to close brick and mortar stores

(BUSINESS NEWS) It’s your last chance to get your chocolate in-person – Godiva has decided to sell all of their North American locations at the end of March 2021.

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Picture of Godiva Cafe storefront, closing at the end of March.

Life is like a box full of chocolates. But, if you’re planning on looking for that box of chocolates at your nearest Godiva location, it will no longer be there by the end of March.

On Sunday, the company announced it is closing and selling all of its 128 brick-and-mortar stores in North America. Godiva retail stores in Europe, China, and the Middle East will remain open, however.

The retail apocalypse is one that began years ago, but the pandemic made it so much worse. And, Godiva, which has many locations inside malls, strongly felt the presence of declining foot traffic. According to USA Today, the company’s demand for in-person shopping “waned as a result of the pandemic and its acceleration of changes in consumers’ shopping behavior.”

With in-store sales decreasing and online sales on the rise, it comes as no surprise to see the company closing its big box stores.

“Our brick & mortar locations in North America have had a clear purpose since we first opened our doors in this market – to provide an in-person experience for consumers to enjoy the world’s most exquisite chocolates,” said Godiva CEO Nurtac Afridi in a statement. “We have always been focused on what our consumers need and how they want to experience our brand, which is why we have made this decision.”

“This decision was difficult because of the care we have for our dedicated and hard-working chocolatiers who will be impacted,” she continued. “We are grateful for all they have done to make wonderful moments for our consumers and spread happiness through incredible customer service and living our values and behaviors.”

The privately held company did not disclose how many employees it will lay off because of the closures.

In 2019, Godiva had big plans. The company announced an expansion plan to open 2,000 cafes. The first opened in New York in April 2019, but those plans are now a thing of the past.

While all North American stores are closing, including 11 in Canada, don’t despair chocolate lovers! You’ll still be able to purchase your favorite luxury chocolates on the company’s website, and the company’s grocery, club, and retail partners.

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Business News

Office Depot still open to buyers – just not you, Staples

(BUSINESS NEWS) This isn’t the first time the office giants have tried to combine, but Office Depot has some particular conditions if Staples wants to acquire them.

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Balding man in glasses at a whiteboard, using supplies from Office Depot.

In Staples’ third attempt to take over Office Depot, its acquisition offer was rejected by the ODP Corporation, Office Depot’s parent company. On January 11, Staples sent a letter to Office Depot’s board of directors offering to buy “100% of the issued and outstanding common stock” from its office-supply rival. At $40 per share, the deal to acquire Office Depot is over $2 billion.

“Staples believes that its all-cash transaction is a compelling value proposition for ODP’s stockholders that offers a high degree of certainty and is superior to the intrinsic, standalone value of ODP,” wrote Stefan Kaluzny, on behalf of the Board of Directors of USR Parent, Inc (Staples).

In response to Staples’ offer, the ODP corporation issued its own letter. “The Board has unanimously concluded that there is a more compelling path forward to create value for ODP and its shareholders than the potential transaction described in your proposal,” wrote ODP Chairman Joseph Vassalluzzo.

Although Office Depot refused Staples’ proposal, the company said it’s willing to make other alternative deals. “We are open to combining our retail and consumer-facing e-commerce operations with Staples under the right set of circumstances and on mutually acceptable terms,” wrote Vassalluzzo.

In the letter, Office Depot said it is willing to consider a joint venture where both companies “would equally share the risks and benefits.” The company would also consider a partial-sale of its retail and consumer-facing e-commerce operations.

If Staples is willing to come to either of those agreements, they will still require regulatory approval. But, Office Depot says their options offer a less “regulatory risk” by pursuing a retail-only transaction. And, will “help maintain competitiveness against nontraditional retailers and optimize ongoing choices for consumers.”

In 1997 and 2016, the Federal Trade Commission blocked the two companies from merging. Who’s to say it won’t happen again, even with the changes Office Depot is telling Staples to make in its offer.

“What we do not plan to do, however, is engage in a transaction that, as history has shown, would likely result in a prolonged and expensive regulatory review process with no guarantee of success, without a commitment that Staples is willing to bear this risk through a customary “hell or high water” provision,” wrote Vassaluzzo.

Until Staples is willing to come to an agreement with Office Depot that doesn’t include a full takeover, ODP’s answer is a firm “no”.

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Business News

Big retailers are opting for refunds instead of returns

(BUSINESS NEWS) Due to increased shipping costs, big companies like Amazon and Walmart are opting to give out a refund rather than accepting small items returned.

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Package delivery people holding deliveries. Refund instead of returns are common now.

The holidays are over, and now some people are ready to return an item that didn’t quite work out or wasn’t on their Christmas list. Whatever the reason, some retailers are giving customers a refund and letting them keep the product, too.

When Vancouver, Washington resident, Lorie Anderson, tried returning makeup from Target and batteries from Walmart she had purchased online, the retailers told her she could keep or donate the products. “They were inexpensive, and it wouldn’t make much financial sense to return them by mail,” said Ms. Anderson, 38. “It’s a hassle to pack up the box and drop it at the post office or UPS. This was one less thing I had to worry about.”

Amazon.com Inc., Walmart Inc., and other companies are changing the way they handle returns this year, according to a report by The Wall Street Journal (WSJ). The companies are using artificial intelligence (AI) to weigh the costs of processing physical returns versus just issuing a refund and having customers keep the item.

For instance, if it costs more to ship an inexpensive or larger item than it is to refund the purchase price, companies are giving customers a refund and telling them to keep the products also. Due to an increase in online shopping, it makes sense for companies to change how they manage returns.

Locus Robotics chief executive Rick Faulk told the Journal that the biggest expense when it comes to processing returns is shipping costs. “Returning to a store is significantly cheaper because the retailer can save the freight, which can run 15% to 20% of the cost,” Faulk said.

But, returning products to physical stores isn’t something a lot of people are wanting to do. According to the return processing firm Narvar, online returns increased by 70% in 2020. With people still hunkered down because of the pandemic, changing how to handle returns is a good thing for companies to consider to reduce shipping expenses.

While it might be nice to keep the makeup or batteries for free, don’t expect to return that new PS5 and get to keep it for free, too. According to WSJ, a Walmart spokesperson said the company lets someone keep a refunded item only if the company doesn’t plan on reselling it. And, besides taking the economic costs into consideration, the companies look at the customer’s purchase history as well.

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