This E-Commerce Startup Slashed Its Valuation From $1 Billion To $50 Million: More Details Inside

E-commerce startup OpenStore has reportedly slashed its valuation by 95% to $50 million as it looks to narrow its focus.

According to a Bloomberg report, OpenStore’s valuation cut comes at a time when the company is raising $15 million in a Series C funding round.

Existing investors, including Khosla Ventures Managing Director Keith Rabois and Atomic, run by Jack Abraham, are reportedly participating in the round.

OpenStore was co-founded by Rabois and Abraham in 2021, during the second wave of the COVID-19 pandemic. The e-commerce startup’s business model initially involved acquiring Shopify Inc.’s (SHOP) sellers.

However, it will now narrow its focus on building up the menswear brand Jack Archer. OpenStore acquired the brand in 2022 for under $1 million. According to the report, the e-commerce startup helped Jack Archer increase its revenue from $1 million to $10 million in just nine months.

The Miami-based company has also tapped Emma Crepeau to head Jack Archer as its CEO. Crepeau previously served as the chief growth officer of apparel company Rhone.

According to the report, Pitchbook data indicates that venture capital investments in the e-commerce sector have declined to $9 billion in 2024, down from $44 billion in 2021.

OpenStore’s move to trim its valuation is not unique, either – Pitchbook data shows nearly a quarter of the deals in the U.S. in 2024 were either flat or down.

Meanwhile, Shopify’s stock has surged more than 17% year-to-date, and over 110% in the past 12 months. Stocktwits data shows retail sentiment around the stock was in the ‘bullish’ territory.

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