Just a quick hit from the front lines of the e-commerce madness. One of New York’s big daily deal players, ideeli, just fired off an email on their Black Friday sales. The economy as a whole may be in the toilet, but that’s not showing up in their numbers.
- ideeli doubled revenue over last year for the Black Friday weekend.
- Visits to the site were up 30% over last year during the same period.
- Conversion rate was up 50%. Not only did more customers visit, they bought more.
- Over the Black Friday weekend, mobile traffic was double compared to same period last year. ideeli is now seeing over 20% in sales coming from mobile devices.
- Cyber Monday sales were up 36% as of 2pm yesterday.
The dark economic climate may in fact be contributing to ideeli’s success.
Clicks no Mortar
New York based e-tailer ideeli was just picked as the fastest-growing company on Inc Magazine’s annual 500 List, with an eye popping three years sales growth of 40,882 percent. Of course, if you looked at Betabeat’s traffic growth since we started back in March, we could claim a pretty impressive 300,000 percent growth, but hey, it’s all relative. Since Silicon Alley is home to both ideeli and Gilt Groupe, which pioneered the online flash sale, we wanted to chat with ideeli CEO Paul Hurley and get his take on how this rapidly evolving industry will look a year from now.
The Start-Up Rundown
DAVID HABER JOINS SPARK CAPITAL. “David has a interesting background, which included graduating from Harvard with a BioChem degree. Not a typical degree for a VC firm but we appreciated a different perspective and background than others at Spark,” the firm says on its blog. Mr. Haber previously was a founding associate at Locus Analytics, which he started before he graduated. His new title is VC n00b.
IT’S BEEN A WHILE SINCE WE HAD A HACKATHON! Er, not really. But Game Hack Day is this weekend at General Assembly, sponsored by NYhacker, the “hacker union.” “We’ve got a bunch of Arduinos, AR Drone-copters, great API demos (including open source game frameworks) and more,” says co-organizer John Britton. It’s expected to be as big as Music Hack Day, which produced no fewer than 72 demos.
Related, General Assembly co-founder and serious strategy gamer Brad Hargreaves is hosting a class Thursday on The Business of Gaming–check it out before you hack and you could have a start-up. Or, you can skip the entrepreneurship and get a job at OMGPOP, currently hiring for a game designer with “mad vision.” Okay!
New York has two of the biggest players in the flash sale sector, Gilt Groupe and Ideeli, both of which are growing fast and aiming at shoppers interested in bargains on high end designers.
Today Ideeli announced a $41 million raise, led by Next World Capital, nearly doubling the money they have raised so far. It plans to use the funds to, “Support its phenomenal growth trajectory through a variety of new initiatives, including category expansions, partnerships, technology enhancements, marketing campaigns, attracting key talent and enhancing the ideeli member experience.”
The new cash is about half of the roughly $80-100 million Gilt Groupe was rumored to have brought in during a raise this February.