BloomThat Losing $500,000 Per Month?

 

That is correct. That is not a typo. Investors gave these boys 7 million dollars to try and figure out a "new" way to sell fresh flowers.

Yes, that is not a type either. SEVEN MILLION dollars. This is the state of venture capital in Silicon Valley. I would like to think that venture capitalist outside of the San Francisco bubble have some better choices out there?  Does it really make any sense to fund people that have never worked in the flower business or even know the basics? 

This is why few, if any, of the venture-backed companies of the last few years will survive. None of them will be able to figure out a cash flow positive business model before they burn through all of this venture money.

Many of us have to raise capital at some point, but the burn rate of some of these start ups is just off the charts and not sustainable.

If they had bothered to ask us how to deliver flowers in LA, we could have saved them quite a bit!

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So the Queen is selling flowers now?

Look for Queen Latifah at your local supermarket soon. 

In what is a growing trend, celebrities are lending their names to flower ventures to help sell more products to more flower consumers. 

While this licensed lined of arrangements (farm bouquets really) is designed for the mass market, there is considerable upside in having flowers as a lifestyle product gain greater acceptance into the U.S. mass market. 

The more people buying flowers every day, the better for all involved in the flower business. Remember that in Europe the per capita consumption of flowers is many times higher than it is in North America. 

Who thought Americas would pay $5 for a cup of coffee 25 years ago? No one did. Not 7-Eleven, not Dunkin Donuts...not until Howard Schultz came along and started Starbucks. The coffee market is now ten times larger thanks to him. 

A rising tide lifts all ships. Embrace the newcomers, the more the better!

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