Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
Move Loot, which operates in San Francisco, says it will use the funds to expand into at least two more cities by the end the year.
Move Loot, a marketplace that lets consumers buy and sell used furniture online, has raised $2.8 million in a seed round of funding co-led by First Round Capital and Index Ventures. Other participants include Google Ventures, SV Angel and Y Combinator.
The online marketplace, which operates in San Francisco, says it will use the funds to expand into at least two more cities by the end the year, says Bill Bobbitt, Move Loot’s co-founder and CEO.
"We're incredibly happy with how much progress we've made in San Francisco—there is no shortage of people looking for an easy and affordable furniture solution," says Bobbitt.
Move Loot, which recently moved to a warehouse roughly six times the size of its original unit, says it is also investing in technology, such as inventory management and scheduling tools, to help it improve supply chain processes.
To sell on Move Loot, consumers upload a photo of their furniture and schedule a free pickup. Move Loot then collects the furniture, cleans it if necessary, professionally photographs the items and posts the images online. The site follows a consignment model, with sellers getting half of the selling price. Items that don't sell are eventually donated to local charities.
Buyers choose what they want, pay online and schedule next-day delivery to their doorstep via Move Loot movers. Move Loot says it is developing a playbook that enables it to craft repeatable processes for geographic expansion.
"We've learned a lot during our eight months of operation," Bobbitt says. "There is still so much to learn that will only be catalyzed by comparing findings between cities."