When Daniele Perito, Marcelo Cortes, Max Rhodes and Jeffrey Kolovson founded Faire in 2017, they were driven by a shared vision: to revolutionize the wholesale market and empower local retailers and makers.
Their goal was to eliminate the inefficiencies of traditional wholesale models and provide a platform that could support the growing shop local movement and the maker revolution. Little did they know that their vision would quickly materialize into a significant business success.
The Founders
- Max Rhodes
- Marcelo Cortes
- Daniele Perito
- Jeffrey Kolovson
Before founding Faire, they all worked at Square, between 2013 & 2016. Jeffrey Kolovson co-founded Faire, but left, and then went back.
From Concept to Creation
The journey of Faire began with the exploration of several ideas, from car insurance for low-income immigrants to dental drill sales. However, none of these ideas resonated as strongly as the concept of a risk-free wholesale marketplace. The founders quickly realized the immense potential of this idea when they saw the enthusiasm of retailers who were eager to experiment with new products without the fear of unsold inventory.
Max Rhodes, co-founder and CEO of Faire, recalls how the concept immediately struck a chord with retailers. Their faces lit up at the idea of freeing themselves from the anxiety of upfront capital and unsold merchandise. Even before any code was written, orders were being placed based on the mere presentation of the concept.
Major Milestones and Rapid Growth
Faire has achieved several significant milestones since its inception:
- Securing $100M in financing from notable investors such as Lightspeed Venture Partners, Y-Combinator, and others.
- Amassing over 15,000 active stores on the platform.
- Enlisting more than 2,000 makers to fulfill orders.
- Reaching $100M in run rate sales.
Faire’s data-driven approach to wholesale purchasing has been a game-changer, increasing sell-through rates by 75% over the year and significantly reducing inventory risk for retailers. Their viral loop, called Elevate, has further accelerated growth, as makers invite retailers to join the platform and benefit from its comprehensive services.
Overcoming Challenges
Despite early successes, the founders faced numerous challenges. The first nine months involved constant iteration and questioning the viability of their concept. The turning point came when they decided to offer Net 60 payment terms and free returns, which significantly boosted their growth.
However, January came around (a peak period for returns) and brought a shed load of returns and non-payments. The founders responded by analyzing and tweaking marketplace rules, reducing return rates by 75% and defaults by almost 90% within six months.
Here's a picture of some of the returns, piled high!
Looking Forward
The story of Faire is an emotional rollercoaster of building a startup, marked by significant highs and challenging lows.
Faire's mission is to empower entrepreneurs to pursue their dreams. With the support of their dedicated team and a growing community of retailers and makers, Faire is poised for continued growth and success. The journey is far from over, and the future holds even more opportunities for innovation and expansion!