Level Equity invests US $ 23 million in SevenFifty
Level Equity has invested US $ 23 million in US company SevenFifty, the largest online B2B marketplace for the US $ 1.4 trillion alcoholic beverage industry.
The news is an important step towards acquiring or publicly listing the company through an IPO, said SevenFifty co-founder and CEO Aaron Sherman. However, he insisted that there was no specific timeline for this to happen.
The Series B investment also indicates that the San Francisco and New York-based investment firm is happy with the progress SevenFifty is making. In 2016, Level Equity also invested in the growing company during its first 2016 funding cycle.
“When we launched in 2011, we started (using staff funding) for the first year or two,” Sherman said. Although it is an important financial partner, Level Equity is not involved in the day-to-day management of the business, he said.
Sherman said SevenFifty currently has no plans for growth through acquisition. Instead, the infusion of US $ 23 million will be used to continue growing the business, which he says has increased revenue by nearly 100% year-over-year in 2020.
Today, it claims to be the largest online B2B marketplace for the alcohol trade with over 90,000 restaurant and retail buyers using the site in 46 states and Ontario, Canada.
Although SevenFifty is headquartered in New York City, Sherman says the company inadvertently “beaten Covid”. “We left our New York office in December 2019 and now have around 100 employees working in around 20 different states.”
When announcing the funding, Sherman said, “SevenFifty’s mission is to power a connected supply chain for alcoholic beverages, and with this new funding, we are unlocking the ability to accelerate our growth and respond to requests from our partners in all industry categories. ”
“We have provided exceptional support to domain experts who develop critical technologies in complex and fragmented industries, especially as these industries are undergoing secular shifts towards technology adoption,” said Ben Levin, Founder and co-CEO of Level Equity.
“We have been impressed with SevenFifty’s ability to expand its footprint over the past few years, increasing the value of the platform beyond simple restaurant and retail buyers and earning the trust of producers, importers and distributors working in commerce, ”he added.
Level Equity manages over US $ 1.7 billion through a series of committed long-term investment partnerships.