Hooch made an announcement today that it raised $5 million in seed funding right after it launched Hooch Black, its concierge service.
The basic subscription of $9.99 offered by the company gives you one free drink per day from a wide range of partner bars and restaurants. Hooch Black (which requires you applying for it, and which costs $295 per year) adds concierge service, hotel deals, and other perks on top. Although Hooch had already raised $2.75 million in two rounds of pre-seed, CEO and co-founder Lin Dai said it was essential to bring in strategic investors than it was to raise a lot of money: “We feel like the most significant thing for our business is the relationships.”
Even though Hooch had already raised $2.75 million in two pre-seed rounds, co-founder and CEO Lin Dai said it was more important to bring on strategic investors than it was to raise a lot of money: “We feel like the most important thing for our business is really the relationships.”
After all, he said the hospitality industry is controlled by “a few key companies,” so success is determined by working with those companies — it’s not a situation where someone can just beat you by outspending you.
The funding was led by Revelis Capital Group and Blue Scorpion Investments, with participation from Access Industries Holdings, Warner Music Group (Dai said that Hooch will be working with Warner Music on content, events and promotions), FJ Labs, Diesel CEO Stefano Rosso, former Comcast CTO Sree Kotay and others.
At the same time, the company is expanding its advisory board to include Bob Hurst (previously vice chairman of Goldman Sachs), Bonin Bough (former chief media and ecommerce officer at Mondelez) and Teymour Farman-Farmaian (previously CMO and CRO at Spotify and now managing director of Bitcoin wallet company Xapo).
Dai also said Hooch is preparing to launch its blockchain initiative this summer. What does blockchain have to do with free drinks? Well, Dai didn’t go into detail, but he suggested that by launching its own cryptocurrency token, Hooch could work with partners to create a “decentralized model for consumer rewards.”
Looking ahead, Dai said that Hooch might raise a “proper” Series A in 12 to 18 months, though he expects to reach profitability before then.
“At that point, we will have already built the moat around us with exclusive deals with all the top hospitality and experiential players,” he said. “That would be the appropriate time for us, if needed, to go back to a traditional round of funding.”
Source Tech Crunch