In 2018 there were a record number of venture capital and private equity deals in the supply chain industry. B-Stock was one of these deals: in June 2018, B-Stock announced a $65 million investment from Spectrum Equity, a leading growth-oriented private equity firm. This new partnership will help B-Stock tackle the challenges that come with rapid growth and larger scale.
At the Reverse Logistics Association Conference & Expo held in Las Vegas, February 2019, B-Stock’s founder and CEO, Howard Rosenberg, spoke on a panel to discuss private equity investment in the supply chain space and the increased interest among investors in recent years.
B-Stock CEO on Using Investment Money
B-Stock was founded in 2008 with financing from a couple early stage venture investors, but it was years later before investor interest in the space really started taking off. Howard credits this in large part to the growth of e-commerce, its increasing share of retail, and the much higher return rates that come with it. As he described it, these factors conspired to create, “a tsunami of consumer product returns entering the secondary market.” This has driven demand for services across the reverse supply chain, including B-Stock’s liquidation market.
During the RLA panel, Howard was asked about the benefits of taking on a private equity investor at this stage of B-Stock’s life. He replied, “Having a partner like Spectrum behind us opens many new opportunities, including making strategic acquisitions and looking at launching new initiatives related to our core services. Additionally, we have more flexibility to invest in the services we already provide to our customers; basically, it gives us an opportunity to swing a bigger bat.”
When it comes to partnering with B-Stock’s investors, Howard said it will “provide an opportunity to gain access to expertise. We get to learn from those who have done this before—taking a company from 140 employees to 500 employees, and beyond—and it’s a great advantage to have that expertise as part of the company.”
The Team is the Key
“The key to our success has been the team,” stated Howard when the panel discussion turned toward how to create a successful company culture. “I started with people I knew, who have similar outlooks and approaches. And that helped create the company culture I wanted from the beginning. A positive, passionate culture that has become a selling point in hiring new people. People who really believe in what we are doing and are excited about creating a service that adds real value to our customers’ businesses.” When asked if he had any second thoughts about taking on venture and private equity investors over the years he responded: “I’ve been very happy with how things evolved for B-Stock. I have no regrets. I’m very happy with where we are today.”
B-Stock would like to talk with you about just how easy it is set up a private, auction marketplace to sell returned, excess, and other liquidation inventory. This technology-driven approach will increase recovery rates on consumer returns and will keep warehouse inventory moving.
We also invite you to review our case studies and our suite of private marketplaces that we operate for 9 of the top 10 U.S. retailers and hundreds more.