Seattle startup Bean Field raises $2.4M as pandemic fuels demand for specialty espresso at dwelling

(Bean box photo)

New financing: Bean Box, the Seattle startup that supplies premium coffee from independent roasters, has raised $ 2.4 million in new funding as part of a Series A round.

The Company: Bean Box was founded in 2014 by Matthew Berk and Ryan Fritzky and offers coffee products from 40 world-class small-batch roasters to make these items available to more people at home. The startup seeks to bring coffee culture to people on a large scale by using human and algorithmic methods to select coffee that is tailored to customers’ tastes.

The pandemic has basically turned our investment hypothesis on its head. This demand for specialty coffees would shift from retail to home.

Growth: Berk, the CEO, said year-over-year growth is approaching 200% and Bean Box’s gross margin is now over 40%. The company’s subscriber base more than doubled over the past year and is now growing even faster, Berk said.

Bean Box, which has 20 employees, adds about two roasters per month and is expanding beyond the Pacific Northwest with new partners such as Klatch Coffee of Los Angeles and Dragonfly Coffee of Boulder, Colorado.

Bean Box also has an exclusive relationship with Cup of Excellence, a leading specialty coffee competition, and buys winning coffees at auction a few times a year. Berk said in some cases that Bean Box is the only coffee company in the US offering these microlots.

Effects on the pandemic: The company’s biggest challenge over the past year has been adapting to changes in the operational landscape, including limiting people and space to maintain security, as well as supply chain issues.

“Fortunately, we’ve invested in automation, fulfillment technology, and our supply chain over the past five years, and it has really paid off for us,” said Berk. “As more people work from home, the demand for great coffee has skyrocketed and our subscriber base has grown tremendously.

“The pandemic has basically turned our investment hypothesis on its head,” added Berk. “This demand for specialty coffees – the fastest growing segment of the US coffee market – would shift from retail to private.”

Investors: Kirby Winfields Ascend.VC, a longtime Bean Box supporter, led the round, which was attended by a number of other current investors, mostly individuals. Bean Box previously raised $ 3.2 million in seed capital.

The startup will use the new money for strategic growth – invest in its coffee subscription business and hire executives in marketing, engineering and operations.

“We had a profitable 2020,” said Berk. “After being very disciplined in building the business, we concluded that it would be tax irresponsible not to use growth capital at this point. It’s a great place. “

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