H.BLOOM Completes $2.1 Million Round Led by Battery Ventures

H.BLOOM has completed a $2.1 million series A round led by Battery Ventures. H.BLOOM’s existing investors also participated in the round. New York-based H.BLOOM is a locally-focused flower subscription service which provides flowers at affordable prices. Earlier this year, the company raised $1.1 million from angel investors. Battery Ventures is a VC Firm that manages nearly $4 billion in committed capital.

PRESS RELEASE

Battery Ventures today announced it has led a $2.1 Million Series A investment in H.BLOOM, Inc., (http://www.hbloom.com), the first locally-focused flower subscription service, with participation from H.BLOOM’s existing investors. Earlier this year, H.BLOOM raised $1.1 million from prominent angels in New York. H.BLOOM will apply this latest round of capital to focus on three important areas: to continue to build a first class team; to invest in sales and marketing to introduce its service to more customers; and to expand to a second market – Washington, D.C.

As the first online, locally-focused flower business, H.BLOOM delivers designer-quality, hand-tied bouquets, to both residential and business customers, for approximately 70 percent off traditional floral boutique pricing. By working directly with premium growers around the globe, H.BLOOM gains access to more extraordinary stems and can deliver those flowers to its customers five to seven days sooner (from the time flowers are cut) than traditional retailers.

“H.BLOOM has taken a fresh approach to a large, stagnant market,” said Brian O’Malley, Partner, Battery Ventures. “As part of our eCommerce practice, we seek out differentiated offerings that serve passionate consumers with strong lifetime value. In the first six months of business, H.BLOOM has rapidly demonstrated these three key principles.”

H.BLOOM eliminates excessive costs and unpredictable service, which can often plague flower lovers who regularly purchase for themselves, their home or their business. The company’s hyper-local approach ensures that the entire purchasing process – from arrangement to delivery – is a seamless experience for consumers. Subscriptions are configurable based on collection type, frequency of delivery, and term length.

“The flower industry is saddled with unnecessary cost,” co-founder and CEO, Bryan Burkhart said. “Retailers have to pay for expensive store-fronts and an overwhelming percentage of flowers that spoil before a customer can purchase them. With no retail footprint and the predictability of subscriptions, we know exactly what flowers to order and can pass on the savings to our customers.”

H.BLOOM currently services Manhattan and parts of Brooklyn, Long Island City, NY, and Hoboken and Jersey City in New Jersey. The company plans to launch in Washington, D.C. later this year.

About Battery Ventures

Since 1983, Battery has been investing in technology and innovation worldwide. The firm partners with entrepreneurs and management teams across technology sectors, geographies and stages of a company’s life, from start-up and expansion financing, to growth equity and buyouts.

Battery has supported many breakthrough companies around the world, including: Airespace (acquired by Cisco), Akamai Technologies, Inc. (NASDAQ: AKAM), Bladelogic (acquired by BMC Software), Cbeyond (NASDAQ: CBEY), Healthvision (acquired by Lawson), LIFFE (acquired by Euronext), Neoteris (acquired by Netscreen), Nova Analytics (acquired by ITT) and Omniture (acquired by Adobe). Its current digital media portfolio includes firms such as Angie’s List, Bazaarvoice, BlueKai, Exact Target, FashionStake, Freewheel, Gogobot, Groupon, Jelli, Live Intent, Lotame, Serena & Lilly, and SafetyWeb.

Battery’s venture capital investments range from as little as a few hundred thousand dollars in seed and early stage financing, to $50 million or more for late stage/expansion deals. From offices in Boston, Silicon Valley and Israel, Battery manages nearly $4B in committed capital, including its current fund of $750M. For more information, visit www.battery.com. Follow us on Twitter at @BatteryVentures.

About H.BLOOM, INC.

H.BLOOM (www.hbloom.com) launched in February 2010 to provide luxurious flowers at affordable prices. Delivering directly to the home or business, H.BLOOM makes it convenient and easy to regularly enjoy extraordinary flowers. Currently delivering to Manhattan, Long Island City, Hoboken, Jersey City and parts of Brooklyn, H.BLOOM offers a variety of different collections for consumer subscription, a customized corporate service, traditional one-time gifts and weekly special deals. H.BLOOM is expanding to Washington DC by 2011. Follow H.BLOOM on Twitter at @_HBloom and on Facebook at HBloom.com.