Brian Lee

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Skubana raises $5.4M for its e-commerce operations software

Skubana, a startup promising to help e-commerce business manage what can be a dizzying array of logistical challenges, is announcing that it has raised $5.4 million in Series A funding.

The round was led by Defy Partners, with participation from Advancit Capital and FJ Labs. Early Skubana backer Brian Lee — who co-founded The Honest Company, ShoeDazzle and LegalZoom, and is also involved as a Defy Sage — is joining Skubana’s board of directors.

“When I first launched Shoedazzle and The Honest Company, one of our primary challenges was understanding how our products performed across channels,” Lee said in a statement. “Skubana solves a core problem that thousands of brands face and no other competitor solves well.”

CEO Chad Rubin said these were issues he faced when he started his own e-commerce business, Crucial Vacuum, a decade ago. In fact, Rubin’s co-founder and CTO DJ Kunovac (who was working at McKesson health IT) recalled visiting Rubin’s warehouse and saying, “What you’re experiencing right now is effectively where healthcare was a decade or two ago.”

The problem, Kunovac argued, is that there was separate software and systems for every part of the process. What was needed was a “horizontal platform of commerce.”

skubana dashboard snapshot imac

So with Skubana, Rubin and Kunovac have built a software platform that handles shipping, inventory management, restocking and more. The main thing Skubana doesn’t handle is the creating the actual online storefront and shopping cart. Instead, it’s built to take care of everything that a business needs to do once those orders start coming in.

As Rubin put it, “If Shopify is a city, then we’re everything underneath the ground.”

By bringing all the data together from various sales channels and applying and machine learning, the company says it can improve profitability and reduce issues like selling more product that you have in the inventory. There’s also an app store to integrate Skubana with other systems.

“We’re completely replacing these siloed, fragmented pieces of software,” Rubin said.

Brands already using the software include Bird Rides, Valvoline, and Deathwish Coffee. Kunovac noted that Skubana isn’t “entry-level software” — when brands sign up to use it, they’ve usually a growing a commerce business, which is when “the laws of physics have started to take over.” In other words: “They come to us from pain.”

With the new funding, Skubana says it will double its size in the next 18 months, build a number of new products and continue to invest in its app store ecosystem.

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Group Nine hires Brian Lee to lead its commerce business

Group Nine Media has hired Brian Lee as its first executive vice president of commerce.

Lee held a similar role at Maker Studios before its acquisition by Disney, and he also founded the New York-based accelerator SKIG. Group Nine — which was created by the merger of Thrillist, NowThis Media, The Dodo and Discovery-owned Seeker — says Lee’s job will include licensing, merchandising, affiliate advertising and direct-to-consumer products.

“Group Nine has some of the most loved and impactful brands, coupled with the ability to leverage a host of deeply powerful insights,” Lee said in a statement. “I believe we are uniquely positioned to make huge strides in this space and can’t wait to get started.”

When I met with Group Nine CEO Ben Lerer earlier this year, he laid out his vision for the company moving forward.

“We’re successfully building brands — not to be distributed over a paid TV pipe, not to sit back and watch on your TV passively,” Lerer said. “Instead, we’re building brands for the kind of content consumption that someone who’s grown up with a smartphone in their pocket patronizes. What we’re doing is shows and characters and telling stories that are meant to be delivered via Facebook, via YouTube, via Snapchat, via Twitter.”

That kind of strategy, where a publisher relies on third-party platforms to reach their audience, has been disastrous for other digital media companies, but Lerer sounded pretty confident, particularly as the company gets smarter about which shows to invest in: “We’re making less and less content that is disposable every month than we did the month before.”

That approach seems to tie into Group Nine’s commerce strategy. In today’s announcement, Lerer said, “We have some of the most engaging brands on mobile, built around deeply dedicated communities of loyal fans so it’s imperative that we make the most of the opportunities that presents.”

Citing Nielsen, Group Nine says its content reaches nearly 45 million Americans every day. Business Insider also reported recently that the company is in talks to merge with women’s lifestyle media company Refinery29.

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Honest Company CEO Brian Lee Celebrates His Birthday By Talking IPO Possibilities At SXSW

honest company When Brian Lee and Jessica Alba (yes, that Jessica Alba), co-founders of eco-friendly e-commerce startup The Honest Company, spoke this afternoon at the South by Southwest, they didn’t make any big announcements or drop any (metaphorical) bombs. Nonetheless, Alba kicked things off with one surprise — she mentioned that today is Lee’s birthday. (She didn’t say how old… Read More

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