Our investment in Treet
We are excited to announce that Matchstick Ventures Fund II has completed an investment in Treet. Treet is a software platform that powers peer-to-peer resale for e-commerce brands.
Background: Driven by consumer consumption changes, especially among Millennial and Gen Z purchasers who are focused on sustainability, cost-consciousness, and lowering their consumer footprint, there has been a large resurgence in the market for secondhand goods. Currently, the resale market is outpacing the growth of retail by 21 times, and multiple online platforms have taken advantage of this trend. Companies like Poshmark and TheRealReal have become large public companies, and have proven there is interest in the resale and reuse of goods.
Currently, the companies that originally made the products being resold have no access to the resale market. Brands like The North Face or Gucci can see their goods being resold multiple times on various marketplaces, but have no way to benefit from either the profits or the data being collected. Because of how fast the resale market is growing, brands are looking for ways to participate.
Company Specifics: Treet is building a secondhand marketplace that works directly with brands to power a resale solution on the brand’s own website with existing customers, allowing them to participate in the resale of their products. Treet’s software will allow brands to reach new customers who don’t want to participate in the firsthand retail market, as well as grow engagement with current customers, and benefit from the revenue stream of secondhand sales.
Treet is initially focused on the fashion industry. Treet’s software integrates directly with the brand’s inventory and ordering systems, allowing customers to list their previous purchases automatically, pulling photos and product descriptions directly from the brand’s website. Treet also takes ownership of the transaction, and brands do not need to take inventory of the item or facilitate the transfer. Treet is responsible for the entire purchase experience, including enabling shipping, logistics, and customer support. After a purchase is made, both Treet and the brand benefit from the revenue generated by the sale. This is a powerful way for brands to quickly and easily take advantage of the resale market, increase the sustainability of their products and reduce the impact the fashion industry has on the planet.
In the future, Treet also plans to build a global Treet marketplace where all items will be listed. Customers will be able to make purchases across brands, allowing Treet to drive their users and customers to brands directly.
We met Treet when they participated in the Techstars Anywhere Accelerator and served as their lead mentor. We saw firsthand how hard they are working to make Treet a reality and how passionate they are about this space. Treet is based in San Francisco, California, and the co-founders have previous experience in both online marketplaces at Airbnb and Indie Go-Go as well as second-hand shopping.
Learn more at:https://www.treet.co/