Accelerant invests in e-commerce start-up
Summary
The Dayton Development Coalitions entrepreneurial development team, Accelerant, will invest in a Cincinnati-based technology start-up that plans to open a distribution center in the Dayton region, a coalition official said.Accelerant will invest up to $500,000 in Loteda, an online marketplace that sells gently used childrens clothing by the lot, said Mike Hadjinian, an Accelerant entrepreneur-in-residence.The company plans to open a distribution center north of Ohio 63 that is expected to create 60 to 80 new jobs, Hadjinian saidLoteda marks the fourth investment for Accelerant Fund I, a $9.5 million, 10-year seed-stage venture fund focused on the Dayton region. The fund includes $6.5 million in private capital raised from Dayton-area investors and $3 million in state funds.Accelerant and Cincinnati seed-stage investor CincyTech are partnering as lead investors, in addition to a number of angel investors, Hadjinian said.Accelerants initial investment is $150,000. The total investment over time will be $500,000, including funding for the Dayton-area distribution center, he said.Loteda, pronounced lot-e-da, allows parents to buy and sell a seasons worth of gently worn childrens clothing in a single, cost-effective transaction.To sell a $5 or $10 dollar kids item, its just not worth the overhead. So by putting them into lots you save tremendous time for the moms, both on the listing side and the buying side, and you get the price point up to a point where people can afford to provide the service, Hadjinian said.If successful, e-commerce companies can become $50 million to $100 million businesses overnight, he said.Accelerant Fund Is previous investments include $500,000 in a start-up pharmaceutical company, Patients & Consumers Pharma; $300,000 in the mobile technology company, storeFlix; and $500,000 in the clinical diagnostic laboratory, Ischemia Care.