Internet retail start-up to open distribution center in Cin-Day region
Summary
Cincinnati and Dayton start-up funds have teamed up to invest in Loteda, a young Internet retailer planning to open a distribution center in the region in coming years.Loteda will receive up to $500,000 from Dayton Development Coalitions venture fund Accelerant, along with other funding from CincyTech and angel investors, according to the coalition, a private economic development agency.Loteda is web company that sells gently used childrens clothing online by the lot, said Mike Hadjinian, an Accelerant entrepreneur-in-residence. 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.However, Lotedas plans are still early, he said. No sites have been selected for the distribution center, although he said it will open north of Ohio 63 and is expected to create 60 to 80 new jobs.This is a start-up we have just funded. It typically takes a couple of years to reach that size, he said.Loteda marks the fourth investment for Accelerant Fund I, a $9.5 million, 10-year seed-stage venture fund focused on the Dayton region. The funds 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.
Funding
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