General Catalyst Invests $20M In Commerce Platform Feedvisor

Feedvisor, an algorithmic commerce startup that helps sellers optimize their inventory and increase sales in online marketplaces, has secured $20 million in Series B funding from General Catalyst. This brings the site’s total amount raised to $33 million.

TechCrunch reported that the site, which is managing more than $2 billion in goods sold through online marketplaces, plans to double its workforce and expand its New York City office. Founded in Israel, Feedvisor also has an office in Seattle. In addition to the financing, General Catalyst Managing Director Larry Bohn is joining Feedvisor’s board.

“It’s very important for us to establish a larger presence in New York,” Bohn said. “It’s the center of commerce and a large group of our customers are there.”

The Feedvisor platform uses a unique pricing algorithm to help sellers make more money while selling on marketplaces like Amazon and eBay. The site uses machine learning to track different market dynamics and can also ensure that sellers optimize their inventory and replenish it effectively. The site will actually alter price tags on the stock in a client’s Amazon store when demand, supply or competition prices change. It also examines geographic distribution and customer service records to make a sale more likely.

According to Feedvisor CEO Victor Rosenman, its average customer is doing at least $1 million in gross merchandise volume (GMV), and the company hopes to attract even larger clients over time.

“We solve the basic problem of complexity of their business: competition, prices, demand (which changes, but over time and is relatively steady) and managing their inventory,” Rosenman told Geektime last month. “What changes faster is your ability to be in the top rank, which is greatly affected by competition.”

For its part, General Catalyst has made a number of investments in eCommerce and business intelligence startups, like Demandware, Bigcommerce, Hubspot and GoodData, and has vast expertise in how online marketplaces work.

“Amazon has changed everything, from the way products are manufactured to the way they’re distributed,” Bohn said.

Other Feedvisor investors include Square Peg Capital, JAL Ventures, Oryzn Capital and Micro Angel Fund.