Summary List Placement
Founders Fund’s Keith Rabois and Atomic’s Jack Abraham are quietly building a team for a new stealth startup in Miami.
The two California-to-Florida transplants both moved to Miami during the pandemic year and have joined forces to create OpenStore, a company that will “provide instant liquidity to long-tail Shopify merchants,” Rabois tells Insider in an exclusive interview.
“So we will give them an offer to buy their business instantly, the same day,” he added. In exchange for the cash from the acquisition, those merchants will agree to move their e-commerce shops to OpenStore which will integrate and operate them all on a single platform.
Another way to describe the company is “Square meets OpenDoor.” In addition to being an investor at Founders Fund, Rabois is also the cofounder of OpenDoor, the online real estate company, and he’s former COO of digital payments processor Square.
“It’s like OpenDoor in the sense of reevaluating a house site and seeing instant offers. And it’s a little bit like Square in that we are making liquidity available to any business owner online instantly,” said Rabois.
So far, the company has not made any acquisitions yet because it is still early in the process of building the team. “There are some fundamental things we need to do first like assemble a team, have an office to work together and collaborate, and have a platform to actually run the business once we buy the businesses,” Rabois said.
“The easiest part will be actually finding the business,” he added, explaining that most of the companies they are eyeing don’t have the option to raise capital through financial institutions on their own. “We think it will be actually fairly easy to find Shopify merchants who are interested.”
Rabois also said the team currently has nine full-time employees and they are actively recruiting additional engineers as well as a lead designer. They also signed a lease in the trendy Wynwood neighborhood of Miami and are moving into the fourth floor of The Annex on Monday.
Keeping it in the family, Founders Fund and Atomic, who are also backing the new company, will be housed in the same building. The only condition for prospective employees, according to Rabois, is they have to be willing to relocate if they do not already live in the sunshine state.
“One hundred percent of the employees will be based in Miami,” he said.
The idea for OpenStore was planted in 2018 …read more
Source:: Business Insider