Click here to close now.


News Feed Item

Beyond the Rack Gears Up For Next Phase Of Growth With $25 Million Equity Round

Leading online shopping club closes equity round and adds management to fuel long term growth

MONTREAL, Nov. 26, 2013 /PRNewswire/ -- Montreal-based e-commerce leader Beyond the Rack today announced that it recently closed a $25 million investment round led by Investissement Quebec, Iris Capital and Tandem Expansion Fund. Current investors Highland Capital Partners, Panorama Capital, BDC Venture Capital IT Fund and iNovia Capital also participated in the round.

(Logo: )

Proceeds from the current round of funding will be used to further accelerate the strategies for long-term growth of the company and its active customer base.

"We are extremely excited about what this additional capital will allow the company to achieve over the coming years. It is earmarked for important investments in logistics, technology and future growth," says Yona Shtern, CEO of Beyond the Rack.

The company has grown from a start-up four years ago to a market leader with over 10 million consumer members, 5,000 brand partnerships and world-class e-commerce operations in both Canada and the United States.

"Beyond the Rack has built impressive scale and a market leading position in e-commerce. As an existing investor, we are particularly excited about having the opportunity to expand our involvement and continue supporting the team," says Alex Moorhead, Managing Partner at Tandem Expansion Fund.

Alex Moorhead from Tandem Expansion Fund will be joining the Beyond the Rack board of directors.

Alexander Wiedmer, Partner from Iris Capital says, "As a global investor we have broad exposure to e-commerce internationally and have been impressed by Beyond the Rack's world-class unit level economics and operations. It is ideally positioned to be an industry and market leader as
e-commerce continues to expand in both Canada and the United States."

The company also confirmed two recent executive announcements as it re-enforces its management team for long-term growth.

Mike Bhaskaran recently joined the company in the position of Chief Operating Officer - responsible for global logistics, transportation, fulfillment and technology. He comes to BTR with extensive relevant operations experience at e-commerce industry leaders including Amazon, Starbucks, Gap and Dell.

Jim Weinberg was recently promoted to President and Chief Merchandising Officer. Jim previously held the role of CMO and has been with BTR for 4 years. Prior to joining the company, he held executive positions at Burlington Coat Factory, Kellwood and May Company.

About Beyond the Rack

Beyond the Rack, North America's leading e-commerce platform, offers its 10 million members the most sought-after designer brand apparel, accessories, beauty, and home decor products at up to 80% off retail. Products are sold in the context of two-day, first-come, first-served, limited-quantity events. Members can expect up to 30 new events each day. The privately held company has offices in Montreal, Toronto, New York and Las Vegas.

About Tandem Expansion Fund

Tandem Expansion is a private growth capital fund with over $300 million in committed capital actively seeking to invest in small and mid-sized Canadian companies in a variety of technology-based sectors. Tandem acts as a catalyst for growth and expansion by making significant investments in established companies with high growth potential and strong management teams.

About Investissement Quebec

Investissement Quebec's mission is to foster the growth of investment in Quebec, thereby contributing to economic development and job creation in every region. The Corporation offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment.

About Iris Capital

Iris Capital is a pan-European venture capital fund manager specialized in the digital economy. Since its inception in 1986, the Iris Capital team has invested more than €950 million ($1.3 billion) in more than 220 companies. Iris Capital targets opportunities in service or technology companies, seeking growth capital in order to realize their strategy. It provides active support to its portfolio companies on the basis of its strong sector specialization and experience, and has offices in Paris, Düsseldorf, Montreal, San Francisco, Riyadh, Dubai, Beijing and Tokyo. In 2012, Iris Capital has entered into a strategic partnership with Orange and Publicis to manage their joint venture initiative.

About Highland Capital Partners LLC

For the past twenty years, Highland Capital Partners has taken a sector-focused approach to investing in exceptional seed through later stage growth companies in the healthcare, internet & digital media and technology markets. Highland actively seeks to provide the right mix of strategic guidance, hands-on leadership and deep industry domain expertise for helping entrepreneurs and their teams become market-leading organizations. With over $3 billion of committed capital and offices in Boston, Silicon Valley, Shanghai and Geneva, Highland has invested in and worked to create such firms as Ask Jeeves, Avid Technology, CheckFree, Conor Medsystems, Continental Cable, Generation Health, lululemon athletica, Lycos, MapQuest, Ocular Networks, Odyssey Healthcare, Quigo, Starent Networks, Sybase, Telica and VistaPrint.

About Panorama Capital Partners

Panorama Capital seeks investment opportunities in life sciences and technology companies led by dynamic, experienced entrepreneurs. Leveraging two decades of investment and operating experience, the team invests in mid to later stage financings primarily in the consumer and mobile segments in technology, and biopharmaceuticals in life sciences. Panorama partners with its portfolio management teams to bring its experience and extensive network to bear on solving strategic challenges, building teams and accelerating growth. The partners are proud to have invested in and worked with numerous successful companies including Digital Island, ONI Systems, Myogen, Petco Animal Supplies, Kinkos, Eyetech, Piramed, Seattle Genetics, Corus Pharma, Federated Media,, and Portal Player, among others.

About the BDC Venture Capital IT Fund

The BDC Venture Capital IT Fund is a $152 million fund with offices in Vancouver, Calgary, Ottawa, Toronto and Montreal as well as strong links to Silicon Valley. Investments are typically early stage companies in the enterprise, Internet and mobile sectors. The fund has invested in many successful companies including Layer 7 (acquired by CA Technologies), Radian6 (acquired by Salesforce), Opalis (acquired by Microsoft) and Q1 Labs (acquired by IBM). We are a part of BDC Venture Capital, an investor of choice with more than $1 billion under management. Find out more at or on Twitter @BDC_VC.

About iNovia

iNovia partners with exceptional entrepreneurs to build successful companies in high growth sectors. The team is comprised of entrepreneurs and sector experts focused on Mobile, Internet and Digital Media. iNovia has $165M under management across two seed and early stage funds.

Press contact
Beyond the Rack
Jacqueline Stein-Elman
514-733-4666 X3588
[email protected]

SOURCE Beyond the Rack

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application del...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...