Online auction site Bids.com, based in Valencia, has completed its first round of financing.
The marketplace, on which users bid on clothing, jewelry and other products in auction-style sales, announced Tuesday it raised $1.7 million. The company did not reveal any of its investors or say how many it has taken on.
The funding will help the company launch a marketplace for third-party sellers to create their own individual stores on the Bids.com platform.
With a first round company valuation of $10 million, Bids.com oversubscribed its original funding goal of $1 million. The company is now preparing for a second round of financing with a valuation of $30 million.
In a press release, Bids.com founder David Zinberg said he’s pleased with the strong demand the company saw in the first round. He added the timing helps, in that it coincides with the brick-and-mortar retail industry’s push online due to the coronavirus.
“Our imminent release of opening our market to third-party sellers is well-timed with the rapidly increased demand for e-commerce shopping. As our capital grows, we will be able to support and provide our entrepreneurs with the tools to succeed in an environment that is quickly moving from brick-and-mortar to online," Zinberg said in a statement.