B8ta
| Company type | Private |
|---|---|
| Industry | Retail, Consumer electronics |
| Founded | 1 December 2015 in Palo Alto, California, United States |
| Founder | Vibhu Norby, William Mintun, Phillip Raub, Nicholas Mann |
| Defunct | February 18, 2022 |
| Fate | Ceased operations of remaining U.S. locations |
| Headquarters | San Francisco , United States |
| Products | Consumer electronics, household products |
Overview
b8ta operated as a retail-as-a-service enterprise specializing in showcasing consumer electronics and household products. Established in 2015 by Vibhu Norby, William Mintun, Phillip Raub, and Nicholas Mann, the company launched its inaugural store in Palo Alto, California, in December of the same year. Businesses rented space within these stores to exhibit their merchandise, each accompanied by a tablet featuring brand-specific software. All items were presented unpackaged on display, allowing customers to physically interact with and test the products. Additionally, b8ta retailed these goods directly to shoppers. Store associates, referred to as "b8ta testers," provided demonstrations and detailed product knowledge, which they received through training from the exhibiting brands. Expanding beyond electronics, b8ta introduced a fashion-focused outlet called Forum in West Hollywood in November 2019, employing the same experiential retail approach.
The company ceased operations of its remaining U.S. locations on February 18, 2022, attributing the closures to decreased customer visits amid the COVID-19 pandemic and an increase in theft incidents.
Ark
Ark, formerly recognized as Built by b8ta, offers companies a platform designed to launch physical showrooms showcasing their products. Among its most notable implementations is a collaboration with Lowe's, featuring a store-within-a-store model across 70 locations. These sections, branded as SmartSpot, provide shoppers with opportunities to experience smart home devices firsthand. Additionally, Macy's Herald Square hosts a temporary retail area utilizing Ark's technology. In 2019, Tru Kids, the U.S. trademark owner of Toys "R" Us, adopted the Ark platform for its brick-and-mortar outlets.
Funding
In September 2016, b8ta secured $7 million in a Series A round of investment. By June 2018, the company completed a $19 million Series B round, spearheaded by Macy's and joined by investors such as Sound Ventures, Palm Drive Capital, Capitaland, Graphene Ventures, Khosla Ventures, and Plug and Play Ventures. This funding round increased b8ta's cumulative capital to $39 million.
During June 2018, Macy's acquired a minority stake in b8ta.
Later, in October 2019, b8ta raised $50 million in a Series C funding round led by Evolution Ventures, with participation from earlier investors including Macy's and Khosla Ventures.
Decline and closure
The upscale products offered by b8ta made its stores frequent targets for theft and break-ins, resulting in security expenses at the Hayes Valley location in San Francisco reaching $30,000 each month. Due to multiple armed robberies, b8ta shut down two of its San Francisco outlets in 2021.
On February 18, 2022, b8ta ceased operations at its remaining retail locations across the United States. This decision was influenced by difficulties linked to the COVID-19 pandemic, which led to a drastic reduction in customer visits—some stores experienced declines in foot traffic of up to 98% compared to pre-pandemic levels.