Armed With a Fresh $15M Raise, Fernish Plans Expansion as America Redecorates Under Quarantine

Rachel Uranga

Rachel Uranga is dot.LA's Managing Editor, News. She is a former Mexico-based market correspondent at Reuters and has worked for several Southern California news outlets, including the Los Angeles Business Journal and the Los Angeles Daily News. She has covered everything from IPOs to immigration. Uranga is a graduate of the Columbia School of Journalism and California State University Northridge. A Los Angeles native, she lives with her husband, son and their felines.

Armed With a Fresh $15M Raise, Fernish Plans Expansion as America Redecorates Under Quarantine
Fernish

Americans locked out of the workplace have been remaking their home offices by adding desks, plants and wall hangings. Some of it so that they look a little more slick on Zoom calls.

The new interest in a beautiful home office has been a boon to furniture services like Fernish, which sells itself as an affordable option to upscaling your home. The rental service recently closed on a $15 million Series A led by Kosla Ventures, alongside other top investors including Scott Cook (founder of Intuit), Eytan Elbaz (founder of Scopely), and Jeff Wilke (Amazon's CEO of Worldwide Consumer), and Spencer Rascoff (founder of Zillow and dot.LA).


Armed with the new infusion of cash, Fernish Chief Executive Michael Barlow is looking to expand their reach beyond their service area of Los Angeles and Seattle metro. "We're literally spending 100% of our days in our home. People are taking stock of what it looks like."

Orders for home offices furnishings at Fernish surged 300% over the past two months, and May is tracking to be its best month for new signups since the Los Angeles company's founding in 2017. Fernish truly broke out a year later after joining L.A. accelerator TechStars, and raised $30 million in January 2019.

"Because you are on Zoom calls all day," Barlow said of many professionals, "you definitely want to have a nice decor set out there whether it be wall hangings, new lighting or otherwise."

Fernish, along with a growing list of venture-backed furniture rental companies including New York-based Feather and CasaOne from the Bay Area, pitch themselves as the antidote for young urbanites sharing apartments or setting up their first place to live. Adulting.

Fernish Customer Spotlight: Lizwww.youtube.com

They may want nice furniture but don't want to invest up front or schlep it to the next city they might live in. These startups give commitment-free options while promising to be more eco-friendly than disposable furniture.

Barlow was in part inspired to build the company with his co-founder Lucas Dickey when he was trying to convince his girlfriend to move to Los Angeles from the East Coast. Moving was expensive and he wanted to eliminate that, plus a lot of furniture becomes disposable.

The company has also pitched itself as part of the circular economy, as second hand and used items have become more digestible to the eco-conscious consumer. "Fast Furniture is out," reads one of the taglines on Fernish's website, tapping into the dueling consumer desire to do good and buy. "Tastes change, lifestyles evolve and we demand different things from our home over time," it goes on. "With Fernish you can refresh your style with high quality furniture that's built to last."

Fernish offers mid-century and modern furniture, partnering with CB2 and Crate & Barrel. Prices range from a $79 month for a mid-century meridian blue sectional worth $1,895 to $13 a month for desk with a Walnut top valued at $299. The company also offers a lease-to-own program.

The model is nothing new. For years, the rent-to-own industry has gotten a bad name as shady companies targeted poor people who couldn't afford big payments to buy furniture. But Fernish and other companies have upscaled the service by targeting professional millennials and Generation Z, who don't necessarily want to be stuck with expensive furniture or may not want added waste.

More than half of its customers came to the company before or after a move. The majority view furniture as a disposable asset. And it's finding new customers through one of its investors, Real Estate Tech Ventures, which counts apartment owners among its clients.

But will the success continue once the pandemic ends? Direct-to-consumer services like Amazon and furniture Wayfair have seen sales jump, even as they face logistical challenges.

Barlow is convinced the company is working within a larger trend toward a service economy that built up Uber and Lyft and spawned a legion of food delivery apps and fashion rental services that offer short-term access to high end products like clothes (Rent the Runway, LeTote).

He's not the only one. Others that have done well during the pandemic like mobile software provider Tapcart, think the forced move online will permanently shift consumer behavior as traditional retailers struggle to recover. Consumers have become more and more willing to pay for convenience.

Co-founder Lucas Dickey (L) and Chief Executive Michael Barlow (R) of FernishPhoto courtesy of Fernish

"While the quality of the product is still important, the point of differentiation between brands is now often dependent on their ability to market the service (and) delivery," said a report from Deloitte on the future of retail that was published before the pandemic took root in the U.S. "Premium charges are already a regular aspect of meal and grocery delivery services."

Furniture can be a capital-intensive business and the company has invested heavily in a proprietary system that helps it streamline supply management and complicated reverse logistics that it employs to retake possession of furniture and refurbish it. Dickey said the company sees its investments in their technology akin to that of Amazon's investment in Amazon Web Service, which offers company software service for companies and individuals.

"No one does merchandising and upselling or operations better than Amazon, so we're trying to follow in their footsteps," Barlow said. "Should we have 1% of their success, we would be very happy."

dot.LA co-founder Spencer Rascoff has a non-controlling investment in Fernish. Please read our Editorial Independence pledge for more information.

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LA’s Upgrade in Travel and NBA Viewing
Image Source: Los Angeles World Airports

🔦 Spotlight

Exciting developments are underway for Los Angeles as the city prepares for major upgrades in both travel and entertainment. The Los Angeles Board of Airport Commissioners has approved an additional $400 million for the Automated People Mover (APM) at LAX, increasing its total budget to $3.34 billion. This boost ensures the elevated train’s completion by December 8, 2025, with service starting in January 2026. For Angelenos, this means a significant improvement in travel convenience. The APM will streamline connections between parking, rental car facilities, and the new Metro transit station, drastically cutting traffic congestion around the airport. Imagine a future without the dreaded 30-minute traffic delays at LAX! The APM will operate 24/7, reducing airport traffic by 42 million vehicle miles annually and carrying 30 million passengers each year, while also creating thousands of local jobs and supporting small businesses.

Meanwhile, the NBA is also making waves with its new broadcasting deals. The league has signed multi-year agreements with ESPN, NBC, and Amazon Prime Video, marking a notable shift in media partnerships. ESPN will maintain its long-standing role, NBC returns as a network broadcaster after years away, and Amazon Prime Video will provide NBA games through its streaming platform. Starting with the 2025-2026 season, these deals will enhance the league's reach and revenue, aligning with the NBA's goal to expand its audience and adapt to evolving viewing habits. Whether you're catching the action on TV or streaming online, these changes promise to elevate the fan experience and bring more basketball excitement to Los Angeles.


🤝 Venture Deals

LA Companies

  • Pearl, a startup that makes AI-powered software that assists dentists in identifying cavities, gum disease, and other dental conditions, raised a $58M Series B funding led by Left Lane Capital with Smash Capital, and others also participating. - learn more

LA Venture Funds

  • Fulcrum Venture Group participated in a prior $3.5M Pre-Seed Round for Code Metal, a developer tools startup. - learn more
  • B Capital co-led a $12.5M Seed Round for Star Catcher, a startup that aims to develop a space-based grid that captures solar energy in space and distributes it to satellites and other space assets. - learn more
  • Mantis VC and Amplify participated in a $140M Series C for Chainguard, an open source security startup. - learn more
  • Prominent LA venture capitalist, Carter Reum and wife, Paris Hilton, participated in a $14M Seed/Series A for W, the men’s personal care brand from Jake Paul. - learn more

LA Exits


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🤫 The Secret to Staying Fit at Your Desk: 6 Essential Under-Desk Exercise Machines

Health experts are sounding the alarm: our sedentary jobs are slowly killing us, yet we can't abandon our desks if we want to keep the lights on. It feels like we're caught between a rock and a hard place. Enter under-desk exercise machines – the overlooked heroes (albeit kind of goofy looking) of the modern workspace. These devices let tech professionals stay active, enhance their health, and increase their productivity, all without stepping away from their screens. Here are 6 fantastic options that will enhance the way you work and workout simultaneously.

DeskCycle Under Desk Bike Pedal Exerciser

This bike has nearly ten thousand five-star reviews on amazon. It works with nearly any desk/chair setup. It is quiet, sturdy and allows up to 40 pounds of resistance. If you are looking for an under-desk bike this is a fantastic option.

Type: Under-Desk Bike

Price: $180 - $200


Sunny Health & Fitness Dual Function Under Desk Pedal Exerciser

This under-desk bike is extremely quiet due to the magnetic resistance making it an ideal option if you work in a shared space. It doesn’t slip, has eight levels of resistance, and the option to work legs and arms. It’s about half the price of the DeskCycle bike making it a solid mid-range option for those looking to increase their daily activity.

Type: Under-Desk Bike

Price: $100 - $110


Sunny Health & Fitness Sitting Under Desk Elliptical

This under-desk elliptical comes in multiple colors if you really want to underscore that you are a quirky individual, in case an under-desk elliptical isn’t enough. This model is a bit heavy (very sturdy), has eight different resistance levels, and has more than nine thousand 5-star reviews.

Type: Under-Desk Elliptical

Price: $120 - $230


DeskCycle Ellipse Leg Exerciser

This under-desk elliptical is another great option. It is a bit pricey but it’s quiet, well-made and has eight resistance levels. It also syncs with your apple watch or fitbit which is a very large perk for those office-wide “step” challenges. Get ready to win.

Type: Under-Desk Elliptical

Price: $220 - $230


Daeyegim Quiet LED Remote Treadmill

If you have a standing desk and are looking to walk and work this is a fantastic option. This walking-only treadmill allows you to walk between 0.5 to 5 mph (or jog unless you have the stride length of an NBA forward). It is very quiet, which is perfect if you want to use it near others or during a meeting. You can’t change the incline or fold it in half but it is great for simply getting in some extra steps during the work day.

Type: Under-Desk Treadmill

Price: $220 - $230


Sunny Health & Fitness Foldable Manual Treadmill

This under-desk treadmill isn’t the most premium model but it is affordable and has an impressive array of features. It is a manual treadmill meaning it doesn’t need to be plugged in; it is foldable and offers an incline up to 13%. I personally can’t imagine working and walking up a 13% incline but if that sounds like your cup of tea, then I truly respect the hustle.

Type: Under-Desk Treadmill

Price: $150 - $200




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🤠Musk Picks Texas and 🔥Tinder AI Picks Your Profile Pictures

🔦 Spotlight

Tinder is altering dating profile creation with its new AI-powered Photo Selector feature, designed to help users choose their most appealing dating profile pictures. This innovative tool employs facial recognition technology to curate a set of up to 10 photos from the user's device, streamlining the often time-consuming process of profile setup. To use the feature, users simply take a selfie within the Tinder app and grant access to their camera roll. The AI then analyzes the photos based on factors like lighting and composition, drawing from Tinder's research on what makes an effective profile picture.

The selection process occurs entirely on the user's device, ensuring privacy and data security. Tinder doesn't collect or store any biometric data or photos beyond those chosen for the profile, and the facial recognition data is deleted once the user exits the feature. This new tool addresses a common pain point for users, as Tinder's research shows that young singles typically spend about 25 to 33 minutes selecting a profile picture. By automating this process, Tinder aims to reduce profile creation time and allow users to focus more on making meaningful connections.

In wholly unrelated news, Elon Musk has announced plans to relocate the headquarters of X (formerly Twitter) and SpaceX from California to Texas. SpaceX will move from Hawthorne to Starbase, while X will shift from San Francisco to Austin. Musk cited concerns about aggressive drug users near X's current headquarters and a new California law regarding gender identity notification in schools as reasons for the move. This decision follows Musk's previous relocation of Tesla's headquarters to Texas in 2021.

🤝 Venture Deals

LA Companies

LA Venture Funds

LA Exits

  • Penguin Random House agreed to acquire comic book publisher Boom! Studios from backers like Walt Disney Co. - learn more

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