Dims. is raising a Crowd SAFE at a $12 million valuation with no discount. That’s not an unreasonable price, given the company’s growth of 1,450% between 2019 and 2020. On the other hand, $12 million represents a 5.5-times revenue multiple, which seems a tad steep for a physical goods company with minimal intellectual property or other intrinsic value. All in all, the Dims. price rating is slightly above average but still moderate.

The US online household furniture industry is valued at $47.1 billion in 2021 and is expected to grow by 3.1% this year. The market grew aggressively in the 2010s as more and more consumers became comfortable buying furniture online, but in-person sales are still the norm. In 2020, just 12% of consumers preferred ordering furniture online. 

Wayfair and Amazon dominate the online furniture-buying market. In 2019, 63% of online furniture sales were made on one of those two websites, and those giants’ performances only increased last year. Wayfair reported 84% growth in the second quarter of 2020, thanks to a boom in online furniture buying during the pandemic. The sudden shift to working from home, combined with the risk of visiting in-person furniture stores, caused many consumers to turn to the internet for new desks, chairs, and other types of furniture.

Dims. is hoping to carve out a niche in the remaining segment of the market not held by Amazon and Wayfair. Assuming conservatively that only 30% of online furniture sales remain after Amazon and Wayfair’s share, Dims. could hope to address a total market of roughly $14.1 billion. Despite working in the shadow of major brands, that’s a pretty significant market opportunity. The furniture market is massive, so even small players can generate solid revenue. That’s why Dims.’s market rating is higher than average.

Dims. was founded by Eugene Kim, a finance attorney turned equity crowdfunding executive. Kim earned a BA from the University of California Berkeley and then obtained a JD from the University of Southern California. He spent seven years as a practicing lawyer, bouncing around a few firms. In 2015, Kim became the head of product at NextSeed, the first equity crowdfunding platform to be registered with the SEC. He served in that role for almost two years before founding Dims. 

Late last year, Eugene’s wife, Vivian Kim, joined the Dims. leadership team as COO. Her background is very similar to her husband’s. She attended NYU, then obtained a JD from USC. After about five years as an attorney, she joined the NextSeed team and served in successive roles in marketing and operations before departing to join her husband at Dims. 

The Dims. husband and wife team is highly credentialed with solid experience in the startup world. It’s no surprise that the company is raising an equity crowdfunding round, given its founders’ experience at NextSeed. Eugene has undoubtedly learned a great deal about scaling startups as he supported countless companies in raising capital. Despite the team’s lack of specific experience in the furniture industry, the Dims. team is well qualified to lead a high-growth startup. Thus, the company’s team score is one of its highest.

Dims. has two key differentiators that set it apart from mainstream furniture companies. First, the company is very design-forward, partnering with independent designers to produce unique, eye-catching pieces that can’t be found in the average furniture warehouse. Aesthetics are the core of the Dims. brand and the products it sells. Dims.’s target consumer is a wealthy millennial who craves high-end, artsy furniture for their home. 

Second, Dims. distinguishes itself from other furniture companies in its embrace of socially-conscious business practices. The company plans to register as a B Corporation by 2025 to lead the industry in socially and environmentally responsible operations. By partnering (and sharing revenue) with diverse, up-and-coming designers, Dims. is building a more equitable furniture industry. Plus, the company’s focus on nearly made-to-order, lean manufacturing helps it to match supply with actual demand, reducing inventory and waste while delivering more value to the consumer. 

These are well-articulated differentiators. However, it’s not clear how much of an advantage they actually give Dims. in a highly competitive furniture market. There are countless independent furniture brands in major markets across America, all focused on what they believe to be excellent design. There are also many startups pitching modern aesthetics at direct-to-consumer prices with pieces that strongly resemble Dims.’s offerings. Wayfair or Amazon could also easily create a product line focused on diverse, up-and-coming designers, which could diminish the novelty of Dims.’s concept. Therefore, Dims.’s differentiation rating is just middle-of-the-road.

Dims. has achieved significant growth since its founding in 2018. In 2019, Dims. generated just $141,221 in revenue. In 2020, revenue skyrocketed to over $2 million, a year-over-year increase of 1,450%. Such a huge revenue increase is uncommon for young startups and indicates early product-market fit. However, it’s worth noting that Dims.’s net loss also increased significantly between 2019 and 2020, from roughly $434,000 to $789,000. So the company’s growth may not be particularly sustainable. 

Apart from finances, Dims. is also showing more qualitative signs of a high-growth company. Dims. furniture has been featured in a number of leading publications, from The New York Times to Esquire and Vogue. The company is working to expand its business-to-business (B2B) channel and has already partnered with leading architects and interior designers as well as corporations like Adidas and LinkedIn. 

So far, almost all of Dims.’s performance signals seem to be positive. The company is generating significant revenue and has a strong foothold in both direct-to-consumer and B2B distribution. That’s why Dims.’s performance rating is one of its highest.

There are several areas of risk that prospective investors should consider when evaluating Dims. Most importantly, Dims.’s financials tell the story of a company growing rapidly but spending a significant amount on user acquisition to get there. Though Dims. supposedly has a healthy customer acquisition to customer lifetime value ratio — meaning its customers’ lifetime value is increasing while its costs to acquire those customers are staying flat — long-term profitability still seems to be a concern. In addition, Dims. is led by a husband and wife team, which puts the company at risk in the case of divorce. Plus, Dims. doesn’t currently have any other senior executives to help stabilize the business in that scenario. Prospective investors should also note that the furniture market is highly competitive, with companies like Amazon and Wayfair hitting their strides and eating up more of the market share. This is a dynamic, volatile space that Dims. is not guaranteed to excel in.

The online furniture sales market is currently dominated by Amazon and Wayfair. These are trusted brand names with thousands of reviews, established return and exchange policies, and other benefits that ease the concerns of consumers who are still nervous about buying furniture online. Beyond those leaders, the market is fragmented and highly competitive, and it’s not clear yet that Dims. has what it takes to win out. The company experienced significant growth in 2020, but so did every other online furniture retailer. It’s hard to say whether growth will continue once consumers are free to return to in-person furniture shopping post-pandemic. All in all, Dims. is still a young company operating in a difficult industry, so it’s impossible to guarantee that Dims. has what it takes to continue growing rapidly.

Dims. has built an excellent brand that stands on clear differentiators: modern aesthetics driven by diverse, up-and-coming designers and sustainable business practices that align with millennial preferences. That generation is moving rapidly into higher income brackets and home ownership, which is perfect for Dims. As the company continues to gain publicity from major publications and open showrooms in large markets, its base of potential customers will only continue to grow. 

Plus, Dims. has a solid opportunity to expand its business-to-business revenue channel. Though fewer corporations are in need of well-decorated offices thanks to the remote work trend, there are still millions of square feet of office space in the US that need to be furnished. Many companies are prioritizing design and socially-conscious practices as they build their office looks. Bulk orders from corporations could provide Dims. with the capital to invest more sustainably in user acquisition, potentially helping the company to move closer to profitability. 

If Dims. can continue to post significant year-over-year revenue growth, it will become a worthy target of acquisition by a larger furniture brand or other lifestyle company looking to double down on furniture (Target, for example). Dims.’s founder, Eugene Kim, has strong credentials and experience to potentially navigate the company toward that exit. If Dims. can achieve a sale, investors could benefit significantly.

Dims. is a high-end online furniture company partnering with up-and-coming independent designers to create beautiful, functional pieces for the modern home. Dims. grew by 1,450% from 2019 to 2020, with thousands of consumers embracing its aesthetic offerings and socially-conscious business practices. If the company can continue to grow steadily from both its consumer and business revenue channels, it could be well-positioned for an acquisition within the next several years. 

Of course, investing in any early-stage startup is risky, and Dims. is no different. The online furniture market is extremely competitive, with a huge number of brands focusing on modern, chic aesthetics and low-markup direct-to-consumer production cycles. That’s not to mention Wayfair and Amazon, which together own more than 60% of online furniture market share. However, Dims. is led by a well-credentialed founder who has expertly built the brand and expanded market share thus far, so there’s good reason to believe that Dims. has what it takes to continue scaling. Therefore, Dims. has been rated a Deal to Watch. 

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to [email protected].