When Jordan Nathan launched his direct-to-consumer (DTC) nontoxic cookware company, Caraway, in 2019, he knew he was not the only founder trying to sell a new brand of pots and pans to millennials scrolling through Instagram. However, he saw that coming into the market a little later than his competitors ended up being a blessing in disguise in almost every aspect.
When Caraway entered the scene, it joined other companies such as Our Place, Great Jones, and Made In Cookware in the increasingly crowded category of online cookware startups. However, being a little late to the party allowed Caraway to observe and learn from its competitors’ product offerings and target audiences. As Jordan shared in a recent episode of TechCrunch’s Found podcast, this gave Caraway the opportunity to adapt and fill the voids left by other brands.
“It helped us change our color palette, it helped us change our price point, what pieces that we put in the set,”
Nathan said. “And while a lot of those other brands did a lot of things right, we were able to carve out a unique space within the DTC kitchen world.”
Watching other brands launch also influenced how Caraway sold its first set of products. Initially, Caraway planned to offer both sets and individual pieces of cookware. However, when they noticed that none of their competitors were selling sets, they made a bold move and launched exclusively as sets with no option to purchase individual pieces.
Additionally, observing other brands also influenced when and how Caraway approached retailers. Although they always had plans to eventually sell in stores, they saw that none of the other DTC brands were looking to tap into the retail market. As a result, Caraway began discussions with retailers even before their online launch. Now, Caraway’s cookware sets can be found at major retailers such as Target and Costco.
Getting into retailers early not only helped establish Caraway as a strong player in the wedding registry sphere but also made it a more viable option for couples building their registries compared to other startup cookware brands.
While being a later entrant proved to be advantageous in many ways, it did present a challenge for Caraway in one key area. As Nathan explains, “We were actually both the last to enter the market and the last to fundraise. So when we went to raise funds, every investor we spoke to had already chosen which kitchen brand they wanted to invest in and tackle.”
As a result, their first round of fundraising was a strenuous process. It took 10 months of approaching five to eight investors per day to secure a seed round with over 100 investors, without any major contributions from venture capitalists.
However, five years later, it seems that coming into the market later on may have ultimately paid off for Caraway. They have successfully raised over $40 million in venture capital and expanded their product line to include bakeware and food storage, with more to come.
