A year after raising $6.5 million, GoodGood is shutting down, claiming it can’t find more money

The company says the crisis has had a “dramatic impact” on its rapid delivery of local trade.

Nearly a year after closing a landmark first round, Toronto-based GoodGood has gone out of business after failing to secure additional capital. The fast local commerce startup announced the news on Nov. 21 in a statement on its website.

GoodGood closed a $6.5M seed round in November 2021 at a valuation of around $30M amid clearer economic skies and a much warmer venture funding environment. Over the past 18 months, the company has built five coffee shops and a delivery network that covers most of downtown Toronto.

“While we were confident that our business would be able to overcome many of these challenges, we were unable to secure the capital necessary to continue to realize our vision.”

But this year, market conditions have worsened significantly, and GoodGood has been forced to contend with high interest rates, inflation and the prospect of a prolonged economic downturn. According to GoodGood, while these conditions had a “dramatic impact” on the company, GoodGood’s inability to secure more financing amid a much more challenging venture capital environment ultimately led to the demise of the fast-paced trading firm.

“The economic realities of rising interest rates, inflation and the coming recession — economic factors that were not a reality when we began this journey — have had a dramatic impact on our business,” GoodGood wrote in a statement. “While we were confident that our business would be able to overcome many of these challenges, we were unable to secure the capital necessary to continue to realize our vision.”

When reached by BetaKit, GoodGood declined to comment further. BetaKit also reached out to some of the company’s investors for additional comment, but none had responded by the time of publication.

Fast-moving startups in particular have been hit hard by the economic downturn. Bigger companies in the space like Gopuff and Gethir have been laying off staff en masse and shrinking their operations, while Canadian peers like Vancouver-based grocery delivery company Tiggi, which closed for $6.3 million last year around the same time as GoodGood, suspended its services in Toronto and Vancouver this summer.

RELATED: Ritual Alumni Launch GoodGood With $6.5 Million to Increase Trade for Local Food and Beverage Producers

GoodGood was founded in April 2021 by a pair of former employees of Toronto social ordering app Ritual, co-founder Robert Kim and senior director of partnerships Chris Linney. Kim and Lini started the fast local commerce company after seeing that despite the increased demand for local commerce during COVID-19, there was a gap in the market in terms of access and discovery of craft items such as beer and specialty snacks.

“By nature, [craft] the industry is quite fragmented and it’s actually difficult, relatively difficult, easy to get all these products,” Kim told BetaKit last year.

Backed by a list of prominent investors that includes BKCM, Golden Ventures, Maple VC, Tet Ventures, Farhan Thavar of Shopifi and Chris Rickett of Digital Main Street, GoodGood’s vision was to help communities “access products from local artisans more easily and quickly manufacturers” to brick-and-mortar coffee shops across Toronto and delivering goods from them to customers in 30 to 60 minutes. According to LinkedIn, GoodGood had 27 employees as of this week.

“While GoodGood goes out of business, the new manufacturers you love will continue to thrive,” GoodGood wrote in a statement. “Over the coming weeks, we’ll be sharing ways you can continue to support these makers by ordering directly or visiting local retailers who share a similar mission of supporting local, up-and-coming makers.”

Feature image courtesy of GoodGood.

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