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Ariel Kaye learned the truth about linens while researching what bed sheets to buy (turns out it's the caliber of a thread matters more than the count.) She was also surprised to find that the home textiles industry, a $22 billion market according to Home and Textiles Today , has little brand loyalty and no true brand leader. So in 2013, she went to Italy, found an 80-year-old, family-run textile factory to produce high-quality sheets and launched Parachute Home (a Los Angeles-based startup that sells bedding online). Last year the company did $1 million in sales via its website. Recently it announced $3.8 million in new venture funding from Upfront Ventures, with participation from Daher Capital, Queensbridge Venture Partners, Mesa+, and Joanne Wilson. By selling directly from its website, Parachute cuts out the middleman and offers consumers a lower price than what brick-and-mortar retailers charge for their high-quality sheets. The company is a “luxury bedding basics brand born out of the idea that you should not have to spend a ton of money on a sheet set,” says Kaye. Parachute is one of a growing number of startups that are aiming to capitalize on the e-bedding market gap. Startup Brooklinen did more than $1 million in sales in 2014, its first year. Demand was so high that the company was only able to keep inventory in stock for seven out of the first 12 months in business. Vero Linens, an Italy-based exporter of luxury linens, began selling its sheets directly to customers online after a drop in cotton prices cut into the company’s margins, while New-Jersey based Boll & Branch launched its e-commerce business in early 2014.

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