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Rock Paper Coin Secures $1 Million in New Funding to Fuel Growth
Rock Paper Coin, a digital contracts and payments management startup, is finalizing an internal investment round that is expected to bring in approximately $1 million in new capital. This comes on top of the $3 million in convertible notes the company has secured over the past few years, according to co-founder Elizabeth Sheils. The funding round was led by existing investor Cascade Seed Fund and included several new angel investors.
The recent funding surge was driven by opportunities for unique partnerships and success in new market segments, said Sheils. The company’s software platform is designed to streamline contract and payment management specifically for the wedding industry. It allows all stakeholders involved in a wedding—such as planners, couples, and vendors—to manage contracts and invoices through a single system.
Since its launch in 2018, Rock Paper Coin has primarily targeted wedding planners and vendors. However, the company has since expanded its services to include all event planning professionals. Sheils noted that the company expects to process about $50 million in transaction volume through the platform this year in the U.S. Currently operating at a break-even level, the company plans to use the new funds to invest in growth initiatives, including its first international sales in Canada later this year.
Focusing on Affiliate and Partnership Programs
One key area of investment is the development of affiliate and partnership programs. Two years ago, the team made strategic decisions to reduce their burn rate by cutting marketing expenses to under $1,000 per month. This move was based on the observation that 70% of new signups came from referrals and word of mouth. By building a robust referral and affiliate program, the company aims to reward customers who help promote the platform.
Sheils also highlighted the potential for expansion into new segments, such as caterers. While the average business volume for most users on the platform ranges from $75,000 to $100,000, catering businesses typically see much higher volumes, between $750,000 and $1 million. This presents a significant growth opportunity for the company.
Competing with Larger CRM Players
Rock Paper Coin has been gaining market share from larger CRM players due to its user-friendly approach. Sheils explained that many big platforms require high subscription fees and attempt to automate every aspect of workflow. However, in the event and wedding industry, much of the business relies on relationship-based selling, which isn’t always compatible with fully automated systems.
Overcoming Challenges in Fundraising
Despite its progress, Sheils and her co-founder and sister-in-law, Nora Sheils, have faced challenges in securing funding. As a women-led startup operating in the wedding industry—a sector often overlooked by male investors—the company has had to work harder to gain recognition.
However, recent developments, such as Airbnb’s renewed focus on experiences, could bring more attention to companies serving the event and vendor space. Sheils expressed optimism about the growing recognition of the wedding industry’s size and stability.
Looking Ahead
While the current fundraising environment remains uncertain, Sheils mentioned that the team might consider raising a larger round if conditions change. For now, the focus remains on customer growth and scaling the business.
Sheils reflected on her six years in the industry, noting how much time and energy it takes to secure funding. She emphasized the importance of being able to raise capital without diverting too much attention from day-to-day operations.
“I’ve now been in this for six years. I’m starting to understand truly how much it costs the business when Nora and myself go out and fundraise,” she said. “It takes so much time and energy, and right now we’ve been able to take in money off the table and keep our heads down, which feels really good.”