YBUY operates a subscription gadget service that delivers devices (from iPads to espresso machines) to customers for $25 per month for a 30‑day trial period; shipping is free both ways. Customers must return items after the month unless they choose to buy them, in which case YBUY deducts the month’s subscription fee from a discounted purchase price and charges the remainder. The company launched earlier in the year after being founded in August 2011 and is based in the Los Angeles area. Stephen Svajian is CEO. The business model emphasizes try‑before‑you‑buy mechanics and tight unit economics around monthly rentals and conversions to purchases. YBUY says the new funding will be used to test assumptions around scaling the business. YBUY is a subscription "try before you buy" service that allows customers to test electronics and gadgets for 30 days. For $24.95 per month the company ships items such as the iPad 2, Dyson heaters, Jawbone headsets and iRobot Roombas with free outbound and return shipping. If customers decide to keep an item they can purchase it and receive credit for the monthly fee; YBUY says it will also discount some items below regular retail to encourage purchases, though not all listings are discounted. CEO Stephen Svajian frames the service as an easy-to-use sales channel for manufacturers to offer refurbished products to consumers without the added cost of marketing and sales. The Manhattan Beach, California-based startup was founded by Stephen Svajian and Kevin Wall and is exiting public beta. YBUY has secured $750,000 in seed funding from the founders and other angel investors.

Total raised

$2M

Funding rounds

2

Latest round

Series A

Latest activity

Jul 2012