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00:00OF ONE COMPANY AND ASKED HIM FOR HIS TAKE ON THE STATE OF FUNDRAISING RIGHT NOW. >> THINGS ARE CHANGING A BIT. WE GREW INTO ALL THE THINGS WE SAID WE WERE GOING TO DO, SO LUCKILY IT WASN'T AS CHALLENGING FOR US. BUT YOU DO SEE FOLKS PULLING BACK AND NOT LOOKING AT NEW DEALS, ESPECIALLY IN THE LATER STAGES, UNTIL THINGS SETTLE DOWN IN THE MARKET. EMILY: LET'S START WITH GOLIATH AND AMAZON. HOW DO YOU DIFFERENTIATE YOURSELF? >> YOU CANNOT START ANY COMPANY WITHOUT THINKING ABOUT AMAZON, ESPECIALLY NOT IN COMMERCE. IT'S KIND OF HOW WE SEE THE LAND OF RETAIL AND COMMERCE. YOU DEFINITELY HAVE FOLKS LIKE AMAZON WHO HAVE DONE AN INCREDIBLE JOB OF BUILDING AN AWESOME TRANSACTIONAL EXPERIENCE. IF YOU WANT A SINGLE ITEM, A SINGLE BOOK, A SINGLE ROLL OF TOILET PAPER, AMAZON IS A GREAT PLACE TO SHOP. ACROSS THE UNITED STATES, THERE ARE NOT MANY TECH SAVVY PEOPLE WHO DO NOT HAVE AN AMAZON ACCOUNT. BUT I THINK THERE IS ANOTHER AUDIENCE OR PART OF THE RETAIL SECTOR THAT GOES INTO STORES FOR THEIR STOCK UP TRIPS. THAT IS THE CUSTOMER WE WANT, NOT JUST AT THE ONES THAT WANT A SINGLE OF ANYTHING, BUT EITHER THEY HAVE A BIG FAMILY, A SMALL TO MEDIUM-SIZED BUSINESS, OR EVEN A CHAIN OF CONVENIENCE STORES. THAT IS THE CUSTOMER THAT BOXED IS SERVING. EMILY: BUT AMAZON IS DOING SAME DAY DELIVERY, TO OUR DELIVERY IN SOME PLACES. WHY DO WE EVEN NEED TO BUY IN BULK? -- TWO OUR DELIVERY IN SOME PLACES. WHY DO WE EVEN NEED TO BUY IN BULK? >> WHEN YOU DO BUY IN BULK , YOU SAVE TRIPS TO THE STORE OR SAVE BOXES COMING TO YOUR HOUSE. YOU ALSO SAVE A LITTLE BIT OF MONEY AS WELL. SOME OF THE FEEDBACK WE GET FROM OUR CUSTOMERS IS THAT IF YOU DO BUY IN BULK YOU ARE NOT RECEIVING SIX DIFFERENT PACKAGES ON THREE DIFFERENT DAYS. YOU ARE GETTING ONE SHIPMENT ON ONE PREDETERMINED DAY. IF YOU ARE AN OFFICE MANAGER , YOU COULD BE BREAKING DOWN BOXES FOR HALF YOUR DAY. FOR US, GETTING THAT ONE SHIPMENT AT ONE TIME IS PRETTY POWERFUL. EMILY: ARE YOU GOING AFTER NONPRIME MEMBERS? DO YOU THINK THAT ONE TIME FEE IS STILL A BARRIER TO ENTRY FOR SOME PEOPLE? >> THAT I'M NOT SURE ABOUT IN TERMS OF PRIME MEMBERS OR NOT PRIME MEMBERS. I DO KNOW THAT YOU CAN'T THINK OF THE OPPORTUNITY AS JUST GOING AFTER NONPRIME MEMBERS. PRIME IS SO UBIQUITOUS. IT'S GOING TO SERVER GREAT NEED IN A LOT OF HOUSEHOLDS ACROSS THE U.S. IF YOU THINK ABOUT WALMART, THERE IS A DIFFERENT AUDIENCE. EVEN THOUGH THEY PARK THEIR CAR IN THE SAME PARKING LOT, THEY SELF SELECT IF THIS IS A STOCK UP TRIP OR MORE OF A TRANSACTIONAL TRIP. I THINK FOR THE SAME REASON -- OR THE SAME WAY IF THINKING IS GOING TO PROLIFERATE ONLINE. WE WANT THE CUSTOMER THAT IS OTHERWISE GOING TO THE OTHER SIDE OF THE PARKING LOT FOR THE STOCK UP TRIP. EMILY: WHAT ABOUT JET.COM, THIS IS A COMPANY THAT IS PROVIDING CUSTOMERS WITH STEEP DISCOUNTS. WHAT MAKES YOU DIFFERENT AND WHAT IS YOUR CUSTOMER ACQUISITION STRATEGY? >> I THINK JET IS DOING A GREAT JOB AND I HAVE A LOT OF RESPECT FOR THEM. WHAT THEIR STRATEGY IS AND WHAT THEY ARE GOING AFTER IS PUTTING THEIR SHIPS ACROSS FROM AMAZON AND TRAINING THE GUNS ON EACH OTHER AND SEEING WHO SURVIVES. FOR US, IT IS THE REASON WHY THEY HAVE NEEDED TO RAISE AS MUCH AS THEY HAVE RAISED. FOR US, WE ARE GOING AFTER THAT STOCK UP CUSTOMER. THE AVERAGE CONSUMER ON BOXED BUYS 10 ITEMS. WE ARE ALSO GOING AFTER THE CONSUMER THAT DOESN'T SEARCH FOR WHAT THEY WANT. THEY KIND OF KNOW WHAT THEY WANT WHEN THEY COME IN. THEY WALK THE AISLES. 90% OF OUR CUSTOMERS HAVE NOT USED TO THE SEARCH BAR. IT IS REALLY FOR THE CUSTOMER THAT IS GOING FOR THE STOCK UP TRIP AND TO WANDER THE AISLES. EMILY: THE CEO OF BOXED. COMING UP, AND UP-AND-COMING PLAYER IN THE COMMERCIAL SPACE HAS NEW CELEBRITY STATUS THINGS TO WINNING A MAJOR CONTRACT FROM

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