Zulily Zips Out of Stealth and Raises $4.6M, Led by Maveron and Ex-Blue Nilers

the product,” Cavens says. Consumers will be able to sign up for free; only members can see the sales. The advantage over shopping at an Amazon.com or other commerce site, Cavens says, boils down to “price, and discovery” of sale items.

Cavens says he had been talking with Vadon over the past six months about starting an “interesting and different business” around specialty retail and e-commerce. Having relatively young kids himself, he got excited about Zulily’s niche. And he says he’s not aware of other private-sale sites based in Seattle, nor are there many in Silicon Valley.

The startup is now up to five employees and has office space at Maveron. Cavens says he’s looking to hire for several open positions (such as buyer, Web developer, and operations and logistics admin) and hopes to expand the staff to a little more than 10 in the new year.

I also asked about lessons learned from his Blue Nile days. “It’s in my DNA to deliver a phenomenal customer experience,” Cavens says. “Retail is very much about execution. I learned that dealing with the thousand little details that make a business great. I’ve had that ingrained in me. It sounds plain and simple, but I think people get somewhat distracted from that.”

As for the name, “Zulily” doesn’t actually mean anything, Cavens says. “We spent a lot of time coming up with something with an interesting, fun element to it. It’s unique. It’s a hard process. It’s so defining for eternity after.” He says he “talked to a lot of moms and folks around” and got positive feedback.

It remains to be seen whether the current economic climate will end up helping or hurting Zulily’s chances, but for now its timing looks fairly strong. “We’re excited from a space standpoint and a market standpoint. We’re trying to pull together a very strong team,” Cavens says. “We’re trying to build a culture around delivering a top-notch experience, and having fun along the way.”

Author: Gregory T. Huang

Greg is a veteran journalist who has covered a wide range of science, technology, and business. As former editor in chief, he overaw daily news, features, and events across Xconomy's national network. Before joining Xconomy, he was a features editor at New Scientist magazine, where he edited and wrote articles on physics, technology, and neuroscience. Previously he was senior writer at Technology Review, where he reported on emerging technologies, R&D, and advances in computing, robotics, and applied physics. His writing has also appeared in Wired, Nature, and The Atlantic Monthly’s website. He was named a New York Times professional fellow in 2003. Greg is the co-author of Guanxi (Simon & Schuster, 2006), about Microsoft in China and the global competition for talent and technology. Before becoming a journalist, he did research at MIT’s Artificial Intelligence Lab. He has published 20 papers in scientific journals and conferences and spoken on innovation at Adobe, Amazon, eBay, Google, HP, Microsoft, Yahoo, and other organizations. He has a Master’s and Ph.D. in electrical engineering and computer science from MIT, and a B.S. in electrical engineering from the University of Illinois, Urbana-Champaign.