Hooch made an announcement today that it raised $5 million in seed funding right after it launched Hooch Black, its concierge service. The basic subscription of $9.99 offered by the company gives you one free drink per day from a wide range of partner bars and restaurants. Hooch Black (which requires you applying for it, and which costs $295 per year) adds concierge service, hotel deals, and other perks on top. Although Hooch had already raised $2.75 million in two rounds of pre-seed, CEO and co-founder Lin Dai said it was essential to bring in strategic investors than it was to raise a lot of money: “We feel like the most significant thing for our business is the relationships.”
After all, he said the entire hospitality industry is under the control of “a few key companies,” so triumph is established by working with those companies, This isn't a situation where someone can rise above you by outspending you. The funding was organized by Blue Scorpion Investments and Revelis Capital Group, with involvement from Warner Music Group(Dai said that Hooch would be working with Warner Music on events, promotions, and content), Diesel CEO Stefano Rosso, Access Industries Holdings, FJ Labs, former Comcast CTO Sree Kotay and others.
At the same time, the company is undergoing an expansion of its advisory board to get on board Bonin Bough (former chief media and e-commerce officer at Mondelez), Bob Hurst (the ex-vice chairman of Goldman Sachs), and Teymour Farman-Farmaian (ex CMO and CRO at Spotify and now acting as the managing director of Xapo, the Bitcoin wallet company). Dai added Hooch, this summer, is all set to launch its blockchain initiative. When asked the relation between blockchain and free drinks, Dai didn’t go into any details, but he indicated that by starting its own cryptocurrency token, Hooch would be looking forward to working with partners in creating a “decentralized model for customer rewards.