KONA CAVE®

How KONA CAVE® profited from the pandemic dog boom, thanks to fast financing

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Kristen Geldermann

Founder of KONA CAVE®

About KONA CAVE®

The story of KONA CAVE® begins like every other story of a successful business, with an astonishing question - "What, there's no such thing?" Well, something that didn't exist has turned a longtime executive at Ralph Lauren into a successful entrepreneur. Kristen Geldermann's dog Kona, after all, loves sleeping under blankets, leaning against pillows, and scratching his nice and fuzzy sleeping pad before snoozing.

“However, there was no fancy and comfortable dog bed that they both liked. Nowhere. And so she just made it herself.“

Kristen loves design. Through her time in the textile industry, she knew how to make fabrics exquisite and appealing. After extensive research into dogs' sleeping instincts, endless cave bed prototypes, and more than two years of intensive testing, the patented Cuddle Cave Bed was developed. It looks fancy, supports the animals' natural sleeping needs, and reduces stress and anxiety. Even more, Kona loves it, and when a dog loves something, there's a good chance other dogs will be just as happy with it. And so it was. In the meantime, there was a whole range of KONA CAVE® products produced and it is fair to say: dogs would buy KONA CAVE®.

Challenge

KONA CAVE® did very well from the beginning and grew steadily over three and a half years. Then came COVID-19 and with the virus, there was an increase in desire for more people to adopt a fur friend. Kristen Geldermann recognized this trend very early and wanted to draw the attention of numerous new dog owners to  the most comfortable and beautiful dog beds in the world with online advertising. It was clear to her that this measure would be worthwhile and that the company would grow even faster. However, Kristen needed capital for the advertising, which was not included in her liquidity planning due to the sudden emergence of the pandemic. In addition, she wanted to launch the more accessible sister brand Sleepy Fox® in order to be able to offer great dog and cat beds to customers who needed more budget-friendly products, especially in the Corona era. To do this, she urgently required quick start-up financing which wasn't tough to secure.

Solution

The obvious solution was to go to the bank, which was not an option for Kristen. Apart from the fact that it is very difficult to convince banks to finance a marketing campaign, going there would be too complicated, too bureaucratic, and, above all, too time-consuming. She would rather invest this time and energy in her own company. Thus, Kristen needed another solution. That's when Banxware came into play. With Banxware's online financing solution, startups, small businesses, freelancers, and other self-employed professionals can both easily and quickly get short-term financing. The added advantage that comes along is that this financing is not tied to a specific purpose. In the case of KONA CAVE® and Sleepy Fox®, that meant,  that the purpose of the advertising campaign did not require long explanations and approvals. This way, Kristen was able to obtain the necessary capital for the KONA CAVE® advertising measures and for the launch of Sleepy Fox®, with just a few clicks and without much effort.

Result

Traditionally, advertising expenses have to be covered before it has an impact on the business and generates the desired sales. KONA CAVE® bridged this gap with short-term financing through Banxware, which not only massively increased its reach but also grew its sales. This in turn helped in quick loan repayment. Things went similarly with Sleepy Fox®. The Corona period was ideal for launching the more affordable product line and thanks to the start-up financing via Banxware, this was possible seamlessly without complications. We are certain that now, there are very many dogs who are very grateful to Kristen Geldermann for their cuddly, soft, and new favorite place to be.