Vessel Raises $5M in Seed Funding Led by HG Ventures

Vessel, a NYC-based services-as-software company that makes donating excess inventory less costly than destroying it, has raised $5 million in a Seed funding round.

The round was led by HG Ventures, with participation from Flex Capital, Ford Street Ventures, and I2BF Global Ventures.

The company helps businesses donate excess inventory at a lower cost than destroying it. Vessel will use the funding to expand its operations and further develop its AI-enabled donation platform.

What is Vessel?

Founded by Teddy Raskin and Tommy Pennington, Vessel helps companies manage the donation of excess products through its GoodOS platform.

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Donating large volumes of unused inventory can involve several steps, including finding suitable nonprofit organisations, arranging transportation, tracking deliveries and ensuring donated products are not resold. These processes can make donations more expensive and complicated than product destruction.

Vessel uses AI and managed services to handle these tasks. Its platform verifies nonprofit recipients, manages logistics and documents each delivery.

The company works with businesses across beauty, healthcare, personal care, medical supplies and raw materials. It guarantees that the cost of each donation order will not exceed the cost of destroying the products.

How Much Funding Has Vessel Raised?

Vessel has raised $5 million in its seed funding round. The company has not disclosed its total funding or details of any previous investment rounds.

Who Invested in Vessel’s Seed Round?

The $5 million seed round was led by HG Ventures.

Other participating investors include Flex Capital, Ford Street Ventures and I2BF Global Ventures.

Why the Funding Matters

Vessel will use the new funding to scale its operations and further develop its AI-enabled donation platform.

The investment will support the company's efforts to help more businesses redirect excess inventory to nonprofit organisations instead of sending products to landfills or incineration.

Who founded Vessel?

Vessel was founded by Teddy Raskin and Tommy Pennington. The company is headquartered in New York City. Its founding year was not disclosed.

“The world’s leading brands have always wanted to do more with their excess inventory, but until now, donating at scale hasn’t been a secure, practical, or economically viable option,” said Teddy Raskin, co-founder and CEO of Vessel. “We built Vessel so that brands no longer have to choose between doing what’s right for their business and what consumers expect.

Market and Business Growth

While operating in stealth, Vessel helped businesses donate more than $83 million worth of products to over 5.5 million people. The company also reported that its work kept more than 2,000 tons of products from landfills or incineration.

At a pilot event for Smashbox in Los Angeles, Vessel distributed 10,440 products to 5,544 people.

Its work also extends beyond beauty products. A major medical distribution company used the platform to redirect more than 16 million syringes across 700 pallets to over 20 animal-care nonprofits in six states.

What Happens Next?

Vessel plans to expand its operations and improve its GoodOS platform as it works with more businesses and nonprofit organisations.

The company will continue helping brands manage product donations, including recipient verification, logistics and delivery documentation, while keeping costs within their existing product destruction budgets.

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