Vessel, a New York-based startup helping companies donate excess inventory instead of destroying it, has raised $5 million in seed funding. The round was led by HG Ventures, with participation from Flex Capital, Ford Street Ventures and I2BF Global Ventures.
The firm is investing in an AI-driven system that helps brands oversee product donations on a large scale. Its aim is to allow enterprises to donate unused goods at a lower cost than destroying them, thus helping businesses get rid of surplus stock.
According to Vessel, brands waste an estimated $163 billion in excess inventory every year. Many companies choose to destroy unsold products because managing large-scale donations can involve additional costs, logistics and compliance requirements.
Vessel aims to change this by managing the entire donation process, from finding suitable nonprofit organisations to arranging transportation and documenting deliveries.
AI Platform Simplifies Product Donations
Vessel has developed GoodOS, an AI-enabled platform that helps brands identify suitable nonprofit recipients for their excess products.
The technology analyses more than 550,000 nonprofit organisations using over 160 million data points. Potential recipients are also reviewed by human experts, and only organisations that pass the review process receive Vessel Certified status.
Once a donation is approved, Vessel manages the logistics, including freight arrangements, shipment tracking and delivery records. This gives companies the documentation needed by their finance and sustainability teams.
The company also guarantees that its donation service will cost less than destroying the products. This allows brands to redirect money already allocated to product destruction towards donations.
More Than $83 Million in Products Donated
While operating in stealth, Vessel helped brands donate more than $83 million worth of products to over 5.5 million people. The company also reports that its work has kept more than 2,000 tons of products away from landfills and incineration.
Its customers include beauty brands Sol de Janeiro and Smashbox, part of Estée Lauder Companies.
During a pilot Impact Day in Los Angeles with Smashbox, Vessel helped distribute 10,440 products to 5,544 people.
The platform is also being used beyond the beauty industry. A major medical distribution company redirected more than 16 million syringes, spread across over 700 pallets, to more than 20 vetted animal-care nonprofits in six US states.
In another project, a global food and agricultural company used excess raw materials to produce more than 250,000 bars of soap. The products were distributed through community hygiene programmes in Tanzania, Nepal and Madagascar.
Experienced Founders and Industry Advisors
Vessel was founded by Raskin and co-founder and CTO Tommy Pennington. Raskin previously built KOA Supply, now known as Cato Healthcare Supply which delivered more than 72 million medical products to healthcare systems during the COVID-19 pandemic before being acquired in 2024.
He later started a donation service to help distribute excess medical inventory to people who needed it. That experience helped shape the idea behind Vessel.
The company has also brought in industry advisors with experience in beauty, consumer health and logistics. They include Debra Perelman, former president and CEO of Revlon; Pamela Gill Alabaster, former chief sustainability officer of Kenvue; and Jeffrey Wolpov, senior vice president at Ryder System.
Vessel was also selected as one of 45 companies worldwide for Cohort 7 of the 100+ Accelerator, a sustainability programme backed by major companies including AB InBev, Unilever, Coca-Cola, Colgate-Palmolive, Danone and Mondelēz.
With its $5 million seed funding, Vessel aims to expand its donation platform and help more businesses turn excess inventory into useful products for communities rather than sending it for destruction.
