The Weird Eve Sleep IPO and the Mattresses Hype

Mattresses. Everyone needs to sleep on one. But the current mattresses hype is really something to behold. Now, UK’s Eve Sleep, not three years old, went public in good old New Economy fashion.

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Eve Sleep got £35 million on a valuation of £140 million. From the stock exchange prospectus (PDF):

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On 15 March 2017, an investor subscribed for a further 206,773 Preference Shares. This investment was required to fund the Company’s short-term cash requirements and was made to protect the investor’s original investment while the business sought a longer-term funding solution.

The Company was re-registered as a public company on 12 May 2017 and by special resolution changed its name to eve Sleep plc.

Eve Sleep made revenues of just £12 million. The raised money will be used for marketing, of course:

The company, founded in 2014, says the £35 million will be put towards “advertising and marketing strategy and will be used as general working capital to support and implement the Company’s growth strategy.”

As I said, the mattresses hype is really something to behold.

More on this topic:

4 comments

  1. Fantastic result for all VCs but Is there anything left for public market investors? EVE Sleep should reach about £250m Revenue to justify £140m valuation. That would be 5% of £5b EU market which for me looks too optimistic. Other concerns are here http://intwits.com/uk/stock/EVE/

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  2. […] already reported on the IPOs of Boozt and Eve Sleep. In “the coming months”, we will also see Delivery Hero going […]

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  3. […] There is a handful of strategies to pursue in a world dominated by platforms. Digital brands going directly to customers (and thus having to build a direct relationship with them) is one of those. After headlines from Dollar Shave Club (now at Unilever) and Bonobos (now at Walmart), Casper will be going public soon. (Let‘s not talk about that other recent mattresses IPO.) […]

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  4. […] ​Now, how attractive do you think does this sound in the land of Prime? For $72, one needs to buy at least 24 “essential” items. For $48, one still needs to buy 16 “essential” items. I don‘t see this working out. Brandless is facing big challenges here. ​ A lot of people may look for cheaper, more predictable FMCG shopping online. But are those people willing to go for such comparatively large shopping cart values? I doubt this. ​ ​So, how did Brandless managed to ge $50 million in venture capital before launching? ​ ​Five words: ​ ​Dollar Shave Club and Jet.com. ​ ​The acquisition of direct-to-consumer brand Dollar Shave Club to Unilever was the biggest e-commerce exit last year; until Walmart bought Jet.com. Jet.com‘s Marc Lore on the other hand is now buying direct-to-consumer operations for Walmart to build an online portfolio that can take on Amazon. So, there is your clear exit strategy. Already, the press is talking about the “P&G for millenials”. Maybe P&G will buy Brandless if Walmart is not interested? ​ ​Building a direct-to-consumer business is one way to succeed besides Amazon and other big platforms and marketplaces. It is just not at all clear if Brandless‘ positioning will work. ​ ​Here‘s a hint though: Forerunner Ventures, the VC that invested in both Dollar Shave Club and Jet.com, is not (yet, at least) an investor in Brandless. ​ ​More on this topic: ​ ​* Here Is What a Big Part of Amazon’s Endgame Looks Like ​* Here’s the Investment Thesis of the VC Behind Jet.com and Dollar Shave Club ​* U.S. Ecommerce After Jet.com and Dollar Shave Club: VC Is Back in Town? ​* Dollar Shave Club, Jet.com & the Rise of $1B+ Acquisitions by ‘Non-Tech’ Companies ​* Direct-to-Customer: What Mack Weldon, the Next Brand Superstar, Is Focussing On ​* Walmart Is Acquiring Bonobos for $310 Million in Cash ​* Inside Marc Lore’s Head, Who Will Either be Walmart’s Savior or Its Destroyer ​* The Weird Eve Sleep IPO and the Mattresses Hype […]

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