Boll & Branch,
which sells sustainably sourced sheets, pillows, mattresses and towels,
is announcing that it has raised $100 million in a strategic investment
from L Catterton’s Flagship Buyout Fund.
This looks like a big
change from the company’s previous approach to funding. It was
self-funded for its first two years (resulting in what CEO Scott Tannen
described as “a lot of maxed out credit cards and five mortgages on my
house”), and even when it started looking at venture capital, it only
raised a total of $12 million from a single institutional backer, Silas
Capital.
In fact, when Recode wrote about Boll & Branch’s Series B last year, it described the startup as one “that wants to raise as little venture capital as possible.”
Tannen
said that when he founded the company with his wife Missy, they wanted
to “build a sustainable business from the ground up,” and that wasn’t
just about the products — they didn’t want to build a company that was
“ultimately designed from day one to be sold.”
As a result, he
said, Boll & Branch has been profitable for the past four years and
is now bringing in “nine-figure revenue.” He compared it to other L
Catterton investments like The Honest Company and Peloton, companies
that “have become the winner in the startup competition” and are ready
to “really become household names.”
In a statement, L Catterton’s
Nik Thukral described Boll & Branch as “one of the most beloved
bedding brands” and said it “capitalizes on several compelling trends
including the emergence of authentic, pure, and chemical free products
that can be traced back to their origin, as well as consumers’
heightened focus on healthy living.”
The company’s next steps
include expanding internationally — Tannen said that while the company
doesn’t currently sell outside the United States, “It’s hard to imagine a
country or market in the world that doesn’t make sense for Boll &
Branch.”
It will also continue expanding the product lineup.
Tannen hinted at “really interesting product introductions” coming in
the next few months. They might not be the most obvious additions to the
lineup, but he said these decisions come from asking, “What does the
home goods brand of the future look like?”
He added, “That’s what
we’re trying to be, versus trying to look in the shopping mall and just
creating a new version of something [that already exists].”
***
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