Care/of scoops up $12M in a new Series A, its second fundraise since November.
At this point, at least in terms of valuation and momentum, it’s easy to argue that Care/of is currently king of the hill in the new emerging premium supplements and vitamins space.
NEW YORK — TechCrunch is reporting that modern luxury vitamins upstart Care/of has just closed a new $12M Series A, a mere eight months after securing a $3M seed last November from the likes of Andy Dunn and others.
In a call with Lean Luxe early last month, CEO Craig Elbert quietly revealed the raise, and said that it would value the company in the $30M+ range. Care/of’s new round is led by Goodwater Capital (Frank & Oak), alongside participation from RRE Ventures (The Skimm; The Outline), Tusk Ventures, and Juxtapose — all of which previously participated in the brand’s seed in November.
At this point, at least in terms of valuation and momentum, it’s easy to argue that Care/of is currently king of the hill in the new emerging premium supplements and vitamins space. It’s a subcategory of the wellness movement, and it’s become quite active recently. Right behind them, per our survey of the marketplace, are a handful of noteworthy new peers: The Nue Co, Ritual, and Goop Wellness (which would qualify as the top name here, except for the fact that it’s tied into Goop and is not a standalone firm). All of these brands are set apart from traditional supplements providers by way of smart, modernistic branding (rather than anything ‘green’ or ‘crunchy’), and each features a consistent, consumer-centric approach to vitamins.
The most surprising revelation in Care/of’s announcement is the size of its team — currently 70 full-time employees. The vast majority of those workers, 50 to be exact, work at the brand’s fulfillment center, “working on engineering, design, marketing, supply chain stuff, and, of course, R&D.”
Here’s what you can expect from Care/of in the near future after this investment: “A pipeline of new products, including vitamins, supplements, and other wellness products”.
The biggest challenge for the company today is twofold: First, the customer acquisition costs associated with the subscription model; and second, the fact that vitamins, while helpful, are not essential. This first part was nicely articulated by competitor Olly at TechCrunch: “You have to factor in your acquisition cost for a new customer and how long you keep the new customer, and it tends to be that acquisition prices are extremely high right now given the online ad world. So you’ve got to be able to withstand [those costs] while you’re building a brand.” We imagine that co-founders Elbert and Akash Shah, with the help of Andy Dunn, will be able to find their way through this challenge.