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Both Harry s and Billie have had their acquisitions by larger razor makers challenged by the Federal Trade Commission this year.
While not all startup and direct-to-consumer brands are likely to face the same regulatory hurdles, venture capitalists active in the space say the deals highlight how founders can consider other avenues for growing their business and finding a buyer.
Expanding into new product areas, working with a SPAC, and striking deals with middle-tier players are all options that VCs think consumer-focused startups should consider.
BARK
BarkBox, a subscription service for pet owners, is going public via a merger with a special acquisition corporation (SPAC), the company announced Thursday.
The deal is the latest in a string of SPAC-backed IPOs over the last year.
BarkBox will merge with the blank-check company Northern Star Acquisitions Corp. in a $1.6 billion deal, including debt, according to the announcement.
Once the deal closes, Northern Star Acquisitions Corp. will list under a new ticker, BARK, on the New York Stock Exchange.
Since the outbreak of the pandemic, quarantining Americans have turned to furry friends for comfort. Pet adoptions and related spending has soared.
Dec. 16, 2020 10:00 pm ET
BarkBox Inc., a startup best known for its monthly subscription service for dogs, is merging with a blank-check company in a $1.6 billion deal, including debt, according to people familiar with the matter.
The acquisition by Northern Star Acquisitions Corp., which is expected to raise $454 million, could be announced as soon as Thursday, they said.
The deal seeks to capitalize on a pandemic-fueled rise in pet adoptions and pet-related spending that led Petco Animal Supplies Inc. to file for an initial public offering, and pushed online pet-supply store Chewy Inc.’s latest quarterly sales up 45% year-over-year.
Spending on gifts for pets are up 21% this year compared with 2019, a bigger jump than spending on gifts for humans, according to a recent report by PricewaterhouseCoopers LLP.