#497
Liquidity For Canned Liquids
Published:
Jul 17, 2023
Author:
Sarah Parsons Wolter
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Liquid Death, the canned water company that promises to murder your thirst, made a splash in the news this week when it was announced that the company intends to go public next year and has hired Goldman Sachs to lead. The Los Angeles based company was valued last year at $700m and its cap table includes celebrity investors like Swedish House Mafia, Machine Gun Kelly, Tony Hawk and Whitney Cummings.
The hype around the company has led at least 240 superfans to sport tattoos of the Liquid Death logo, but it remains to be seen whether the company – which was reportedly unprofitable and had 12% gross margin as of last year – can turn a profit. The news of a potential public offering comes off the heels of Cava’s strong debut as a public company. Since its IPO last month, the Mediterranean restaurant chain’s stock is up 25% and has been received favorably by investors.
So, why is the financing strategy of a water company interesting, you might ask? The announcement implies the IPO market is finally opening after more than two years of stagnation, paving the way for long-awaited mega deals from the likes of Arm, Stripe and Instacart. It could also breathe life into the depressed late-stage VC financing environment.
Portfolio News
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Liquidity For Canned Liquids
Liquid Death hires Goldman Sachs, aiming for 2024 IPO - If it goes forward, Liquid Death’s listing would represent a test for VCs’ on-and-off interest in startups that compete in more traditional sectors rather than internet or software. Read more
Even with a $700m valuation, Liquid Death may need a lot of luck to become liquid gold - Former adman Mike Cessario has a plan to drastically cut costs at his buzzy, money-losing water brand by shifting production to the U.S. Read more
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Select Financings
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