Online mattress retailer Leesa secures $9 million from investors
July 9, 2015— Furniture Today,
VIRGINIA BEACH, Va. — Leesa has become the latest online mattress retailer to secure venture capital money, closing this week on a $9 million round of funding led by the private equity firm TitleCard Capital.
The retailer, which sold its first mattress only six months ago, said it will use the money to increase its marketing in the United States and begin sales in the United Kingdom later this month.
“It’s amazing to think that after just six months, we’re on track to achieve $30 million in sales in our first year and will help more than 10,000 people sleep better,” said David Wolfe, co-founder and CEO. “Leesa is at the busy intersection of an industry ripe for disruption, a fabulous groundbreaking product, and an extraordinary team of direct-to-consumer, online marketers, social media experts, designers, developers and operators.”
Leesa’s executive team includes Jamie Diamonstein, former president of mattress manufacturer Paramount Sleep.
The retailer’s product line currently consists of a single mattress made of several types of specialty foams. It is listed on the company’s website at $525 in twin and $890 in queen, which includes free shipping and a 100-night trial.
Leesa officials said they soon hope to complete a second round of venture capital funding that will allow the company to open up new sales channels, launch additional products and extend the brand into related businesses.
TitleCard Capital is based in New York and includes celebrity investors Eric Decker, a wide receiver for the New York Jets, and Henrik Lundqvist, a goalie for the New York Rangers.
Leesa’s funding comes less than a month after rival online mattress retailer Casper secured $55 million in a second round of venture capital funding.
Casper was launched 14 months ago, and like Leesa, its product line currently consists of a single foam mattress.