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From Home Furnishing Business
Bed-in-a-Box Producer Leesa Gets $23M in New Funding
July 25,
2017 by Larry Thomas in Economic News, Industry 
Leesa Sleep, one of the largest bed-in-a-box manufacturers, said it has completed a $23 million round of venture capital funding led by an investment firm headed by John Replogle, CEO of Seventh Generation, a producer of environmentally-friendly cleaning and personal care products.
The mattress producer said Replogle would become Leesa’s chairman of the board, and said former Seventh Generation Chairman Peter Graham would join the board.
The company said Replogle and the other new investors are aligned with Leesa’s social mission, which features providing a free mattress to a needy person for every 10 mattresses it sells.
"We are humbled and invigorated by the extraordinary response Leesa has received in such a short period of time, and we are excited to use this round of funding to broaden our reach to customers and influencers alike as well as expand into the retail category," said David Wolfe, co-founder and CEO of Leesa. "As a company that values its impact on the world as much as its financial prosperity, we are also thrilled to be able to use this success to drive toward our audacious goal of ending homelessness."
In an interview with CNBC, Wolfe said Leesa had sales of about $80 million in 2016 and should hit $150 million this year.
Leesa was founded in 2015 with a $7 million round of venture capital funding that included celebrity investors Adam Levine, Jimmy Kimmel and Kate Hudson.
The company also has endorsement deals with former Olympians Michael Phelps and Aly Raisman.
“The combination of Leesa's exceptional products, experienced management, customer service and dedication to social good is what has propelled them forward in the category," said Replogle. "This round will help to ensure Leesa is a household name known as much for its amazing sleep products as for its social mission and goal of providing all people with a place to rest their head at night."
He said the new funds will be used to invest in the brand and to drive growth by launching a series of new products, as well as to extend the reach and impact of its partnerships, events and celebrity relationships based around a common goal to be a force for both wellness and good.
Wolfe co-founded the company with Jamie Diamonstein, a former executive at mattress producer Paramount Sleep.
Led by fast-growing start-ups such as Leesa, Casper, Tuft & Needle and Saatva, the bed-in-a-box category – in which a mattress is purchased online and shipped direct to the consumer after being rolled into a shipping carton – has exploded on the mattress retail world the past three years.