Birchbox invaded by Vikings, leaving investors empty-handed
Recode reports that Birchbox’s investor, Viking Global — who led Birchbox’s last $60m funding round in 2014 — will buy out its other existing VC investors with a new, $15m investment in the OG subscription beauty box.
That also means Birchbox’s other investors are walking away with nothing to show for the collective millions they’ve poured into the company to date.
The ‘For Sale’ sign’s been on the lawn for a while now
The 8-year-old company, worth nearly $500m at its peak, has been for sale since last summer, reportedly in acquisitions with retailers like Walmart.
(Most, recently, Birchbox was courting QVC in what Recode’s sources say would’ve been a fire sale).
Unfortunately for Birchbox, none of these talks materialized, and the company is left to dig themselves out of “tens of millions of dollars in debt.”
Another case of the trailblazer getting trailblazed
Since launching in 2010, they’ve faced an influx of look-alike beauty boxes from competitors like BoxyCharm, Ipsy, Julep, and Sephora, to name just a few.