Dollar Shave Club valued at $ 615 million

    Three years ago, startup Dollar Shave Club launched a viral video, demonstrating a traditional shaving procedure from an unusual angle. More than 19 million people watched the video. Now the company's business in the delivery of shaving supplies by mail is estimated at $ 615 million. The assessment was carried out after the company received another investment of $ 75 million from Technology Crossover Ventures.

    “We now have 2 million customers who receive a package every month or every two months,” said Michael Dubin, CEO.

    The company's revenue is gradually increasing. So, in 2014, sales rose to $ 65 million, showing a threefold increase compared to the previous year. In 2015, the company hopes to gain $ 140 million. However, the startup is still not profitable. Yes, the viral video has helped the company get investment and a huge number of customers, but now the Dollar Shave Club spends more than it makes.

    The main item of expenditure is advertising. The company is trying to promote its service both on the Web and on TV, where advertising is very expensive.

    In terms of services, an average Dollar Shave Club client pays $ 7 a month to receive new razor blades by mail. Now the leadership is trying to expand the range by adding shaving gel, plus hair gel. There is another original product for which an ad was created, which has already collected 3 million views.

    The main investors of the company are Forerunner Ventures, Venrock, Pritzker Group Venture Capital, Comerica and Triple Point Capital.

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