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Casper, the NYC-based mattress company, is taking a crack at the sleepy IPO market.

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Are your finances keeping you up at night?  That’s O.K.  Casper, the popular mattress and bedding company, is preparing an initial public offering.  On Friday the company filed its S-1 document, a key step in the IPO process that allows investors to review the details of the business.

The Story:  Casper was founded in 2014 and has taken the mattress world by storm with its catchy marketing campaigns, streamlined product portfolio, and direct-to-consumer business model.  The company sells only three mattress types as well as accessories including pillows, linens and bed frames.     

The Reality:  Casper isn’t a mattress company – they are a marketing company.  The company’s S-1 document reveals they don’t manufacture any of their own products, instead relying exclusively on third-parties.  Yet they are widely regarded as one of the most innovative consumer product companies.  In 2016 they were named the most innovative brand at the Digiday Awards. 

Cash Flow Problems: The company’s name isn’t the only spooky part of the business.  Casper ghosted $69 million of cash in 2018 despite selling $312 million worth of product.  After debacles such as the failed WeWork IPO, investors aren’t as enthused about money-losing operations.

  • The Takeaway:  Casper’s IPO will be closely watched by investors due to the high-profile, consumer-facing nature of the business.  It will be a big test for the IPO market and will set the tone for 2020.

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