Oct 4, 2022 - Economy

Canned water brand Liquid Death now valued at $700 million

Illustration of a pattern of beer can tabs.

Illustration: Brendan Lynch/Axios

Liquid Death, a maker of branded water products in aluminum cans, raised $70 million in Series D funding led by Science Ventures at a $700 million valuation.

Why it matters: The Los Angeles-based company and its early investors were widely mocked upon launch.

Details: This is an insider-led round, so we can view the giant valuation a bit skeptically, but Liquid Death reports a $130 million revenue run-rate for 2022 (up from $45 million in 2021) and is having its core product copied by legacy bottled water brands like Dasani.

  • Science's Peter Pham tells Axios that around 40% of the company's Amazon revenue now comes from flavored products, which launched around six months ago, and that millions of dollars come via merchandise sales.
  • He adds that Science led the round via an SPV, given that its original check came out of a small seed fund, and that the goal was to prevent LP dilution.

Other investors include PowerPlant Partners, Convivialité Ventures, Hinge Capital, Access Capital, Live Nation and individuals like Whitney Cummings, Tom Segura and members of Swedish House Mafia.

Competition: A rival upstart called Path Water just raised $30 million.

The bottom line: Don't underestimate the power of unconventional marketing.

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