Somé is closing in on Series A
Somé, a Canada-based maker of heat-wicking bedding and sleepwear, is closing a C$2 million Series A round, CEO Lara Smith tells Axios exclusively.
How it works: Somé's products provide cooling for people who experience night sweats, particularly those going through menopause.
Details: About 75% of the round was raised as of March, but capturing that remaining 25% took some effort when funding dried up after the collapse of Silicon Valley Bank, Smith says.
- Somé is now finalizing terms, including valuation, with the round including angel and PE firms from both the U.S. and Canada, she says.
Catch up fast: Somé already received C$1.5 million in funding via the Canadian government's Business Scale-Up and Productivity program.
- Proceeds will be invested in expanding into new markets and new product categories.
- The interest-free, repayable funding was delivered via PrairiesCan, which promotes economic growth in the Canadian Prairies.
What's next: It has an aggressive revenue target for retail and DTC, quadrupling revenue by the end of 2024, when it will begin to prepare for a large Series B round to fund international expansion.
- It intends to add men's loungewear and its next generation of sheets will be marketed to hospitals and medical care facilities.
- It also wants to build a pipeline of wholesale customers among big retailers.
Zoom in: The company's revenue will grow triple digits this year, Smith says, but declined to comment further at this time.
- It's not cash flow positive, as it is spending big on customer acquisition at this stage, she says.
The big picture: The market for Somé is large given studies have shown a significant prevalence of night sweats, Smith says.
- About 10 years ago, when the company was founded, menopause was still a taboo topic, she says.
- But since the pandemic, the conversation has opened up around the topic, boosting the fortunes of her company, Smith says.