Casper’s return to private life isn’t a canary for DTC companies going public

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Former Venture Backed Startups Casper is going private in a cash transaction, it announced today morning. Since its early-2020s IPO, Casper has struggled as a public concern, losing much of its value after its operating results failed to excite investors.

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Casper will sell for $6.90 per share, or about 94% “premium of the closing share price on November 12, 2021,” by its own math. When it listed, Casper sold its stock for $10 per share, rising from $15 per share in its early life to as low as $3.18 per share most recently.


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Why do we care about the planned exit of a public company from the public markets? Because Casper’s demise as an independent, growth-oriented DTC company details what can go wrong for such firms. And given that we’re seeing cash-hungry operations like SweetGreen and Rent the Runway List, it’s worth digging into what happened at Casper.

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This does not mean that every direct-to-consumer (DTC) company is the same. Or even Casper is completely DTC; It is not. But we can learn the same from Casper because it provides a living example of how a company can struggle after an IPO.

When we examine its results, it is clear that there was a cash issue and the company’s share price prevented it from defending itself, while also providing an opportunity for external hedging.

The Casper saga has a more broad meaning for DTC companies, but we’ll get to that at the end. to the numbers!

Why did Casper have to sell

Casper’s exit may seem like an inevitability in retrospect, but it’s worth remembering that the company enjoyed a brief return to pricing as of earlier this year:

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