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Electronic cigarette maker Juul Labs Inc. raised $ 650 million as part of a fundraiser that values the fast-growing but controversial start-up at about $ 15 billion, according to people who know well the subject.
of a round of financing that aims to raise $ 1.25 billion for the San Francisco company, according to a filing Tuesday with the Securities & Exchange Commission. The hedge fund Tiger Global Management invests $ 600 million, according to the same source.
Even for the growing Silicon Valley, Juul has experienced tremendous growth to become the sixth US start-up behind Uber Technologies Inc. and Airbnb Inc. Its price per share in the current round of financing is 56 times the price 2015, according to a Delaware filing in Delaware provided by Lagniappe Labs, a research company. This means that Juul's estimate was less than $ 300 million in 2015.
Juul sprays, introduced in 2015, have become a symbol of teenage status and a growing problem in schools US. According to a Wells Fargo analysis of Nielsen's sales data, Juul Labs captured 68% of the $ 1.9 billion US market for electronic cigarettes. This figure does not include Internet sales.
The rapid growth of the company has attracted the attention of regulatory agencies. In April, the Food and Drug Administration asked for information on its products and marketing as the agency reviewed its regulations on tobacco products. Juul says his products are aimed at adult smokers, and limits sales on his website to customers over 21.
The Juul device, which looks like a USB stick, delivers a potent dose of nicotine in a salty solution that smokers say mimics the feeling of inhaling cigarettes. The nicotine concentration of 5% liquid Juul is higher than most other commercially available electronic cigarettes. Juul flavors include "Creme Brulee" and "Fruit Medley", which critics said make it more appealing to minors.
In December, the company hired
Kevin Burns,
the former president of the yogurt maker, Chobani, at the head of the company. The company quickly expanded its ranks. His website lists dozens of jobs that he seeks to fill in cities across the United States as well as in offices in Singapore, London and Paris.
The company, stemming from a vaping start-up called Pax Labs in 2017, had previously According to PitchBook, it raised more than $ 100 million in venture capital. Past investors include Fidelity Investments and Tao Capital, a venture capital firm co-founded by
Nick Pritzker,
who is a director of Juul.
Bloomberg and The Information, a technology news site, reported news of Juul's latest funding.
-Eliot Brown contributed to this article.
Write to Jennifer Maloney at [email protected]
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