Super Coffee Slashes Valuation Amid Strategic Shift

Super Coffee Slashes Valuation Amid Strategic Shift

Super Coffee, a beverage startup with celebrity backing, has faced a challenging period as it sought to raise funds on a lower valuation and streamline its product offerings. After a successful $106 million Series C round in 2021 at a valuation of over $500 million, the company aimed to raise a $10 million convertible note at a $250 million cap in the following year, signaling a valuation cut by half. The brand also underwent layoffs and discontinued 30 products in an effort to simplify operations and reduce cash burn, with a projection of $45 million in net revenue for 2023, down from $54 million the previous year. Despite these setbacks, Super Coffee is focusing on profitable growth, with the co-founder expressing a vision to become the leading better-for-you coffee platform. The company's shift in strategy comes amid a tougher funding environment for consumer startups, where the emphasis has moved from high valuations based on growth rates to sustainable, profitable expansion.

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