Casper invented a category, won the marketing war, and still couldn't make money. They turned mattress buying from a dreaded showroom experience into a fun unboxing video. Revenue hit $500 million. The problem: foam mattresses are a commodity. Once fifty competitors sell basically the same product, you're just burning cash on Instagram ads. IPO'd at a fraction of private valuation. Taken private at a bigger discount. The DTC mattress dream compressed like, well, a mattress in a box.
Founded
2014
HQ
New York, NY
Total Raised
$340 million
Founder
Philip Krim
Status
Private (taken private 2022 for $286M)
Website
casper.comTHE ORIGIN STORY
Five co-founders — led by Philip Krim — were frustrated by the mattress buying experience. Mattress stores were confusing, overpriced, and relied on aggressive salespeople.
They launched Casper with one mattress, shipped in a comically small box, with a 100-night free trial. The marketing was genius: unboxing videos went viral, and "bed-in-a-box" became a category overnight.
WHAT THEY ACTUALLY DO
Direct-to-consumer mattresses and sleep products. Mattresses range from $395-2,899.
Also sells pillows, sheets, bed frames, and a sleep tracking device (Casper Sleep Tracker). Sold through casper.com, 67 retail stores, and wholesale through Costco and Nordstrom.
THE PRODUCTS
Casper Original Mattress, Casper Wave Hybrid, Casper Snow (cooling), Casper Pillows, Casper Sheets, Glow Light (sleep lamp), Casper Dog Bed, Casper Sleep Tracker.
HOW THEY GREW
Went public in 2020 at a $575 million valuation (down from $1.1B private valuation). Struggled as a public company.
Taken private by Durational Capital Management in 2022 for $286 million — a 42% discount to IPO price. Now operating privately, trying to reach profitability away from public market scrutiny.
THE HARD PART
Commoditization. Casper created the bed-in-a-box category, but dozens of competitors copied it immediately — Tuft & Needle, Purple, Leesa, Nectar.
The differentiation between foam mattresses is minimal. Customer acquisition costs skyrocketed as every mattress startup bid on the same Google keywords.
Casper spent $423 million on marketing in five years and still couldn't turn a profit.
WHO BACKED THEM
Target Corporation, NEA, IVP, Lerer Hippeau, Norwest Venture Partners
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