Public Goods, the digitally native, membership-driven, one-stop-shop that offers high-quality, sustainable essentials across grocery, household, and personal care, has received a significant strategic investment from the Growth Fund of L Catterton

WHO: Public Goods launched in 2017 and makes its own brand of products with a sustainable bent, like personal care, but also a small range of pantry and household goods. The brand also offers a $59 per year membership that gives users a discount on products that the business claims brings the cost down to wholesale prices. So far this year, with the demand for online shopping and products accelerated by the pandemic, Public Goods said sales have increased more than five times since February.

With approximately $20 billion of equity capital across seven fund strategies in 17 offices globally, L Catterton is the largest consumer-focused private equity firm in the world. L Catterton’s team of nearly 200 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad partnership network. Since 1989, the firm has made over 200 investments in leading consumer brands. L Catterton was formed through the partnership of Catterton, LVMH, and Groupe Arnault.

WHY: The L Catterton investment further accelerates the Public Good’s growth by supporting the rollout of new product categories and expansion into more marketing channels, with a focus on driving customer acquisition.

IN THEIR OWN WORDS: “Excitement is reverberating throughout the Public Goods team,” said Morgan Hirsh, Public Goods Founder and Chief Executive Officer. “We’ve always had a big vision, and we’ve been able to accomplish a lot with our small, highly dedicated team. As we look to the future, L Catterton has the capital, resources, and experience to help us achieve our next phase of growth and deliver more of the high-quality products and benefits that our members have come to expect.”

“Public Goods’ model capitalizes on several compelling trends including consumers’ heightened focus on healthy living and a preference for clean, sustainable, and ethically sourced products,” said Chris Roberts, Partner at L Catterton Growth Fund. “With a broad product offering and demonstrated demand across a wide range of personal care and household essentials, Public Goods has differentiated itself as a one-stop-shop and offers an accessible and affordable solution to members across the country. We are pleased to be working with their talented team to attract new customers and expand its product offering.”

DETAILS:

• Public Goods received a $15 million investment from L Catterton.
• According to Crunchbase, the business raised $6.8 million prior to the L Catterton investment.
• The company has experienced significant growth as demand for e-commerce rises, with sales increasing more than 5x since February 2020.
• Public Goods just landed its first retail distribution deal with CVS launching in 2,000 stores.
• The company is looking to expand its product range and categories including a line for pets in the coming weeks.
• In 2016 Hirsh raised $100,000 of seed money, half of which came from Ferchak, and launched the company as Morgans.
• In March 2017 investor Skip Battle, CEO of Ask.com gave Morgans $300,000 for a 10% share in the company, which was used to rebrand the company as Public Goods and connect with crucial advisors.
• A few months later the team launched its first Kickstarter campaign for Public Goods with a fundraising goal of $20,000. Within 38 days of its launch, more than 10,000 people had backed Public Goods with nearly $700,000, more than 30 times the original target. These statistics placed Public Goods in the top 0.2% of all Kickstarter campaigns. After the Kickstarter success, the brand received at least three emails a day from investors.
• In September 2018 Public Goods raised $3 million in seed funding. The round brought the total capital raised to date to more than $4 million and was led by Yes VC with participation from Listen Ventures, Day One Ventures, and existing investors. Caterina Fake, General Partner at Yes VC, and Rick Desai, Partner at Listen Ventures, will join the Public Goods’ Board of Directors. L Catterton has significant experience investing globally in differentiated consumer brands including those with a focus on sustainability. Current and past investments include Nutrafol, Tula, ThirdLove, Rhone, Zarbee’s, and Home Chef.