Spotlight Oral Care has raised $15 million from Development Capital to fuel expansion plans.
WHO: Based in Galway, Ireland, dental care brand Spotlight Oral Care was founded in 2016 by Dr. Lisa Creaven, Dr. Venessa Creaven, and Dr. Barry Buckley to fill a gap in the market for safe, effective products with a clean, high-performance oral care brand. Every Spotlight Oral Care product is cruelty-free, vegan, free from toxic ingredients, and is not tested on animals. In addition, their dental floss is made from recycled ocean plastic and their toothpaste tubes are made from sugar cane.
WHY: With the investment, the Spotlight team plans to develop new product innovation in the oral care space, ramp up marketing, hire additional team members, and expand inventory and distribution.
IN THEIR OWN WORDS: Dr. Vanessa Creaven, Spotlight Oral Care co-founder and CEO, said: "This investment by Development Capital is a pinnacle moment for us in the business as we have experienced rapid business growth in the last 12-18 months. The financial support and expertise that comes with this investment will allow Spotlight Oral Care to expand further and continue to help us revolutionize oral care. We are thrilled to be working with a team that supports SMEs like us and look forward to having Andrew on our Board of Directors."
Announcing the first investment made by Development Capital Fund II, Andrew Bourg, co-founding partner of Development Capital, said: "Spotlight Oral Care is precisely the type of Company that Development Capital II was set up to support, being a high-growth company with an experienced and ambitious management team and a strong track record. We are delighted to partner with Vanessa, Lisa, Barry, and the Spotlight Oral Care management team. We look forward to supporting their ambitious plans to further scale and internationalize the business."
- Spotlight Oral Care received a $15 million investment from Development Capital for a minority stake in the business.
- In January 2021 the brand enlisted a new shareholder to fuel US expansion. Dermot Desmond's equity fund IIU invested €2 million in exchange for a 10% share of the company.
- 60% of the revenue comes from its website, with the company's DTC shoppers having a 50% repurchase rate and 3,000% growth online in 2020.
- The brand said sales increased from $2 million to $5 million to $20 million in the last three financial years and expects sales to double in the next financial year.
- The brand is distributed primarily in Ireland and the UK through Boots, Tesco, and Dunnes Stores, and the US through Ulta Beauty, CVS, and target.com.
- As part of the investment, Andrew Bourg, co-founding partner of Development Capital and Partner of BDO, will join the Board of Directors.
- Mark Mulcahy & Des O'Brien of Mazars provided financial diligence advice; Olivia Lynch & Susan Grennan of KPMG provided tax advice, and John Troute & Blathnaid Hamilton of Flynn O'Driscoll provided legal advice on the transaction for Development capital.
- Spotlight Oral Care was advised by Toure Capital, led by Michael Toure who provided corporate finance advice on the transaction; Deirdre MacCarthy of Maples provided legal advice.
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