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.
Enjoying the read? Subscribe for free to one of the fastest-growing newsletters and get weekly coffee news (TL;DR updates) delivered right to your inbox.