Top New York investment fund Tiger Global Management is set to invest $600 million in e-cig company Juul. According to a source, the investors have agreed to put in more than $1 billion at a post evaluation of roughly $16 billion.
Several traditional venture capitalists have always steered clear of investing in controversial industries like marijuana and firearms. Now, with firms like Tiger Management, it’s pretty safe to say that Juul’s e-cigs are a class apart. They are a spin-off from Pax Labs, a vaping company, and shows Juul is different compared to other e-cigs. According to Joel Johnson on CoDesign, “It’s black and flat with sharp edges, like half a pack of Darth Vader’s chewing gum.”
Juul’s e-cigs are designed in such a way as to look almost demure. You can insert a replaceable rod in Juul which uses a proprietary nicotine sat mixture. While other e-cigs deliver a nicotine strength of around 2.5%, Juul delivers 5% strength.
The identities of other investors have not been revealed. Juul is a fast growing company with revenue which grew more than 700% in the first quarter. According to data from Neilson and Wells Fargo, its share in the e-cigarette market exceeds 60%. Juul’s claims that its products help smokers quit.
Tiger, an early investor, has been buying Juul’s shares from earlier shareholders on the secondary market in recent months. Tiger first invested at a valuation $300 million, according to insider sources. The e-cigarette might be less addictive than conventional cigarettes, but with the backing of a solid investor like Tiger, they are sure to go places.
Get more stuff like this
Subscribe to our mailing list and get Latest updates
Thank you for subscribing.
Something went wrong.
