Goop raises $50 million, but will have to offset an increasingly high valuation.

What happened

  • Goop, Gwyneth Paltrow’s lifestyle brand that started out in 2008 as a newsletter and now sells products, has raised a total of $75 million. It will use the money to expand its ecommerce operations and bring the company to international audiences, particularly in Europe—a large part of this growth will come from an expanded line of Goop’s private-label products.
  • The company expects to double its revenue in 2018 and says it tripled its revenue year-over-year for 2016 and 2017—2016 revenue was estimated at $15-20 million, meaning 2018 revenue should surpass $100 million.

Why it matters

  • Goop’s newest funding round increases the valuation of the company to $250 million, making it all the more necessary for the brand to expand to new markets and keep selling products. Goop began shipping to Canada in December 2017, which likely has been a boon to the company, attracting more investors and markets for expansion.
  • The premise of celebrity-driven brands is that they can market and grow for much less money because of their existing audience and publicity—but Goop, like Jessica Alba’s Honest Company, continues to move in the opposite direction, raising tens of millions of dollars. This could be because things are going well, which seems to be the case for Goop in some respects, but it still calls into question how much building a brand around a celebrity is worth and how much it really increases the efficiencies needed to scale.