Eaglepoint worked with partners to secure over $450M in debt and equity financing to allow Purple become a public company with a strong balance sheet. This funding coupled with the right strategic and operational advice, helped Purple achieve its rapid growth strategy.

Situation

Purple Innovation was a small mattress and pillow company with a strong intellectual property portfolio. The founders invented, patented and started production of innovative products that differed from anything else on the market.

Complication

Purple did not have the financial or managerial resources to achieve its growth objectives and was quickly running out of cash.

Resolution

In early 2017, Purple’s founders partnered with Eaglepoint partners, investment bankers and financial sponsors to fund its growth plan and to help recruit the right leaders to take the company to the Next Level. Purple Innovation became a public company in February 2018.

Results

Purple grew to over $700M in sales in four years to become one of the most successful start-ups in the history of the mattress industry. Sales revenue grew from $197M in 2017, to $286M in 2018, to $428M in 2019, to $649M in 2020 and $726M in 2021. The initial public offering stock price grew from $10/share to over $40/share by early 2021.