- General
- July 11, 2018
- 5 minutes read
E-cigarette startup closes $650 million out of a targeted $1.25 Billion funding at a $15 Billion Valuation
image credit : Juul Labs San Francisco based Juul Labs, The company known for its vaping products which was made…
image credit : Juul Labs
San Francisco based Juul Labs, The company known for its vaping products which was made to assist adults quit smoking but gained a popularity amongst teens using its products although it clearly states of its products are for only adults from 21 years of age has now raised a huge $650 million in a financing round as part of a targeted total funding of $1.25 Billion which comes at a huge $15 Billion valuation for the company and shooting it into the likes of the top 20 most valuable private startups in the world.
This was made known in a recent SEC filing by the company although it isn’t yet currently clear which notable investors participated in this round.
According to several public reports, Major technology hedge fund Tiger Global and asset manager Fidelity are amongst Juul’s major shareholders.
Juul states of its mission to to assist smoking addicts through the provision of alternatives to traditional burning cigarettes with the use of e-cigarettes which although has some side effects does away with some of the harmful effects found in traditional Tobacco smoking.
Juul has been met by some regulatory concerns surrounding its product which although produced for adults has seen some widespread use by teenagers who purchase the products from several dealers as one has to be a verified adult to purchase the products directly from the company.
Juul which notable research firm Nielsen estimates to have a major 68% share of the e-cigarette market has seen several oppositions from health organizations and various groups which have pegged vaping as a public health crisis for young people with Juul also being recently asked to make known its marketing strategy in order to verify if or not the company targets teenagers with its advertisements.
The company last month announced a new policy concerning its social media usage with the company now only featuring former real smokers who quit the traditional method to switch to e-cigarettes as opposed to models previously used for its marketing campaigns.
Juul might be also affected by the recently proposed tariffs on Chinese products by U.S. President Donald Trump of which vaping products is listed amongst the several items targeted for a 25% tariff hike.
With Juul now continuing its operations and providing its products to its consumer base, We would have to see whether the company would succeed in its mission of assisting consumers put a stop to an unhealthy addiction or if it would experience major issues in relation to vaping being a new addiction for its users.
Another company which has raised funding recently in Juul’s related space is “Sutainable Cannabis” startup Flow Kana which raised $22 million in Series A financing earlier this month.
