What does the Birchbox sale mean for the subscription box boom?
On Tuesday, Birchbox announced it had been sold to Viking Global Investors, a hedge fund that has served as investor to the beauty box company since its 2014 Series B round. The acquisition also involves Viking injecting $15 million of fresh capital into Birchbox, who reportedly has a substantial amount of debt and was seeking a sale as a means to reinvigorate the business.
What is particular about this sale, though, is that Birchbox has been on the market since last summer, and has had serious talks with the likes of Wal-Mart and QVC — all of which have fallen through. In a statement to Recode, co-founder and CEO Katia Beauchamp seemed confident the company, which was once valued at $500 million, would be able to return to its former glory.
Still, the subscription box market is far more saturated than it was when Birchbox essentially pioneered the concept on a large scale back in 2010, and the company’s financial troubles have served to narrow the gap between Birchbox and competitors like beauty guru Michelle Phan’s Ipsy brand. [Read More]
Could a ban on plastic bags finally be coming to New York City?
New York City is one of the most progressive municipalities in the world, let alone the United States. Yet many feel, as concerns for the state of the environment grow, that the city’s continued unregulated use of plastic bags is a black mark on NYC’s green record. Now, “paper or plastic?” may no longer be an option as New York Governor Andrew Cuomo has introduced a bill that would completely outlaw plastic bag use as soon as next year.
The bill, which was appropriately announced the Monday after Earth Day, has been met with both enthusiasm and skepticism. While some believe it is a necessary step towards a more environmentally-friendly New York City, others question if the measure will be to difficult to implement on such a short notice, and wonder if a 5 cent fee per bag would be more effective.
Cuomo himself said in a statement that plastic bags have become a “blight [taking] a devastating toll on our street, our water and our natural resources.” As someone who has a tree on my block with more bags than leaves in its branches, it’s difficult to disagree.
Presently, California has a statewide ban on plastic bags. Hawaii, too, bans plastic bags in each of its counties. [Read More]
NYC tech raised more than $629M in April
In the 31 days of April, New York City companies closed nearly 70 deals to the tune of $629 million in total. Leading the charge was fuboTV with a $75 million round, Knotel with a $70 million round, and BetterCloud with a $60 million round.
As is often the case with New York City, the size, scope and type of company that receives funding varies extraordinarily. Only in New York could you have major media companies, real estate firms, and cloud computing software developers comprise top fundings.
As spring and Q2 settle in for the coming weeks, one can expect to see major deals heat up. New York City is on a continuing trend of fewer, but larger VC rounds and we can’t help but wonder who will close the major deal of the summer. [Read More]
Odds and Ends:
Gothamist is back, baby! New York City’s favorite local news site has relaunched after being suddenly taken offline and its archives purged last year.
Snapchat is having a rough day (and quarter) on the New York Stock Exchange. As stocks continue to struggle, many blame the app’s controversial redesign for its failure to bring new users. [Read More]
Check out these World of Warcraft reenactors who spent a day living and battling as though they were real life Azerothians.
