DALLAS & FORT WORTH, Texas--(BUSINESS WIRE)--Satori Capital announced today a $10 million investment in The Lovesac Company. Satori, a Dallas/Fort Worth multi-strategy investment firm committed to the principles of conscious capitalism, served as the anchor investor in the current bridge round of financing. Mistral Equity Partners, which has provided growth capital to Lovesac since 2010, also invested in this bridge round.
Lovesac is a “new economy” e-commerce furniture retailer and high-end lifestyle brand whose most popular products include modular couches (“Sactionals”) and durafoam bean bags (“Sacs”). Lovesac’s Sactionals and Sacs are flexible, durable, washable, and shippable on short notice by FedEx and UPS.
“We are delighted to partner with a company that is so beloved by its customers, so forward-thinking in its solutions, and so values-aligned with the way we conduct business,” said Satori co-founder Sunny Vanderbeck. “Lovesac is re-shaping the industry paradigm with an innovative e-commerce model, and its products are the perfect solution for new families and others seeking furniture that will adapt with their evolving needs.”
Lovesac’s CEO and founder, Shawn Nelson, is a sustainably minded visionary entrepreneur who holds numerous patents in the furniture space. He has received Ernst & Young’s “Entrepreneur of the Year Award,” and he won Richard Branson’s reality TV competition, The Rebel Billionaire. Nelson’s stated purpose for Lovesac is to “inspire mankind to buy less furniture – by investing in more of ours.”
“We are disrupting and modernizing the furniture industry by providing products that are built to last a lifetime and designed to evolve,” Nelson said. “Our system allows owners to frequently reconfigure the shape and color of their couches as their needs and environments change and to keep the washable covers looking like new, thereby eliminating the need to ever buy another couch. Along with its capital, Satori’s long-term perspective, operating expertise, and commitment to conscious capitalism will accelerate our ability to fulfill our mission.”
Lovesac is scaling via direct marketing, online exposure, and the addition of new product-demo showrooms that allow consumers to try products before they buy. The company maintains a sizable following on social media: With more than 85,000 followers on its lively Instagram feed and 350,000 Facebook fans, Lovesac’s social engagement vastly outstrips its peers, and its net promoter score is more than double that of competitive brands. It also enjoys extremely high customer loyalty; the company reports that 75 percent of its customers repeat purchases within two years.
About Satori Capital
Satori Capital is a Texas-based multi-strategy investment firm founded upon the principles of conscious capitalism. Satori’s private equity business partners with leadership teams of companies with $5 million to $25 million of EBITDA that operate with a long-term perspective, commit to their mission or purpose, and create value for all stakeholders. Companies interested in additional information should visit www.satoricapital.com.
About The Lovesac Company
Based in Stamford, Connecticut, The Lovesac Company is a designer and retailer of specialty furniture with more than 60 retail showrooms and a bustling online store. Lovesac is a “new economy” company that is disrupting and modernizing the furniture industry by providing sectional couches and durafoam bean bags that are durable, washable, reconfigurable, sustainable, and shippable by FedEx and UPS. The company’s “Designed for Life” philosophy emphasizes products that are built to last a lifetime and evolve with customer needs, providing long-term quality to the customer and reducing the amount of furniture that is discarded into landfills. Visit www.lovesac.com for more information.
About Mistral Equity Partners
Mistral Equity Partners, LP is a New York City-based private equity firm that specializes in the consumer and media sectors and is especially attracted to businesses that are supported by strong demographic trends and fundamental changes in consumer preferences. Mistral invests primarily in North American companies with enterprise values between $100 million and $300 million. Companies interested in additional information should visit www.mistralequity.com.