Boise-based developmental toymaker Lovevery announced it added $100 million in funding and revealed key metrics around its growth.
TCG led the funding round. One-time FOX executive Peter Chermin founded TCG and previously invested in companies including Pandora, Tumblr, and Barstool Sports.
The $100 million investment values Lovevery at $800 million according to the Wall Street Journal, though the company did not list this figure in the news release it sent to local media. The company did not immediately confirm the valuation figure.
Lovevery reported a number of metrics for the first time. It says it has 220,000 active subscribers, with $100 million in annual recurring revenue from subscribers. It expects $150 million in so-called run-rate revenue. Loververy says recurring revenue doubled year-over-year, up more than 100%.
The company now has 200 employees, including a base of operations in Downtown Boise. It started in a small space at local business incubator Trailhead in 2016.
Growing presence, IPO hope
As BoiseDev reported earlier this year, the company moved beyond its direct-to-consumer model by launching a line of toys at some Target stores around the country. Lovevery (pronounced love-every) launched its first toy in 2017. It expanded in recent years to a number of developmental toys aimed at a child’s growth stages from ages zero through four years old. It says the toys follow the Montessori model of early childhood learning that emphasizes independent learning by children.
The company’s co-founder told the WSJ it hopes to take the company public via an initial public offering in the next two years. If Lovevery makes it to the IPO stage, it would join recent Boise-based companies going public, including Clearwater Analytics and Albertsons Companies.
Several investors who previously chipped funding in return for this round with additional capital, including The Chan Zuckerberg Initiative from Facebook founder Mark Zuckerberg and his wife Priscilla, GV, which was formerly known as Google Ventures and Reach Capital.
“The investment led by TCG further strengthens our ability to add talent and capabilities in content, technology, and other critical functions that support the continued growth and expansion of the company,” Lovevery President and Cofounder Roderick Morris said.
Lovevery said it recently added several executives from firms including Mattel, Happy Family Organics, and Rent the Runway.