ViscoSoft Group

Changing The Way The World Sleeps

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Company Information

Website:

https://viscosoft.com/

Sector:

Home Furnishings & Accessories

Location:

Charlotte, NC

ViscoSoft Group is changing the way the world sleeps.

With experience in textile engineering, product development, and sensor technology, this company is providing consumers with high-end bedding products. These products deliver ultimate comfort, value, and the “smartest” data-driven sleep experience ever.

Launched in 2007, ViscoSoft is a successful later-stage startup. It’s an Amazon Top 250 seller, has generated nearly $100 million in revenue over the past four years, and has partnerships with retailers including HomeGoods, Marshalls, and Burlington.

In 2020, revenue totaled $30 million as the company’s direct-to-consumer business grew more than 700%. This year, first-quarter revenue was up 45% from the previous year, and ViscoSoft captured the prestigious “Best Bedding” award from Good Housekeeping magazine.

ViscoSoft aims to give everyone a good night’s sleep, a goal that eludes nearly half the people around the world. Insomnia affects as much as 45% of the world’s population. And 41% are affected by less severe forms of sleep disruption, such as night sweats or chronic pain.

As a result of these challenges, the sleep-aid market is worth $70 billion globally, and expected to surpass $100 billion in less than five years.

Professional investors have recently jumped head-first into this market. According to research firm Crunchbase, venture capital funding of sleep-related technology and products grew from $375 million in 2017 to $488 million in 2020. And as of September 2021, this year’s figure stands at $747 million — already a new record.

This funding has turned emerging startups into valuable enterprises. Casper, for example, was one of the first “mattress-in-a-box” startups valued at more than $1 billion. And just last month, a startup called Eight Sleep, which makes mattresses with sensors that could potentially detect signs of cancer, raised $86 million from investors including Khosla Ventures, Valor Equity Partners, and Founders Fund. The round valued the company at around $500 million.

So what is ViscoSoft doing differently than others in this market? As the company says, most sleep-related companies focus on advertising better sleep, rather than actually creating it. But ViscoSoft has engineered a new path to great sleep.

Practically speaking, this company sells plush, supportive mattress toppers. These toppers offer the ability to extend the life of an aging mattress, offer comfort to those struggling with back, hip, or neck pain, and offer the convenience of having a removable cover that creates a clean, luxurious sleep surface for significantly less cost than a new mattress.

The average retail price of a smart mattress is $3,000. But ViscoSoft’s mattress toppers retail for between $159 and $169, depending on thickness. Products are sold through its own website, as well as Amazon and Walmart e-commerce platforms. Additional retail partners include HomeGoods, Marshalls, TJ Maxx, and Burlington.

In the U.S., the average order value is $157, and ViscoSoft achieves gross margins around 68%.

Notably, ViscoSoft has recently partnered with several 5-star Airbnb hosts to put its topper in highly desirable locations across America. These homes also are supplied with door-hangers that advertise ViscoSoft’s business with a message like “Bring this sleep home - check out the back to see how.”

With funds raised, ViscoSoft will continue developing a futuristic mattress topper that is integrated with sensor technology. This technology will add Artificial Intelligence to the sleep experience.

Essentially, these sensors will formulate personalized performance insights aimed at improving the quality of sleep. The toppers can be integrated with smart home devices and popular wellness apps such as Headspace and Calm.

Team Background

Gabriel Dungan - Co-Founder & CEO

Gabriel started ViscoSoft in 2007 with $54,000 in initial capital. Since then, he’s gained experience developing sales networks and implementing production teams.

Prior to starting the company, he was Head of Business Development with U10, a supplier for the home decorating industry. Before that, he worked with Darton Group, an import/export business.

He earned a Bachelor’s degree in Statistics and Finance from the University of North Carolina.

Rick Wo - Co-Founder & Chief Product Officer

Rick has more than 20 years of experience in the sourcing, manufacturing, and product development sectors. He leads ViscoSoft’s development of its physical products and works with its marketing teams to integrate customer feedback into future ideas.

He holds a Bachelor’s degree in Textile Engineering and Design from Shanghai’s Donghua University and an MBA from Southbank University in London.

Matthieu Witkowski - Co-Founder & President (ViscoSoft France)

Matthieu runs ViscoSoft’s European business, located in France. He has been with the company since its inception.

Prior to starting ViscoSoft, he was a project manager with U10, a supplier for the home decorating industry.

He earned a Bachelor’s degree in Marketing and Entrepreneurship from the University of Southern California.

Raising
$1.07 million
Committed
$23K (2%)
Current Valuation
$50 million
Min. Investment
$189
Deal Type
Title III
(For all investors)
Offering Type
Equity
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