Casper, the not-yet-profitable internet mattress seller, started Wednesday with an SEC filing that drops its initial public offering share price to $12-13. This amends its filing from nine days ago, which offered shares at $17-19.
This new fire sale price values the company at just over $500 million, which is a nearly 50% drop from the company valuation in its last round of private funding, that valued the company as a unicorn.
Casper lost $92.1 million in 2018, and according to its filings, was on track to lose a similar figure in 2019.
Since the debacle of WeWork’s canceled public offering late last year, the markets have been skeptical of not-yet-profitable Silicon Valley startups with big dreams. One of Casper’s SEC filings points out that the global sleep market is $432 billion. Though Casper’s revenues are growing at more than 20% per year, its 2019 revenues are expected to be just 0.1% of that global sleep market, at over $400 million.
We reached out to Casper for comment on the filing and will update if we hear back.