$1bn valuation for DSC and for Harry's

[Limekiln]

Interesting to note that the NYT today listed 50 start-ups that are on their way to a valuation of $1bn. Two of them (above) are shave related, although not exactly leading with DE shaving.
Interesting nonetheless! Maybe there is a big change underway after all, and we'll see greater choice on the high street.

 

[dpm802]

can you post a link to the article?

I'd like to read more about how they arrived at this figure.
Is it $1B in annual sales? $1B in assets? $1B in total stock value?
There's more to this story than meets the eye.

And I'd like to see who else made the list. And who didn't.

 

[CBLindsay]

Important to note that neither DSC nor Harry's is actually profitable and their "valuation" represents investor assets raised more than actual sales or assets (Henry's does own a factory in Germany-wonder how that figures into the valuation) One article I read in June put DSC sales expectations for 2015 at around $168m (2 million subscribers @ $7/mo average) while the same article indicated a valuation of more than $600m (including a recently raised $75m). The article gave less info on Henry's but made it sound as if their numbers are a bit less "impressive".
The existence and expansion of DSC and Henry's appears (financially speaking) to be a result of relatively ready access to venture capital investors willing to feed the beast because sales numbers continue to multiply significantly year over year. Thier cost of client acquisition has been FAR more than simple subscriptions can ever recoup so DSC is expanding products available in the subscription (everything from hair gel to personal wipes for your bottom).

 

[Go West Young Man]

The billion dollars refers to market capitalization - the simplest example being an investor gives you $10 million venture capital and gets a 10% share of the company in trying, multiply the two numbers and the market cap of that company is $100 million.

It's more complicated than that, but not much.

 

[Sabre]

I don't see how DSC can ever be valued highly? They own a website and possibly a distribution centre if they do not use a fulfillment company. Their only assets are their stock and client list - this could be worthless as everyone may want to try it just once. They purchase their stock from Dorco so operate on small profit margins...

 

[BSAGuy]

Interesting.

 

[Feather-man]

Harry's paid $100 million for the former East German company Feintechnik GmbH. The best discount price Harry's offers in the USA on their cartridges is the same price at Amazon in Germany. To hear podcast hosts hawk their products in loving tones makes me cringe.

 

[Limekiln]

I'm not arguing that DSC or Harry's are worth the time of anyone enlightened enough to use this message board. I certainly see no value in them myself.
But the point is the chink in the armor and the attention of big money on businesses that threaten the dominance of Gillette, Schick etc.
Which may, in turn, make the business environment far more friendly for providers of real shaving tools and supplies.
Such as the ones we (enlightened ones) value.

 

[Z blade]

Not one penny has come from me.

I am so glad to say I have nothing to do with cartridge shaving anymore, and haven't for years. Now I love shaving!

 

[bobmsp]

I'm now a DE shaver, but I would not be here without Harry's starting me down this path. I think they have a good product at a relatively (i.e., compared to their cart competition) decent price. I use the razor when traveling with only carry-on and get a CCS/DFS every time.

 

[Feather-man]

I'm now a DE shaver, but I would not be here without Harry's starting me down this path. I think they have a good product at a relatively (i.e., compared to their cart competition) decent price. I use the razor when traveling with only carry-on and get a CCS/DFS every time.

I wish Harry's would sell their Croma DE blades here.

 

[dpm802]

I'm still looking for a link to the original article ... I'd like to see if Elio Motors made the list.

www.eliomotors.com

 

[UncleMush]

My brother switched from Gillette Fusion to Dorco, not through DSC but from the DorcoUSA website, and then convinced our dad to switch from Schick Xtreme3 disposables to Dorco because he gave him a spare handle. I think that when people think of the Dorco product they associate it primarily with DSC, but many will eventually quit the club and buy direct from the manufacturer. DSC seems like a poor long-term investment.

 

[BigJ]

I don't see how DSC can ever be valued highly? They own a website and possibly a distribution centre if they do not use a fulfillment company. Their only assets are their stock and client list - this could be worthless as everyone may want to try it just once. They purchase their stock from Dorco so operate on small profit margins...

Similar to Uber in the taxi business. They own no cabs and they have very few employees. Basically, investors are buying an idea IMHO.

 

[Rory1262]

I'm now a DE shaver, but I would not be here without Harry's starting me down this path. I think they have a good product at a relatively (i.e., compared to their cart competition) decent price. I use the razor when traveling with only carry-on and get a CCS/DFS every time.

The exact same for me.

 

[Feather-man]

The exact same for me.

You mean you were introduced to DE shaving by Harry's? That's my history too. Which is why I'd like to see them sell their Croma DE blades here in North America and perhaps design their own DE razors. I was a reluctant shaver even with Harry's cart. Now it's something I look forward to every day.

 

[chongo gordo]

I don't see how DSC can ever be valued highly? They own a website and possibly a distribution centre if they do not use a fulfillment company. Their only assets are their stock and client list - this could be worthless as everyone may want to try it just once. They purchase their stock from Dorco so operate on small profit margins...

Welcome to the Technology Bubble Economy.

 

[yakster]

I'm still looking for a link to the original article ... I'd like to see if Elio Motors made the list.

www.eliomotors.com

This appears to be the referenced article: http://bits.blogs.nytimes.com/2015/...at-may-be-the-next-50-start-up-unicorns/?_r=0

(http://lmgtfy.com/?q=nyt+50+start+up)

 

[Go West Young Man]

I don't see how DSC can ever be valued highly? They own a website and possibly a distribution centre if they do not use a fulfillment company. Their only assets are their stock and client list - this could be worthless as everyone may want to try it just once. They purchase their stock from Dorco so operate on small profit margins...

DSC got a $9.8million series A in 2012, a $12million series B in 2013, a $50million series C in 2014 and just closed $75million in series D funding. According to re/Code (who would know), that $75million funding translates to a market cap of $500million. They're tripling revenue every year, it's not inconceivable that their valuation doubles.

 

[Sabre]

DSC got a $9.8million series A in 2012, a $12million series B in 2013, a $50million series C in 2014 and just closed $75million in series D funding. According to re/Code (who would know), that $75million funding translates to a market cap of $500million. They're tripling revenue every year, it's not inconceivable that their valuation doubles.

They could be the next Lycos