Unilever's US$1 billion purchase of Dollar Shave Club, a four-year-old start-up
company that sells razors and other personal products for men
online, has netted a substantial return for the investors in a
Guernsey-domiciled investment fund.
Capital, a transatlantic venture capital group, was an original
seed investor in Dollar Shave Club back in late 2011 through
Science, the venture capital incubation platform.
The Unilever deal should result in the distribution of close to
US$60 million to Science and its shareholders, including the White
Star Capital fund, and a direct return on investment of 11 times
the capital invested by the Guernsey fund during a period of just
over two years.
Eric Martineau-Fortin, co-founder and Managing Partner of White
Star Capital, said the success of Dollar Shave Club was a great
"As a participant in the initial financing rounds of
Science and this US start-up that emerged from it in 2011, we are
proud to have believed in the Dollar Shave Club e-commerce model
and its founder, Michael Dubin," said Mr Martineau-Fortin.
"Our financial support for this type of accelerator
structure, our operational expertise and our in-depth knowledge of
Canadian and European markets all contributed to this phenomenal
success in its seed phase."
Dollar Shave Club upended the razor industry's traditional
business model by offering a subscription service that sells blades
for as little as US$3 a month (including shipping and handling).
The day Dollar Shave Club started selling subscriptions in March
2012, the company released a quirky YouTube video starring founder
Michael Dubin. Within six hours of the initial launch all blades
had sold out, while the YouTube video has gone on to be viewed more
than 23 million times.
The White Star Capital fund is primarily backed by sovereign and
institutional funds supported by entrepreneurs and family offices
from more than 20 countries. The fund's other investments
include companies such as food tech Freshly or
robotic locksmith KeyMe in New York, IoT predictive analytics
firm mnubo in
Montreal and financial exchange Cryex in Stockholm.
Observing a recent discussion between the children of a successful entrepreneur, I was reminded once again of the potential impact of family members being provided with differing information about the family enterprise.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).