Tuft and Needle
I read the news that Tuft and Needle had agreed to merge with Serta Simmons Bedding. The terms of the deal were not disclosed but Tuft and Needle did $170M in revenue last year so it is not a big leap of faith to believe that they got something in the $800m and up range for their business.
What is so amazing about this is that the founders never brought in venture capital money and run a profitable business. What does that say about all the capital being poured into businesses that spend to grow? Tuft and Needle is 6 years old so think about that.
I have invested in countless founders who are undercapitalized yet they are succeeding by being scrappy and getting to profitability quickly. Acquiring eyeballs (aka marketing) costs money but there are plenty of things you can do with little cash. Obviously, Tuft and Needle figured that out.
Certainly, this is not for the VC books but I love these kinds of investments. They did not raise a dime but the companies that have proved the model, built a brand and just need some cash to get them to the next step are solid for an angel. It also confirms that you can still build a big business without VC capital and personally that makes me extremely happy because it pushes everyone to rethink their business.