Not only did mattress startup, Casper, reach an impressive $550 million valuation in just a couple of years, but it began with an objective quite different from most of Silicon Valley’s famous tech unicorns. The startup aimed to penetrate an already saturated, niche market for mattresses. Luke Sherwin, Chief Creative Officer and co-founder of the mattress startup had an inkling. The New York-based online mattress retailer launched in 2014, although at this time there were many online retailers in the business. The Power of a Disruptive Idea in an Old Industry Casper “disrupted” the concept of mattress retailing by offering one mattress shipped inside of a simple box. With fewer options for consumers and one perfected recipe, there was less consumer decision, resulting in minimal returns, and overwhelmingly high customer satisfaction. (To learn more, read: How Does Casper Work and Make Money?) Casper's sales page is what gave the product a competitive edge over other, more established retailers.
The “100-night trial period” or your money back is a tactic rarely used by traditional mattress companies. Further, the mattress industry disrupter directly targets millennials, via online and traditional ad campaigns, aggressive social media, and ads on city taxis and subways. Customers were on board with the “100-night trail” promise, funneling in a whopping $1 million just 28 days after the startup’s launch in April of 2014. Currently, Casper holds its place as one of today’s fastest growing consumer brands. In less than two years, Casper generated $70 million in venture capital from investors such as Ashton Kutcher and Leonardo DiCaprio. Casper’s latest Series B financing round attracted $55 million in investment, with a pre-investment valuation of $500 million, according to a TechCrunch report. The latest round beefed Casper up to a post-money valuation of $555 million. Casper has grown into over a half a billion dollar company using unique sales pitches and strategies directly targeted at younger generations via social media and city transportation advertising.
As Casper expands into other product categories, it hopes to be a one-stop shop for customers, with faith in the one-size fits all recipe behind the mattress startup’s success. Want to learn how to invest? Get a free 10 week email series that will teach you how to start investing. Delivered twice a week, straight to your inbox. No thanks, I prefer not making money.Buying my first mattress was a terrible experience. I hadn’t done any research beforehand, and I was beyond-shocked at how expensive they were. Then, there was the vast showroom of bed upon bed, with prices differing wildly and no real sense of why one was more expensive than the other, other than the industry jargon and marketing speak I was being fed. The saleswoman was pushy and followed me around the store, even though I asked her not to. I lied on nearly every mattress in the showroom (germophobia notwithstanding), but it was all a blur— they all felt soft and comfortable and I couldn’t figure out why I’d buy one over the other.
In the end I bought what I could afford, and felt like I had completely wasted my time. A decade or so later, when it was time to replace it, I bought my next mattress over the phone, after a lovely 10 minute conversation with a sales lady who asked me all the right questions, and delivered a perfect fit. It continues to be the best mattress I ever slept on, and I yearn for it when I’m traveling for business. So when the recent crop of online mattress stores started popping up, I wasn’t surprised: My experience shopping for a mattress without “trying it out” had been really positive, and online-only mattress companies were upping the benefits: With no local showrooms and limited models, they cut costs and pass along the savings. Plus there’s the cool factor: most will arrive at your doorstep rolled inside a box. Chances are, you’ve seen ads for the originator, Casper. It’s been such a success (named one of TIME’s best inventions of 2015), that it’s inspired a slew of copycats, and each has its own unique selling points.
If it’s time to buy a new mattress in your house, I promise you don’t need to flop around a showroom to choose one. Plus, they all offer free returns after enough nights to really decide if it’s for you, so the risk is pretty low. Here’s what you need to know about all the online mattress companies out there, and some tips on how to buy an online mattress. New York startup Casper was founded in 2013 and is now worth about half a billion dollars, according to Fortune. If you already know that you’re only happy on a board-hard mattress or a squishy-soft one, then Casper’s one-firmness-fits-all mattress is probably not for you. But if you’re comfortable in most hotels and guest rooms, it might suit you well. It generally feels firm with a subtle, sink-in sort of give, and isn’t springy like the type kids enjoy jumping on. Our tester noticed that when it came out of its box, it had a chemical smell (all memory foam mattresses and pillows have off-gassing), but that dissipated after a few days.
Other than that, the convenience, cost and guarantees can’t be beat. Virginia Beach-based Leesa launched in 2015. It offers a single firmness, and it also arrives rolled in a box. But you can sleep well at night knowing this: For every ten mattresses sold, this company gives one mattress to a homeless shelter. Its makeup is also slightly different than Casper, and may be slightly softer: while more than 1,000 reviewers liked it, the majority of those who didn’t said it was too soft and not cool enough. Reviewers across the board seem to feel it’s not a “luxury” mattress but very “decent.” That’s enough to give me pause, but the do-good aspect and the free returns for most might make it worth trying out. Based in New York City and founded in 2015, Helix is also shipped rolled inside a box, but it’s different from the competition because it’s made to the buyer’s specs. Creating your personalized mattress is a little bit like answering a personality quiz—it’s quick and kind of fun.
Couples can even choose a “split” or a “blended” bed: a split divides the two sides according to each user’s specs, while a blend averages out both members’ wishes. That said, completing an online survey doesn’t always mean a perfect fit— a number of reviewers weren’t happy with what they received. Almost universally, however, they say customer service and returns were a breeze. Founded in 2015 in North Carolina, by mattress industry veterans, Yogabed—another mattress in a box with a single firmness—is a fledgling company with “mattress big boys” knowhow. The company also sells Yogabed branded linens, pillows, mattress protectors and mattress covers. Reviewers say it tends to be on the softer end of firm (not soft, but not very firm), with a memory foam-like feel. Calling itself “the Warby Parker of mattress companies,” San Francisco’s Tuft & Needle was launched in 2012. Like the others, this single-firmness mattress arrives rolled in a box, but it significantly undercuts its competition pricewise.
Reviews are generally positive, while the negatives say it’s not the best for side sleepers. Some say it’s too firm; others say it softens after a few months, which firm mattress lovers dislike. All say customer service is outstanding. Saatva is the one that looks like a Princess and the Pea mattress: tufted, high and satiny. Saatva considers itself the best-priced “high-end” mattress, and it doesn’t arrive rolled in a box. It’s a spring mattress with a pillow top and an organic cotton cover, and you can choose from Soft, Luxury Firm and Firm. Its delivery fee includes in-home setup. Reviews are generally positive, comparing it to mattresses in the $3,000 range. This is the mattress we put in our High Tech Teen Room, and the reviews from my teenager are glowing. Made by Saatva, Loom & Leaf is the company’s springless, memory foam-style mattress. Loom & Leaf also uses organic cotton and plant-based foams, so it has an eco-friendly angle. It isn’t shipped rolled in a box, and reviewers say it has a springier feel than most memory foam.