×

Gwyneth Paltrow’s Goop Banks $50 Million for European Expansion

Actress-entrepreneur Gwyneth Paltrow has raised $50 million in VC money for Goop, the lifestyle media and ecommerce company she founded — and has set her sights on Europe for its next stage of growth.

The Series C round included participation form new and existing investors, including NEA, Fidelity Management and Research Co., Lightspeed Venture Partners and Felix Capital. It brings Santa Monica, Calif.-based Goop’s total outside investment to $82 million. The 150-employee company reportedly has a post-money valuation of $250 million.

Goop launched Canadian shipping in December 2017, and expects to branch into Europe by the fourth quarter of 2018. In addition, Goop plans to invest heavily in international markets through experiential retail, “image events” and marketing efforts.

According to the company, which Paltrow founded in 2008 as a newsletter, Goop already has a strong international audience, with 35% of its current readership outside the U.S.

Goop isn’t profitable, but under Paltrow’s leadership as CEO it is on track to more than double revenue in 2018 (the company is not disclosing figures). Last year, Goop inked a deal with Condé Nast to co-produce a quarterly print mag that carries a cover price of $14.99.

From its origins as a weekly newsletter featuring tastemakers providing tips and news on different topics, Goop’s business includes a “contextual commerce” platform that lets readers buy featured products in categories spanning fashion, beauty, travel, and wellness. In 2016, the company launched  line of Goop-branded products including apparel, athletic wear, skincare, vitamins, fragrance and bath soaks. Goop says it plans to expand into the home category in the next few years.

Goop has garnered controversy over health claims and safety for some of the products it sells (not to mention derision over certain absurd and pricey items). For example, watchdog group Truth in Advertising said it found more than 50 instances of false or deceptive claims in Goop’s catalog, according to a complaint it sent last summer to California regulators.

Last year Goop pointed readers to Body Vibes, wearable stickers ($60 for a 10-pack) that allegedly “rebalance the energy frequency in our bodies” and “promote healing” using “the same conductive carbon material NASA uses to line spacesuits so they can monitor an astronaut’s vitals during wear.” In response, NASA said it doesn’t use any such material in its spacesuits, and a former NASA scientist called the claims of the Body Vibes stickers “a load of BS.” And in January 2017, gynecologist Dr. Jen Gunter wrote in a blog post that the use of Goop’s $66 “vaginal jade eggs” could lead to infections or toxic shock syndrome; Goop responded that there is no evidence linking the products to toxic shock syndrome and said, “we are drawn to physicians who are interested in both Western and Eastern modalities and incorporate the best from both.”

Popular on Variety

More Digital

  • Neilsons Measurment Problems TV Digital

    AT&T's Ad-Tech Unit Xandr Buys Clypd To Help Place TV Commercials More Precisely

    Xandr, the AT&T ad-technology unit, has purchased a new company that helps advertisers use data to place commercials in front of the audiences most likely to want to watch them The AT&T division said Friday it had acquired clypd, a company that helps advertisers move forward in a growing desire by Madison Avenue to run [...]

  • AT&T Logo Building

    AT&T TV Now Price Hike Coming Next Month, Base Package to Cost $65

    AT&T is instituting a substantial price hike for its live TV streaming service AT&T TV Now: Customers who have subscribed to the service’s basic “Plus” package will see their bill go up by $15, to a total of $65 per month, starting next month. The telco has started to inform existing subscribers about the price [...]

  • Disney-Family-Movies

    Disney Family Movies SVOD Service Is Shutting Down Ahead of Disney Plus Debut

    After 11 years, Disney is pulling the plug on Disney Family Movies On Demand — with the service’s shutdown coming just days before the launch of the Mouse House’s Disney Plus. Disney Family Movies, which cost between $5-$10 per month, has been available via pay-TV providers in the U.S., including Comcast Xfinity, Charter Communications, Verizon [...]

  • Amazon Orders ‘All or Nothing: Tottenham

    Amazon Orders ‘All or Nothing: Tottenham Hotspur’ Soccer Doc Series

    Amazon has greenlit a new “All or Nothing” sports documentary series, this time following London-based soccer team Tottenham Hotspur. “All or Nothing: Tottenham Hotspur” will follow a year in the life of the team, charting the ongoing 2019-20 season. The squad made it to the final of the European Champions League last year, losing to [...]

  • Jeffrey Katzenberg

    Jeffrey Katzenberg's Quibi Picks T-Mobile as Wireless Launch Partner

    Quibi, the short-form mobile TV service founded by Jeffrey Katzenberg, announced a pact with T-Mobile to be the official telecommunications partner for its April 2020 launch. T-Mobile will be the exclusive wireless distributor when Quibi launches next spring. However, the arrangement doesn’t mean only T-Mobile customers will be able to subscribe to Quibi: Anyone will [...]

  • Steve Kornacki

    Steve Kornacki, Chris Matthews Stand at Center of New NBC News Podcasts

    After vowing to press ahead more directly into the world of podcasts, NBC News is readying the launch of three additional audio shows centered around politics. “Article II: Inside Impeachment” will help listeners understand the impeachment process. The program, new episodes of which are slated to debut Mondays, Wednesdays and Fridays as people head for [...]

More From Our Brands

Access exclusive content