SmileDirectClub, the at-home teeth straightening startup, has raised $380 million in its first institutional private placement, led by Clayton, Dubilier & Rice (CD&R) and included meaningful participation from Kleiner Perkins and Spark Capital.
With this round the company is valued at $3.2 billion. As part of the transaction, Rick Schnall, a CD&R Partner, will join SmileDirectClub’s Board of Directors. J.P. Morgan served as sole placement agent to SmileDirectClub in connection with the transaction. The funds will be used for innovation, research and development, and international expansion.
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Based in Nashville, Tennessee, SmileDirectClub is leading the charge in teledentistry and continues to disrupt the overall teeth straightening industry. Known for its work of straightening smiles across the country at an affordable price – up to 60% less than traditional methods – SmileDirectClub has seen growth since its inception in 2014.
Since 2016, SmileDirectClub has opened more than 150 retail SmileShop locations across the U.S. Utilizing a unique teledentistry platform and omni-channel distribution model, the Company executes its mission of providing access to care by providing those who need it with a straighter and more confident smile. In addition, SmileDirectClub has expanded and launched new retail partnerships with several national retailers.
“We are very excited with the outcome of our most recent fundraising round. Our mission has always been to provide an affordable and convenient option to anyone who wants to transform their smile. We are excited to continue our growth into new spaces and be given the incredible opportunity to reach even more people with our life-changing service,” said SmileDirectClub Co-founder Alex Fenkell. “We can’t wait to see what the future holds and are grateful for the support from our new investors.”
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“Our investment in SmileDirectClub fits squarely with our focus on backing and helping to build fast-growing, disruptive healthcare businesses that lower the cost of delivery while optimizing patient outcomes,” said Schnall.
Prior to this equity private placement, SmileDirectClub was largely self-funded through Camelot Venture Group, a leader in the disruptive consumer brand industry.
SmileDirectClub was founded in 2014 by Alex Fenkell and Jordan Katzman in partnership with Camelot Venture Group, whose portfolio companies include 1-800 CONTACTS and Quicken Loans, and is based in Nashville, Tennessee.
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