Beachmint, a celebrity-endorsed e-commerce startup in Los Angeles, is toast.
According to PandoDaily’s Michael Carney, both BeachMint’s CEO and President have been ousted by the board. Investors, which include NEA, Goldman Sachs and Accel Partners, will receive $20 million of the $73.5 million Beachmint has raised since its founding less than three years ago.
The news comes after Josh Berman and Diego Berdakin, the company’s cofounders (CEO and President respectively) spent significant time trying to raise a new round of financing. Carney says the pair were making frequent trips abroad trying to round up “dumb money” to save their struggling business. Competitors ShoeDazzle and JustFab have emerged as category leaders although it isn’t clear those businesses are sustainable either. Carney says only two of Beachmint’s brands, JewelMint and ShoeMint, ever showed significant traction signs and they weren’t enough to keep BeachMint afloat.
Last year, BeachMint was in talks to merge with ShoeDazzle but the discussions fell apart.
Beachmint isn’t the first over-hyped and over-funded startup to fall. Recently Viddy, another NEA-backed company, raised at a $350 million valuation. It was a fast-growing video sharing app that emerged on the heels of Instagram’s ~$700 million exit. In May, Viddy returned $18 million to investors following an overhaul of its management team.
Beachmint’s Diego Berdakin has not returned a request for comment.
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