Beam, the Boston-based CBD wellness brand founded by former athletes Matt Lombardi and Kevin Moran, has completed a $5 million series A funding round led by C2 Ventures.
The investment, which brings its total investment to $12 million, will be used for operations, infrastructure, marketing efforts and to expand Elevate, a hydration vertical for the company that launches on Feb. 9.
Lombardi, a former hockey player, and Moran, a former baseball player, launched the direct-to-consumer company in 2018 with topicals to be applied for pain relief. Today, Beam offers powders, oils and capsules to help with sleep, recovery and balance, and the hydration products are their first CBD-free products for $35 and a 30-serving pack for $59.
C2 Ventures has been an investor of Beam since the company’s seed round in 2019 that was led by Obvious Ventures. New investors Litani Ventures, Carter Comstock and The Yard Ventures join a number of existing investors that includes athletes Danica Patrick, Kevin Hayes, Brooks Laich and Baker Mayfield’s family’s private equity firm Camwood Capital.
“We couldn’t find anything in the space that worked,” said Moran. “We started talking to other athletes who didn’t know what to use to recover.”
The cofounders looked to CBD to help with chronic issues from injuries. The products follow four pillars — balance, performance, sleep and recovery — that help athletes when training and competing, but also the every day person that is stressed. The Dream Powder, available for $76 for a monthly subscription or $95 for a onetime purchase, is one of their best sellers, as well as The One CBD oil for $120 for a monthly subscription, and the Focus, Dream and Revive capsules each available for monthly subscriptions from $68 to $76.
“The world changed and it’s very stressful,” said Lombardi. “People aren’t sleeping well and CBD helps you get back to balance. We’re fortunate to help people having trouble with sleep and anxiety.”
Lombardi said Beam has experienced steady growth since its launch. The company achieved 230 percent annual revenue growth in 2020 and a 120 percent holiday performance.
“It’s tough to say what would drive our growth, but looking back we were just really fortunate there was a lot of growth for the entire year,” Lombardi said. “Right now we’re still in direct-to-consumer. We love to be able to control what we control. Hydration opens distribution for us, which is interesting. As we continue to grow, we’ll have our eyes set on retail.”