Cure Hydration Announces $2.6M Raise, Store Expansion

Another hydration-based startup is on the rise, as New York-based Cure Hydration today announced a $2.6 million seed funding round led by Lerer Hippeau Ventures, as well as a nationwide retail expansion.

The round also included participation by new investors M3 Ventures and Philip Krim, CEO and co-founder of mattress brand Casper, as well as a mix of existing and first-time individual investors, including former tennis pro Andy Roddick, Thrive Market CEO Nick Green and hip-hop legend Nas.

Along with Cure, New York-based capital fund Lerer Hippeau is also an investor in snack brand Brami and kids beverage maker Brainiac, in addition to a wide range of other companies.

“Now, more than ever, consumers are prioritizing health in their daily lives and looking for products that are not only effective, but better-for-you,” said Caitlin Strandberg, Principal at Lerer Hippeau, in a press release. “Lauren is an exceptional operator and we’ve been impressed with her ability to bring a WHO-approved formulation to market without compromising on product quality or efficacy. With this cash infusion and retail expansion, we’re excited to see Cure get into even more hands.”

Launched in 2019, Cure offers a five-SKU line of hydration powder mixes based on the World Health Organization (WHO) guidelines for oral rehydration. The complete line is made with organic coconut water and pink Himalayan sea salt and contains no added sugars. The product is sold in 14-count packs (SRP $20.99) through the brand’s website and on Amazon and Shopify, and also recently launched at brick-and-mortar retailers in 8-count and 20-count boxes. One percent of all proceeds from sales is donated to ShelS, a non-profit focused on helping promote women’s sports and athletics.

According to Picasso, the new funding will be directed towards building customer awareness, new flavor development and scaling the brand’s internal team with the goal of reaching 10 full-time employees by the end of 2021. In terms of marketing, she said Cure will continue its approach of balancing paid marketing on social media with building awareness organically through word-of-mouth.

The funds will also help Cure’s forthcoming retail expansion beyond its current presence in 4,200 stores nationwide, including at CVS (2,900 locations), Walmart (1,044 locations), Urban Outfitters (48 locations) and Whole Foods (45 locations in Northern California).

Along with brands like Hydrant, OFFFIELD, and nuun, Cure is one of several newer players who have shook up the hydration powder mix category in recent years through a focus on daily recovery and use of natural ingredients. Commenting on Unilever’s acquisition of Liquid I.V. for an undisclosed fee in September, Picasso called the deal “really validating for the category from a business perspective” but also for consumers.

“From a business perspective, the margins on powder are a lot higher and it’s obviously easier to ship than a ready-to-drink. A lot of investors and strategic partners like Unilever are interested in that type of profile,” she said. “And for consumers, there’s interest because this format is a lot more environmentally friendly.”