DBL Investors News
DBL Investors News
InSpa raises $5.0 million in private financing
August 15, 2006
Spa Chain Closes Finance Round Led by JPMorgan’s Bay Area Equity Fund
SEATTLE, WA. – August 15, 2006 – InSpa, the nation’s fastest-growing chain of mass-market day spas, today announced the completion of a $5.0 million private equity financing round led by the Bay Area Equity Fund I,LP, a venture capital fund managed by JPMorgan Chase & Co. The funding will be used to expand the popular Seattle-based chain of day spas into new markets, beginning in the San Francisco Bay Area, bringing affordable, convenient, high-quality spa products and services to communities across the country.
The Bay Area Equity Fund invests in companies that demonstrate strong financial performance while employing socially responsible business practices that benefit their markets, customers and communities, as well as enhancing employee morale and retention.
“With InSpa’s business model, aggressive growth strategy and a management team comprised of retail, cosmetics, salon and branding industry veterans, the company is uniquely positioned to become the premier national day spa brand for the mass market,” said Mike Dorsey, managing director at JPMorgan. “Beyond the tremendous financial opportunities presented by InSpa, our fund was attracted to the company for their deep commitment to socially-responsible business practices.”
InSpa’s unique No Tipping Policy, coupled with progressive staffing, training and management practices, creates a respectful environment where workers have a predictable income, benefits and career stability. This approach to human resource management, rarely seen in the day spa industry, also enhances the consumer experience making InSpa a relaxing place where service quality and consistency are always delivered the “InSpa” way. The innovative formula has made devotees of cost-conscious consumers and spa junkies alike.
“Our business model is simple -- deliver consistent, high-value spa services and products in efficient and friendly environments with well-trained professional staff,” said Colleen Stone founder and CEO of InSpa. “We are delighted to have a firm of Bay Area Equity Fund’s caliber share our vision of reinventing the day spa category with a commitment to creating positive social change by empowering individuals and strengthening communities. We are a high-growth company. With this funding we will continue to expand the brand, introducing InSpa to new markets.”
InSpa provides affordable, well-loved spa standards including massage, facials, waxing, manicures, and pedicures. It also sells its own line of skin and body care products, and the company’s top selling item - the InSpa Gift Card. With seven stores in and around the Seattle area, the company’s first two California locations open in fall ‘06, starting with the Santana Row store in San Jose, California in September.
About InSpa
Founded in 1999 and headquartered in Seattle, Washington, InSpa is the nation’s fastest-growing chain of mass-market day spas. InSpa emphasizes simplicity, quality and value and believes that everyone should be able to enjoy the health and emotional benefits of spa services in a welcoming environment. InSpa’s bath, body and skincare lines are available at all InSpa locations. For more information or a complete spa menu please visit us online at:www.inspa.com.
About the Bay Area Equity Fund
The Bay Area Equity Fund I, LLC, is a $75 million venture capital fund managed by JPMorgan Chase & Co. The Fund seeks to invest in companies that can deliver market-rate venture capital returns while enabling social and environmental improvement in the San Francisco Bay Area's low and moderate income neighborhoods. Investments are made in private, primarily mid-to-late stage growth companies across all industries, with a focus on the strengths of the Bay Area including: technology, healthcare, clean-tech, and consumer products and services. To learn more, please visit the website: www.bayareaequityfund.com