Actress Jessica Alba is taking the world by surprise with a new $1 billion dollar valuation for her company. She becomes one of Forbes most richest self made women, by starting a consumer goods company , called The Honest Company. The Honest Company is over two years old and has raised a whooping $52 million dollars within its beginning start up. Alba’s net worth is now $200 million dollars
So what does the company provide for consumers? Diapers! That’s right Alba is becoming extremely wealthy from investing in diapers, convertible cribs, and other natural and eco-friendly baby products. Honest company also sells, natural cleaning products, prenatal care vitamins, multivitamins, and supplements as well. In July 2015, the company will launch a new feminine line that will provide tampons for women.
A story of how Alba’s skin is very sensitive to certain household and commercialized products was shared in Forbes.com. Her red welts and hive breakout from a mainstream baby detergent brand reminded her of a difficult childhood spent in and out of emergency rooms. Her childhood experiences of illness and pregnancy complications from certain household products led her to embark on the Honest Co.
The company is looking to expand to countries like China, England, and Australia , with the aim of becoming IPO.
“We believe being a public company is the best path for us going forward, and it’s good to get that validation early on,” Brian Lee, the co founder of Honest Company said.
Alba who is a mom of two admitted that she went against the grain of advisors telling her not to invest in this type of business.
“People thought I was nuts”, said Alba. The actress says people’s reactions ranged from ” Can you just do a perfume or something?’ to ” Baby diapers, really?”
Alba said on Late Night with Jimmy Fallon, “I wanted clean, safe, effective products that were affordable and beautifully designed and I couldn’t find that in the marketplace”,
Alba’s investors to her company include Wellington Management Company, Institutional Venture Partners, Iconiq Capital, Lightspeed Venture Partners, and General Catalyst Partners and a host of financial institutions.
As far as when will the Honest Company launch as a public company, Lee stated, ” I can’t say when that will be, but we are definitely starting to think and act like a public company.”