Dylan Jacob has found a partner to invest in BruMate.
The 25-year-old entrepreneur had been searching for the right investor to help continue to scale his Denver-based insulated drinkware business for the past seven months and landed on San Francisco Equity Partners, which paid $20 million to close the deal.
“We didn’t need the financial aspect,” Jacob said. “We just wanted to bring on a partner that we believe could get in line with our vision and act as guidance for me as I’m steering the ship because I don’t have business partners. The company is getting to a level that I felt it was important to have other eyes on the business.”
San Francisco Equity Partners announced the investment deal on Tuesday, and its members now sit on BruMate’s founding board.
“They wanted to have a certain percentage of ownership, so that translated into the $20 million investment amount — $3 million of that went into the company and the rest bought out my shares,” Jacob said.
Jacob had looked up to Moiz Ali, the founder of direct-to-consumer deodorant brand Native, who is also an operating partner with San Francisco Equity Partners, before he had received a bid from the private equity firm. He said he felt they understood the grit of an up-and-coming business like BruMate.
“I had a lot of conversations with older more established firms, and they just didn’t quite get it in the same way that I felt SFEP did,” Jacob said. “When you’re taking on equity you’re basically getting married, and I felt like this was a good relationship.”
Jacob founded BruMate in 2016 and has taken no outside investments up until now. BruMate is on track to surpass $100 million in sales in 2020 and was the top Colorado company on the Inc. 5000 list of fastest-growing private companies released last month.
The company, which sells insulated koozies for beer cans and wine, plans to move into its new 5,000-square-foot office at 2535 Larimer St. in RiNo in two weeks.