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Casper CEO after $170 million funding round: 'We are set up to do well in the public markets'

Key Points
  • Founded in 2013, Casper sells mattresses and sleep accessories directly to consumers.
  • Kevin Spacey, 50 Cent, Carmelo Anthony and Kyrie Irving joined Target in Casper's latest investment round.
  • That brings the company's total funding to $240 million.
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Casper CEO: We now offer 'white glove' mattress delivery

Kevin Spacey, 50 Cent, Carmelo Anthony, Kyrie Irving and Target are backing Casper, helping the sleep start-up close a $170 million Series C investment round.

Founded in 2013, Casper sells mattresses and other sleep products directly to consumers and at stores and offers shoppers an extended 100-day return policy.

"We think we're the next great consumer brand," CEO Philip Krim told CNBC's "Squawk Box " on Tuesday.

"Since the beginning, we've always thought about offering products both online and offline, focusing on digital first," Krim said. Casper also sells products at Target and home-furnishing companies like West Elm.

These have been the "key ingredients" that have helped Casper accelerate its business so quickly, Krim said.

Casper said its total funding is now $240 million.

Krim doesn't rule out an initial public offering, either.

"We think we are set up to do well in the public markets," he said when asked about a possible IPO. "We think we can continue to accelerate what we're doing, and that will give us the position to be public when we like."

Tony Florence, a general partner at New Enterprise Associates and an early investor in Casper, told CNBC he put additional money into the start-up because it is only 4 years old and is set up for capturing a significant market share.

"[Casper is] still in the early days of innovation," said Florence, whose investments include Jet.com, which was bought by Wal-Mart, and Quidsi, which was acquired by Amazon in 2011. "It's a massive market."

"Getting the word out and building awareness is the biggest barrier" today, Krim said. Investments by celebrities such as Spacey and Anthony have helped, he added.