Raleigh air-filter maker plans for growth and contributes to fight against COVID-19
While the coronavirus pandemic continues to affect all aspects of American life, a Raleigh-based startup that sells air filters by subscription is continuing to attract investors even as it contributes to the effort to combat COVID-19.
Second Nature, which recently completed a round of funding that brought in $16.4 million from investors, is switching one of its production lines to focus on manufacturing protective masks for health workers, CEO Thad Tarkington told The News & Observer.
The move came after Tarkington heard from a hospital that had nearly run out of masks.
Tarkington said his company could make up to 800,000 masks with the filtration material it already has on hand for its air filters, which are made in the U.S. He said the company plans to donate to hospitals that are in need of protective equipment.
If it reconfigured its production line more, Tarkington estimates Second Nature could produce up to two million masks a month.
Across the nation, hospital workers are complaining of a lack of protective masks. In response, many companies, like Hanes Brands in Winston-Salem, are shifting some of their manufacturing to produce masks. Duke Health recently said it has found a way to safely sanitize N95 masks for reuse during the shortage.
Second Nature won’t permanently switch its lines to making masks, but while the coronavirus pandemic is at its worst, the company plans to give aid.
Giving them the cushion to make such an effort at the moment is that recently closed round of financing.
The funding, which they began to collect in December, is primarily being used to finance its branding transition from the name FilterEasy to Second Nature as well as an expansion of the products it will offer to customers. But it’s giving the company some breathing room as well.
Tarkington said the company wanted to change the brand because of plans to expand into offering products beyond filters. While they felt loyalty to the original name, they believed it limited the company’s potential.
“We were looking five to 15 years out,” he said. “If we wanted to go into other things around the home, we would have a brand disconnect. We figured while there was short-term pain ... it was the right move.”
Founded in 2013 by two N.C. State students, Second Nature offers a subscription service that regularly sends a new home air filter when it is time to change it. The company plans to start offering water filters as well this year, Tarkington said. The company has now raised more than $34 million, according to Crunchbase.
Second Nature was founded on the idea that most people forget to regularly change their home air filters because they are usually out of sight. Tarkington said the company has attracted a growing number of customers by making it easier for them to receive an air filter through scheduled delivery and highlighting the health benefits of cleaning your home’s air. Since 2013, it has grown from hundreds of subscribers to hundreds of thousands.
The company has also expanded into industry partnerships with HVAC companies and commercial property owners.
This latest round was led by a mix of local players, like IDEA Fund Partners and One Better Ventures, as well as some out-of-state capital, like MANN+HUMMEL’s corporate venture group.
The company now has around 150 employees, most of whom work in fulfillment and distribution. It has two warehouses for distribution, one in Wilson and another in Oklahoma. Second Nature has had to reconfigure how it operates in those spaces in an effort to prevent potential spread of COVID-19.
Tarkington said that the coronavirus has definitely affected the company’s business, but he’s also found that customer demand has been resilient.
“There’s definitely some uncertainty there, but overall we are in a fortunate position that we haven’t been overly impacted,” Tarkington said. “Like a lot of household essentials, we have seen strong demand for the product because of the nature of the product, which is cleaning the air.”
Also, he believes that their delivery model is helping them attract new customers at a time when many are hesitant to shop at brick-and-mortar retailers.
“People don’t want to go to the store right now, so that part of our model makes sense,” he said.
This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work. Learn more; go to bit.ly/newsinnovate
