Jessica Alba's Startup Raises $70 Million as It Prepares to Go Public This latest round of funding values The Honest Company, a maker of eco-friendly family and baby products, at close to $1 billion.

By Laura Entis

Opinions expressed by Entrepreneur contributors are their own.

Celebrities are flooding to hop on the entrepreneurial bandwagon. From Jared Leto to Justin Bieber to Leonardo DiCaprio, it seems like every A-lister is repping a new venture.

While a celebrity co-founder/investor can bring notoriety and publicity to a new company, often the dazzle quickly fizzles away. But Jessica Alba's startup, The Honest Company, which the actress cofounded with Christopher Gavigan, Sean Kane and Brian Lee in 2012, has steadily continued to grow and raise funding long after the initial bout of celebrity-fueled hype.

Case in point: The company, which makes and sells eco-friendly nontoxic baby and family products, has raised $70 million from Wellington Management Company and all existing venture investors, a group that includes ICONIQ Capital, General Catalyst Partners, and Institutional Venture Partners. This latest financing ads to the $52 million, including a $25 million funding round in November, that The Honest Company has raised since its launch and values the company at just under $1 billion, according to The Wall Street Journal.

Related: Jessica Alba's Startup Nabs $25 Million in Funding

The money will be used to expand Honest Company's product line as well as its international reach; there have already been partnership talks to expand into China, the Journal reported. "We believe being a public company is the best path for us going forward and it's good to get that validation early on," said Lee, Honest's chief executive. "I can't say when that will be, but we are definitely starting to think and act like a public company."

Annual revenue is on target to surpass $150 million, Lee told the outlet, with approximately 80 percent of that coming from customers who sign up for the company's recurring monthly subscription service. While Honest Company products are sold at a range of outlets, including Whole Foods, Costco and more recently, Target and Nordstrom, offline purchases only account for 20 percent of items sold.

Related: Jared Leto Is the Latest Celeb to Hop on the Entrepreneurial Bandwagon

Laura Entis is a reporter for Fortune.com's Venture section.

Editor's Pick

Related Topics

Business News

People Are Eager to Go to Europe. But a 'Strange and Humiliating' Requirement Is Derailing Travel Plans.

There aren't enough resources to keep up with the demand — and it's causing major problems.

Business News

8 People Hospitalized on JetBlue Flight Headed to Florida Due to Turbulence

The turbulent conditions occurred near Jamaica on a flight coming from Ecuador.

Business News

Costco Is Now Offering an Additional Exclusive Perk to Members in All 50 States

Members can now access discounted outpatient medical care through a partnership with healthcare startup Sesame.

Leadership

Empathy is the Ultimate Customer Service Secret. Here are 3 Empathy Essentials You Need in Your Competitive Arsenal

Empathy can be learned, and these three empathy essentials are a great place to start.

Business News

This Founder Walked-On to a Top College Basketball Team in the '90s. Today, He and Drew Brees Are Bringing the 'Walk-On Mentality' to Franchising.

Brandon Landry was so determined to play college basketball that he walked-on — tried out with no scholarship and made the team — at a major program. He's brought that same determination to the franchise business with Walk-On's Sports Bistreaux.

Career

You Don't Need a College Degree for These 10 In-Demand Jobs That Can Pay More Than 6 Figures

Americans are rethinking the traditional college route as major companies like Apple and IBM drop degree requirements.