Everlywell
Everlywell is a company from Austin, TX, that makes a series of home lab tests with the intent of empowering people to take control of their health.
The entrepreneur was inspired to start the company when wrestling with a hormone imbalance. The goal, as was stated, is to make lab work easier for patients and more understandable with the results available online.
The company currently offers thirteen different tests including one for Vitamin D, cholesterol, and a general stress test. Patients and perform the test at home, collect the sample, mail it in and check for their results online.
Each test kit ranges in price from $68 per test to $399. Half of the tests require blood to be performed and none are yet covered by insurance. Sexually transmitted disease tests just launched and already make up 10% of current sales.
The entrepreneur claims that another two-hundred and fifty tests can be rolled out with the six current lab partners and that new lab partners are forthcoming to allow for genomic testing products.
The entrepreneur claims that in the prior six months, Everlywell has grossed $2,500,000 in sales and estimates between $5,000,000 and $5,500,000 in sales for the current year. $12,300,000 in sales is projected for the following year. The company is not yet profitable and has a burn rate of $150,000 per month.
75% of the Everlywell's customers are women.
In terms of previous fundraising, Everlywell has raised $5,000,000. The last round was raised with a convertible note at a $15,000,000 value.
This deal aired on Episode 9.12.
Making A Deal
Lori made the deal that won the day. She offered the $1,000,000 being asked for as a loan (presumably over the usual 36 month term) at 8% interest. In addition, she would also get the 5% being offered.
These types of deals are always difficult to value because what is the value of the 5% equity that is, essentially, being given away? In this case, the Stats Shark takes the percentage of the company that represents straight off the top of the company's value, in this case $1,000,000.[1] Because this equity is probably not earmarked for giving away like advisory shares, it must represent something but not as much as if the deal were made directly for it. Hence, the bite in this case is only $1,000,000 off the current value.
Updates
In the fifteenth episode of Season Eleven, viewers of Shark Tank were given an update on Everlywell. It was stated that in the two years since the original episode aired, Everlywell had booked $65,000,000 in gross retail sales and was now being sold in over 2,000 stores including Target and CVS.
In the same update, the entrepreneur behind the company decided to rebrand the company and brought Lori in for her feedback. This provided Lori the chance to brag that Everlywell was "on track" to become one of the top companies she had invested in and that its sales had pushed her portfolio past the $1,000,000,000 mark in retail sales.
Notes
- ↑ This probably isn't correct because had Lori asked for 10% equity instead, the capitalization would have been cut in half and the company wouldn't have to pay it back with interest. The Stats Shark reserves the right to re-evaluate this in the future.