Aura Health (previously Aura)

Aura Health (previously Aura)

Growth Stage

Your All-In-One App for Mental Wellness & Sleep

Your All-In-One App for Mental Wellness & Sleep

Overview

Raised to Date: Raised: $900,477

Total Commitments ($USD)

Platform

Dealmaker Securities

Start Date

03/11/2024

Close Date

04/28/2024

Min. Goal
$25,000
Max. Goal
$2,000,000
Min. Investment

$1,001

Security Type

Equity - Preferred

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$1.15

Pre-Money Valuation

$60,000,000

Rolling Commitments ($USD)

Status

Active

Reporting Date

04/15/2024

Days Remaining

13

% of Min. Goal

3,602%

% of Max. Goal

45%

Likelihood of Max
unlikely
Avg. Daily Raise

$25,728

# of Investors

402

Momentum
warm.svg
Create a free account today to gain access to KingsCrowd analytics.
Year Founded

2015

Industry

Healthcare & Pharmaceuticals

Tech Sector

HealthTech

Distribution Model

B2C

Margin

High

Capital Intensity

Low

Location

San Francisco, California

Business Type

High Growth

Aura Health, with a valuation of $60 million, is raising funds on Dealmaker Securities. It is a mental wellness marketplace providing content, coaching, and community for mental health services. Aura Health’s marketplace enables mental health coaches and therapists to shift digital and individuals to access personalized mental wellness content, coaching, and community services. The platform has over 8 million users and has generated $25 million in lifetime revenue. Steve Lee and Daniel Lee founded Aura Health in December 2015. The current crowdfunding campaign has a minimum target of $25,000 and a maximum target of $2 million. The campaign proceeds will be used for marketing and product development.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$6,925,838

$4,837,485

COGS

$2,352,887

$1,651,201

Tax

$0

$0

 

 

Net Income

$-1,588,827

$-3,036,566

Summary Balance Sheet

FY 2022 FY 2021

Cash

$744,071

$420,340

Accounts Receivable

$154,302

$51,415

Total Assets

$1,515,257

$1,159,577

Short-Term Debt

$4,660,336

$3,502,510

Long-Term Debt

$6,468

$6,468

Total Liabilities

$4,666,804

$3,508,978

Financials as of: 03/11/2024
Create a free account today to gain access to KingsCrowd analytics.

Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Aura Health (previously Aura) 04/28/2024 Dealmaker Securities $60,000,000 $900,477 Equity - Preferred Active RegCF
Aura Health (previously Aura) 04/29/2023 Dealmaker Securities $60,000,000 $2,959,827 Equity - Preferred Funded RegCF
Aura 12/07/2022 Republic $55,000,000 $483,652 SAFE Funded RegCF
Create a free account today to gain access to KingsCrowd analytics.

Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Valuation History

Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Employee History

Upgrade to gain access

Pay Monthly
Annually (Save 17%)

Edge

$25 /month
billed annually
Free portfolio tracking, data-driven ratings, AI analysis and reports
Plan Includes:
Everything in Free, plus
Company specific KingsCrowd ratings and analyst reports
Deal explorer and side-by-side comparison
Startup exit and failure tracking
Startup market filters and historical industry data
Advanced company search ( with ratings)
Get Edge Annual
Already a member? Log in here.

Ratings KingsCrowd Startup Rating Methodology Article

Blurred Ratings Bars Blurred Ratings Bars

Analyst Report

Synopsis

Aura Health, previously known as Aura, is at the forefront of addressing the growing demand for accessible mental health services through its innovative digital platform. The company has successfully harnessed the power of technology to create a mental wellness marketplace that provides content, coaching, and community for those seeking mental health services. This holistic approach to mental wellness distinguishes Aura Health from traditional mental health apps by offering a more comprehensive solution.

With over 8 million users and generating $25 million in lifetime revenue, Aura Health's platform stands out as an emerging leader in the digital mental wellness space. The platform facilitates a seamless transition for mental health coaches and therapists to digital formats, expanding their reach and accessibility. Users benefit from personalized mental wellness content, coaching, and community services, all tailored to meet their needs. This personalized approach is crucial in the mental health field, where one-size-fits-all solutions often fall short of addressing the complex and varied nature of mental wellness issues.

As the mental wellness sector continues to evolve, Aura Health's comprehensive platform positions it well to meet the increasing demand for accessible, effective mental health services. The company's success and strategic growth plans make it a noteworthy player in mental health apps.

Next Section: Price

Price

With a pre-money valuation of $60 million, Aura Health is positioned aggressively in the mental wellness marketplace. This valuation is set against a backdrop of $25 million in lifetime revenue and a user base of 8 million, which showcases significant traction in a competitive health tech industry. The revenue-to-valuation multiple of 8.6 suggests that the $60 million valuation is appropriate and reflects the company's strong growth potential in the burgeoning mental health app market, which is projected to expand significantly by 2024.

The company's growth metrics are compelling, with $6,925,838 in annual revenue for the most recent fiscal year and a remarkable annual revenue growth rate of 43.17%. This growth is indicative of Aura Health's ability to scale and capture market share in a very crowded sector. 

For investors targeting a 10X return, Aura Health's exit potential hinges on its ability to maintain high growth rates, expand its user base, and potentially introduce new revenue streams. The involvement of notable VC investors like Cowboy Ventures and Reach Capital, alongside support from accelerator programs like Berkeley Skydeck, adds credibility to Aura Health's growth strategy and execution capabilities.

In summary, Aura Health's current valuation marks a good deal for investors in this round. Its strong performance metrics, strategic positioning in a high-growth market, and backing by reputable investors suggest a viable path to significant returns for investors. 

Next Section: Market

Market

The mental health apps market is experiencing a significant growth phase, punctuated by an increasing global awareness of mental health issues and the critical need for accessible healthcare solutions. Aura Health leverages this trend by offering a mental wellness marketplace that provides content, coaching, and community for mental health services. The company's platform addresses key market drivers such as the growing demand for convenience and accessibility in mental health solutions, enabling users to access support and resources anytime, anywhere.

With a reported 8 million users and $25 million in lifetime revenue, Aura Health has demonstrated substantial market acceptance and potential within the mental health apps domain, valued at approximately $2.18 billion domestically in 2024, according to Grand View Research. The market is projected to grow at an annual growth rate of 13.2%, indicating an expanding sector. While the market is growing at a strong rate, $2.1 billion is relatively small in terms of total addressable market size, and the market is quite crowded, making the market potential an important consideration for potential investment.

Next Section: Team

Team

Aura Health, co-founded by Steve Lee and Daniel Lee, provides a comprehensive platform for content, coaching, and community services in the mental health domain. Both founders have been with the company for over seven years, showcasing a deep understanding and commitment to mental wellness. Their leadership has successfully navigated Aura Health through its early stages to a platform that now boasts over 8 million users and has generated $25 million in lifetime revenue.

As CEO, Steve Lee previously founded Wayfarer Technologies, a mobile tech company that appears to have dissolved. Before that, he worked in multiple product roles. He holds a UC Berkeley-UCSF joint master’s degree in bioengineering and entrepreneurship. While he does not have much prior industry experience, his educational background is very relevant to the company and should provide him with a strong network. His brother Daniel, the co-founder and Chief Product Officer, founded Wayfarer Technologies. Aside from this, he has very little other experience. Despite the lack of prior industry experience, the team is validated by the traction thus far and by the backing of notable venture capital investors such as Cowboy Ventures and Reach Capital.

Despite declining headcount since the last round, Aura Health's core team of six members remains dedicated and focused on expanding its offerings and reach within the mental health apps market. This lean but efficient team structure has allowed Aura Health to maintain agility while meeting its strategic objectives.

Next Section: Differentiation

Differentiation

Aura Health attempts to set itself apart in the crowded mental wellness app market through its comprehensive marketplace approach, which combines content, coaching, and community into a single platform. Unlike direct competitors such as Calm and Headspace, which primarily focus on meditation and mindfulness content, Aura Health expands its offerings to include personalized mental wellness services facilitated by a wide range of mental health professionals. This holistic approach caters to a broader spectrum of mental health needs and provides a more personalized user experience.

Furthermore, Aura Health's significant user base 8 million and $25 million in lifetime revenue demonstrate strong market traction and user acceptance. Launching the platform in six languages reflects a strategic move to tap into the global mental health market, potentially increasing its user base and revenue streams. This global approach could differentiate Aura Health from its competitors, many of which have a more localized or English-centric focus.

While indirect competitors like YouTube offer free access to a vast array of mental wellness content, Aura Health’s curated and personalized approach ensures users access to quality, targeted content and services. This curated experience, combined with the community and professional coaching elements, provides a value proposition that free platforms cannot match.

Despite the highly competitive landscape, Aura Health's comprehensive marketplace, focus on personalization, and global expansion efforts position it as a unique player in the mental wellness space. However, the challenge remains to continuously innovate and enhance user engagement in a market where users have numerous options for mental wellness support.

Next Section: Performance

Performance

Aura Health, a prominent player in the mental wellness marketplace, demonstrates significant traction in an extremely competitive industry. Since its inception, Aura Health has amassed an impressive user base of over 8 million. This growth is bolstered by its $25 million in lifetime revenue, showcasing the platform's ability to monetize its offerings effectively. The company's decision to launch its services in six languages reflects a strategic move to tap into the global market, further expanding its reach and potential user base.

The company's annual revenue for the most recent fiscal year stood at $6.93 million, marking a substantial 43.17% growth. This growth rate indicates Aura Health's strong market presence and ability to attract and retain paying customers. Despite being in the pre-profit phase, the company's ability to generate significant revenue highlights its potential for profitability. Aura Health's business model, focusing on recurring revenue, positions it well for sustainable growth. While substantial, the monthly burn rate of $132,402 is not uncommon for a high-growth company, especially one investing in marketing and product development to fuel further growth.

Aura Health has established partnerships with major names such as Google, Fitbit, Oura, Life360, UCSB, and the American Cancer Society. These partnerships not only lend credibility to Aura Health but also provide strategic avenues for user acquisition and expansion. The company's ability to secure such partnerships speaks volumes about its value proposition and the quality of its platform.

However, it's important to note that the employee headcount has declined since their last round in 2023. This could raise questions about the company's internal dynamics and its ability to execute its growth strategy in the long term. Despite this, Aura Health's product development and user and revenue growth progress suggest a strong underlying product-market fit and operational execution.

In conclusion, Aura Health's performance metrics, strategic partnerships, and market positioning reflect the company's strong growth trajectory. While challenges remain, particularly in reaching profitability and navigating team dynamics, the company's achievements suggest it is well-equipped to tackle these challenges and continue its growth in the burgeoning mental health app market.

Next Section: Risk

Risk

Aura Health operates in an extremely competitive market, facing direct competition from well-established companies such as Calm and Headspace, which have significant brand recognition and user bases. Additionally, free alternatives for mental wellness content, such as YouTube, pose a challenge to Aura Health's paid subscription model. This competitive landscape may impact Aura Health's ability to attract and retain users, potentially affecting its revenue growth and market share.

While Aura Health has shown impressive user growth and lifetime revenue, it is still in a pre-profit phase, with a significant net loss reported in the most recent fiscal year. The company's profitability is uncertain and will likely depend on its ability to significantly increase revenue while managing expenses. This scenario places financial strain on the company and may necessitate additional rounds of funding, which could dilute existing shareholders.

Aura Health's short-term debt is notably high compared to its cash reserves, indicating potential liquidity risks. Without sufficient cash flow to cover its immediate liabilities, Aura Health may face challenges in meeting its financial obligations without securing additional capital or restructuring its debt, which could further impact its financial stability and operational capabilities.

While Aura Health's marketplace model benefits from high scalability and low capital intensity, the lack of proprietary technology or patents may make it vulnerable to competition. The company's success relies heavily on its ability to differentiate itself through the quality of its content, the effectiveness of its platform, and the strength of its user community. However, without strong intellectual property protections, competitors could replicate Aura Health's business model or key features, intensifying the competitive pressure.

Next Section: Bullish Outlook

Bullish Outlook

Aura Health stands out in the burgeoning mental wellness space with its comprehensive marketplace that connects users with personalized mental health services, including content, coaching, and community support. This innovative platform has already attracted over 8 million users, demonstrating its appeal and the high demand for such services. The company's ability to generate $25 million in lifetime revenue further underscores its successful monetization strategy and the scalability of its business model.

The digital transformation of healthcare, accelerated by the COVID-19 pandemic, has significantly increased the acceptance and demand for mental health apps. Aura Health's impressive annual revenue growth of 43.17% reflects the company's strong position in this rapidly expanding market. With revenue of $6,925,838 for the most recent fiscal year, Aura Health is on a clear path to profitability despite the competitive landscape. The company's strategic focus on a recurring revenue model promises a steady income stream and long-term customer engagement.

Backing from notable venture capital firms such as Cowboy Ventures and Reach Capital lends Aura Health additional credibility and access to invaluable resources for scaling its operations. These partnerships validate Aura Health's market potential and provide the strategic guidance and financial support necessary for sustained growth.

In conclusion, Aura Health's innovative marketplace, significant user base, and robust growth trajectory position it as a strong player in the mental wellness sector. The company's strategic partnerships, strong financial performance, and aggressive expansion plans make it an attractive proposition for users and investors. As the demand for mental health services continues to rise, Aura Health is well-equipped to capitalize on this trend and achieve substantial growth.

Next Section: Bearish Outlook

Bearish Outlook

Despite Aura Health's promising user base and progress in the mental wellness marketplace, several factors contribute to a bearish outlook. First and foremost, the mental health app space is extremely competitive, with heavyweights like Calm and Headspace dominating the market. These established competitors have a significant user base, extensive brand recognition, and financial resources. Aura Health's differentiation in this crowded market remains unclear, which raises concerns about its long-term viability and ability to capture a significant market share.

Furthermore, with a net income of -$1.58 million, the path to profitability looks challenging. The company must substantially increase its revenue or decrease its burn rate to become profitable.

Another point of concern is the lack of patented technology, which could hinder Aura Health's ability to protect its intellectual property and maintain a competitive edge. In the tech-centric world of health apps, innovation and safeguarding such innovations are crucial for sustained growth and market leadership. The absence of patents could make Aura Health vulnerable to competitors who may replicate or improve upon their offerings.

Lastly, the extremely competitive landscape, combined with the low barriers to entry in the mental health app market, means that Aura Health faces the constant threat of new entrants. While the company has attracted many users, maintaining and expanding this user base will require continuous innovation, marketing efforts, and potentially significant capital investment. 

Next Section: Executive Summary

Executive Summary

Aura Health, a content platform in the digital mental wellness space, has demonstrated significant growth and traction in a highly competitive market. With over 8 million users and $25 million in lifetime revenue, Aura Health stands out for its comprehensive approach to mental wellness, offering content, coaching, and community services. 

The digital mental health market is experiencing rapid growth, driven by increasing global awareness of mental health issues and the demand for convenient and accessible mental health services. Aura Health's platform, which allows mental health coaches and therapists to provide digital services and users to access personalized mental wellness content, is well-positioned to capitalize on these trends. The company's ability to generate substantial revenue while expanding its user base is indicative of its strong market fit and the effectiveness of its offerings.

Despite its achievements, Aura Health operates in a space with low barriers to entry and faces stiff competition from established players like Calm and Headspace. However, Aura Health's unique value proposition, which combines content, coaching, and community, sets it apart from these competitors and offers a more holistic approach to mental wellness. The company's focus on product development and marketing, as indicated by its use of proceeds, suggests a commitment to further innovation and market expansion.

Financially, Aura Health has demonstrated solid growth, with an annual revenue of $6,925,838 and a growth rate of 43.17%. While the company has not achieved profitability, its high growth trajectory and strategic investments in marketing and product development are promising indicators of its potential for future profitability. With a pre-money valuation of $60 million, Aura Health is well valued, reflecting its market potential and the confidence of its backers, including Cowboy Ventures and Reach Capital.

Disclaimer

The AI-enhanced analyst reports ("AI reports") provided by KingsCrowd are experimental in nature and may exhibit certain limitations and uncertainties. These reports are generated in part or in whole by artificial intelligence algorithms, which have the potential to hallucinate (e.g. generate fictitious information), interpret data incorrectly, omit information, or reference sources of data that may contain inaccuracies.

While we strive to provide reliable and accurate information, it is essential to understand that the AI reports should not be solely relied upon as the basis for making investment decisions. We strongly advise all users to exercise caution, conduct thorough due diligence, and verify data and facts independently before making any investment decisions.

The AI reports are intended to serve as one of the tools in your investment research process, offering additional insights and perspectives, and exposing more of our dataset to customers by transforming that data into natural language. They should be used in conjunction with other sources of information and professional judgment. KingsCrowd does not assume any liability for the accuracy, completeness, or reliability of the AI reports or any investment decisions made based on them.

Investing in startups and early-stage companies involves inherent risks, and it is essential to consult with qualified professionals and seek independent financial advice before making any investment decisions.

By accessing and using the AI reports, you acknowledge and accept the experimental nature of this feature and agree to use it at your own risk.

Please note that this disclaimer may be subject to updates and revisions as we continue to enhance our AI algorithms and improve the accuracy and reliability of the generated reports.

Founders: enhance your startup's credibility on KingsCrowd. Create an account to claim this raise page.
Add to portfolio
Aura Health on Dealmaker Securities 2024
Platform: Dealmaker Securities
Security Type: Equity - Preferred
Valuation: $60,000,000
Price per Share: $1.15

Follow company

Follow Aura Health on Dealmaker Securities 2024

Buy Aura Health (previously Aura)'s Deal Report

Aura Health (previously Aura) Deal Report

Get KingsCrowd’s comprehensive report on Aura Health (previously Aura) including:

  • How our proprietary algorithm rates their current capital raise (1-5 stars)
  • Detailed price, market, team, differentiators, performance, and risk ratings
  • Whether Aura Health (previously Aura) is undervalued or overvalued
  • Scores on the founding team and key personnel's background and expertise
  • Our deep-dive analyst report reviewing the deal's investment potential and bullish vs. bearish outlook

Buy the Aura Health (previously Aura) deal report for only $10!

Email address:
Looking to buy more than one deal report? Get unlimited reports by upgrading to Edge