Better U

Better U

Open  for investment

About this raise

Better U, with a valuation of $29.97 million, is raising funds on StartEngine. The company provides science-backed treatments for a variety of mental and physical health struggles. Better U integrates talk therapy, sexual health, weight loss, ketamine-assisted therapy, and functional medicine to support lasting improvement and deliver holistic well-being. The platform generates $700,000 in monthly revenue, with 89% of the clients reporting significant relief within one month. Derek Du Chesne founded Better U in June 2021. The current crowdfunding campaign has a minimum target of $123,998 and a maximum target of $1.23 million. The campaign proceeds will be used for research and development, company employment, marketing, and working capital.

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Investment Overview

Committed this round: $254,612

Deal Terms

Total Commitments ($USD)

Platform
StartEngine
Start Date
11/18/2024
Close Date
04/30/2025
Min. Goal
$19,996
Max Goal
$1,234,989
Min. Investment

$245

Security Type

Equity - Common

Series

Pre-Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$5.21

Pre-Money Valuation

$29,974,120

Company & Team

Company

Year Founded
2021
Industry
Healthcare & Pharmaceuticals
Tech Sector
HealthTech
Distribution Model
B2C
Margin
High
Capital Intensity
Low
Location
West Hollywood, California
Business Type
Growth
Company Website
Visit Website

Team

Employees
21
Prior Founder Exits?
No
Founder Name
Derek Du Chesne
Title
CEO

Financials

as of September 30, 2024
 Revenue +153% YoY
$4,304,019
 Monthly Burn
Profitable
 Cash on Hand
$422,000
Gross Margin
93%

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$4,304,019

$1,700,344

COGS

$304,700

$410,534

Tax

$91,740

$0

 

 

Net Income

$329,768

$103,415

Summary Balance Sheet

FY 2023 FY 2022

Cash

$122,268

$217,155

Accounts Receivable

$213,848

$0

Total Assets

$799,379

$218,277

Short-Term Debt

$307,809

$99,802

Long-Term Debt

$54,407

$0

Total Liabilities

$362,216

$99,802

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Synopsis

Better U, operating in the healthcare and pharmaceuticals industry, provides treatments for mental and physical health challenges. The company offers a range of services, including talk therapy, ketamine-assisted therapy, clinical weight loss, sexual health, and functional medicine. These services integrate to support holistic well-being. Better U primarily serves individuals seeking relief from mental health issues and those looking for comprehensive health improvement solutions.

The company addresses the growing challenge of mental health disorders, which affect a significant portion of the population. Traditional treatments often lack immediate results, leaving patients without timely relief. Better U offers a solution through a combination of therapies, including ketamine-assisted treatment, which is known for its rapid effects in alleviating symptoms of depression and other mental health conditions. This approach aims to provide quicker relief and sustained improvement for patients.

In everyday scenarios, individuals often struggle with persistent mental health issues that disrupt their daily lives. They may find traditional treatments slow and ineffective, impacting their ability to function optimally. Better U's services offer an alternative by providing rapid symptom relief and comprehensive support. For example, a person dealing with severe depression might experience significant symptom improvement within a month through Better U's integrated therapies, enabling them to regain control over their daily activities and improve their quality of life.

Next Section: Price

Price

Better U is offering common equity as part of its current fundraising round. The company is valued at approximately $30 million, with shares priced at $5.21 each. Investing in common equity provides investors with ownership in the company, but it typically does not offer the preferential treatment or protections that preferred equity might provide in terms of liquidation preferences and dividend rights.

The exit potential for Better U hinges on its ability to significantly scale its operations and market presence. To achieve a 10X return, the company would need to reach a valuation of about $300 million, assuming no dilution. This level of growth would likely require substantial increases in revenue, user base, and market penetration. Given the company's current annual revenue of $4.3 million and a revenue multiple of 7.0x, the current valuation appears to be aligned with its industry peers. However, achieving the necessary scale to provide substantial returns will depend on its ability to continue its growth trajectory and capture a larger share of the healthcare market.

High revenue multiples, such as the 7.0x seen here, can indicate a potentially overvalued deal, suggesting that investors may face unfavorable terms if the company's growth does not meet expectations. Therefore, understanding the market dynamics and competitive landscape will be crucial for assessing the potential return on investment.

Next Section: Market

Market

The addressable market for Better U is the U.S. antidepressant market, valued at approximately $5 billion with an annual growth rate of 7.2%. This market is driven by increasing recognition of mental health issues and a growing demand for alternative treatments, such as ketamine-assisted therapy.

Market trends indicate a rising interest in non-traditional therapies, as the limitations of standard antidepressant medications become more apparent to both healthcare providers and patients. This shift towards alternative mental health treatments could positively impact Better U by increasing demand for its integrated treatment solutions, which appeal to individuals seeking holistic and rapid relief options.

While the overall market for mental health solutions is broad, Better U's focus on ketamine-assisted therapy and other integrated treatments positions it within a specific niche of the broader market. This targeted approach can capture a segment of patients who are dissatisfied with conventional treatments or who have not experienced sufficient benefits from traditional antidepressant medications.

The company's ability to effectively address this niche is supported by the growing body of research and acceptance of ketamine's potential in treating mental health disorders, including depression and PTSD. However, the reliance on alternative therapies also presents challenges, such as regulatory scrutiny and shifts in public perception, which could hinder market acceptance and growth.

Overall, Better U operates within a growing market environment that presents opportunities for expansion, driven by evolving treatment preferences and a significant addressable market size.

Next Section: Team

Team

Better U's team is led by Derek Du Chesne, the founder and CEO, who brings a background in marketing and growth strategies from the cannabis sector. His personal experience with ketamine therapy has driven his commitment to making psychedelic treatments accessible. This aligns closely with Better U's mission to offer alternative mental health solutions.

Dr. Zaid Fadul serves as the Medical Director, offering extensive expertise in family medicine, occupational health, and addiction medicine. His dual board certifications and experience as a Flight Surgeon with the Air Force provide a strong foundation for overseeing the company's medical protocols and ensuring high standards of care.

Kyle Johnson, the VP of Operations, has a background in functional medicine and plant-based therapies. His experience in founding alternative medicine clinics supports Better U's holistic approach to health and wellness, contributing to the operational execution of its treatment model.

The advisory board includes Dr. Rafid Fadul, a leader in digital health and telemedicine, whose expertise is valuable for integrating technology into Better U's service offerings. His insights can guide the company in leveraging digital platforms to expand reach and enhance patient care.

Hannah Gantt, Director of Integration, is a psychotherapist specializing in modalities such as mindfulness and cognitive behavioral therapy. Her role involves integrating these therapies with psychedelic treatments, ensuring a comprehensive and effective treatment plan for patients.

The team is well-positioned to achieve Better U's goals of expanding its treatment offerings and reaching a broader patient base. However, as the company scales, it may benefit from strengthening its marketing and technology teams to support growth and enhance digital engagement. Addressing these areas could be critical for sustaining momentum and achieving future milestones.

Next Section: Differentiation

Differentiation

Better U operates in a competitive landscape with numerous companies offering mental health treatments and therapies. Notable competitors include Mindbloom and Field Trip Health, both of which also focus on psychedelic-assisted therapies. Mindbloom offers ketamine therapy through a telehealth model, providing convenience and privacy to patients. Field Trip Health operates physical clinics that offer a range of psychedelic therapies, including ketamine, with a focus on creating a therapeutic environment for patients.

In terms of company size, Better U has rapidly scaled its operations, serving over 12,000 patients in under three years. This growth is comparable to Mindbloom, which has also expanded its patient reach through a digital-first approach. Field Trip Health, with its emphasis on physical locations, may have a different growth trajectory due to the capital-intensive nature of its business model.

Regarding product quality, Better U integrates multiple therapeutic modalities, including ketamine-assisted therapy, talk therapy, and functional medicine, which may offer a more comprehensive treatment approach compared to competitors focusing solely on psychedelic therapies. This integration can appeal to patients seeking a holistic treatment plan.

Pricing strategies in this sector can vary significantly. Better U's revenue model is primarily recurring, which may offer more predictable costs for patients compared to session-based pricing models used by some competitors. Mindbloom's telehealth model potentially offers competitive pricing due to lower overhead costs, while Field Trip Health's clinic-based approach might involve higher pricing to cover operational expenses.

The primary customer demographic for Better U includes adults experiencing mental health challenges, particularly those seeking alternative treatments to traditional antidepressants. This demographic often includes individuals who have not found success with conventional therapies and are open to exploring new treatment modalities. The target audience may also include younger adults who are more receptive to holistic health approaches and emerging therapies.

In summary, Better U differentiates itself through its integrated treatment approach and focus on holistic well-being, catering to a specific niche within the broader mental health market.

Next Section: Performance

Performance

Better U has demonstrated significant growth, with annual revenue increasing from $1.7 million to $4.3 million, reflecting a year-over-year growth rate of 153%. This growth underscores the company's ability to scale its operations and expand its customer base effectively.

The company reports generating $700k in monthly revenue, which indicates a strong revenue stream and highlights its capacity to maintain consistent earnings. Better U's profitability within two years of operation further emphasizes its financial stability and operational efficiency.

Regarding financial metrics, Better U's most recent cash on hand is reported at $422k. This cash position provides a buffer for ongoing operational expenses and potential investments in growth initiatives. The company does not currently report a monthly burn rate, suggesting careful management of expenses relative to revenue generation.

Better U's performance is marked by its rapid expansion, serving over 12,000 patients in under three years. This operational scale, achieved through bootstrapped efforts, illustrates the company's effective use of initial capital and strategic growth planning.

Overall, Better U's financial performance reflects robust growth and prudent financial management. However, sustaining this trajectory will require continued focus on scaling operations and maintaining market competitiveness.

Next Section: Risk

Risk

Better U faces specific risks related to its current business model and market environment. A prominent risk is the company's involvement in a highly competitive healthcare sector, particularly within the mental health treatment space. The market is characterized by numerous established competitors, which could pose challenges in terms of differentiation and market share capture. This competitiveness may require significant investment in marketing and innovation to maintain and grow its customer base.

The company operates under a relatively high revenue multiple of 7.0x, which, while not excessively high, suggests there could be concerns about overvaluation if growth slows or fails to meet expectations. This valuation level could imply that investors are paying a premium, which heightens the risk if the company's projected growth is not realized.

Legal concerns pose another potential risk. Although Better U currently faces no known lawsuits, operating in the healthcare sector often involves regulatory complexities and the potential for legal challenges. Ensuring compliance with healthcare regulations and maintaining robust legal frameworks to mitigate potential disputes will be crucial.

Additionally, Better U's growth relies heavily on the scaling of its treatment model and the broader acceptance of innovative therapies like ketamine-assisted treatment. Should these therapies face regulatory scrutiny or fail to gain widespread acceptance, the company's growth prospects could be adversely affected. The need for ongoing research and development to back therapeutic claims and maintain competitive advantage also presents a financial burden.

While the company has demonstrated rapid initial growth, sustaining this momentum and addressing these risks will be essential for achieving long-term success and delivering value to investors.

Next Section: Bullish Outlook

Bullish Outlook

The bullish outlook for Better U is supported by several key factors that highlight its potential for growth and success. The company operates within a $5 billion U.S. antidepressant market that is expanding at an annual rate of 7.2%, providing significant market opportunities. Better U's focus on integrated therapies, such as ketamine-assisted treatment, positions it well to capture the growing demand for alternative mental health solutions. This approach differentiates it from competitors, offering a comprehensive treatment model that appeals to patients seeking holistic care.

The leadership team, led by Derek Du Chesne, brings relevant expertise and a personal commitment to the company's mission. The team’s diverse skill set in healthcare and digital health enhances its ability to execute strategic objectives effectively. This strong foundation can drive the company's efforts to expand its reach and enhance its service offerings.

Better U's rapid revenue growth, increasing from $1.7 million to $4.3 million year-over-year, underscores its financial health and operational efficiency. This growth trajectory, combined with a monthly revenue of $700k, indicates a robust business model capable of sustaining profitability and supporting future expansion. The company's ability to bootstrap its operations and achieve profitability early on is a testament to its effective cost management and strategic planning.

Emerging trends in mental health treatment, particularly the acceptance of psychedelic therapies, serve as growth drivers for Better U. The company is well-positioned to capitalize on these trends through potential expansion into new markets and the development of additional treatment modalities. These factors, coupled with its current market positioning, provide a solid foundation for continued success and potential returns for investors.

Overall, Better U's strong market position, capable leadership, and proven financial performance present a compelling case for potential growth and value generation.

Next Section: Bearish Outlook

Bearish Outlook

The bearish outlook for Better U centers on several key challenges and risks. The competitive landscape in the mental health sector is intensely crowded, with numerous established players offering both traditional and alternative therapies. This competition can limit Better U's ability to capture and expand its market share, especially if larger companies with more resources enter the alternative therapy space.

Regulatory hurdles pose another significant risk. The company relies heavily on ketamine-assisted therapy, which may face increased scrutiny from regulatory bodies. Changes in regulations or delays in obtaining necessary approvals could disrupt operations and limit service offerings, potentially impacting growth and patient acquisition.

In terms of market adoption, while there is growing interest in alternative therapies, the niche nature of these treatments may restrict Better U's appeal to a broader customer base. This limited reach could slow the company's expansion efforts and affect its ability to scale effectively.

Financially, Better U's high revenue multiple of 7.0x suggests potential overvaluation, which could deter investors seeking reasonable valuation metrics aligned with industry standards. This concern is compounded by the absence of a clear monthly burn rate, which may lead to uncertainties about the company's cash flow management and financial sustainability.

Although the leadership team has relevant expertise, the company may face challenges in scaling its marketing and technology efforts to support growth. The lack of strategic partnerships or significant customer endorsements may also hinder its ability to establish a strong market presence and credibility.

Overall, while Better U presents opportunities for growth, these factors collectively highlight the risks and challenges that could impede its progress and limit its potential for delivering substantial returns to investors.

Next Section: Executive Summary

Executive Summary

Better U operates in the healthcare sector, offering integrated mental and physical health treatments. It targets individuals seeking alternative therapies, particularly those dissatisfied with traditional antidepressants. The company has demonstrated strong growth, with annual revenue rising significantly to $4.3 million and a current monthly revenue of $700k. It offers common equity at a valuation of approximately $30 million, with shares priced at $5.21 each.

The U.S. antidepressant market, valued at $5 billion and growing at 7.2% annually, provides a robust environment for Better U's offerings. The company's integrated approach to treatment differentiates it from competitors like Mindbloom and Field Trip Health, appealing to a niche demographic open to holistic therapies. This positioning aligns with market trends favoring alternative health solutions.

The team, led by Derek Du Chesne and supported by experienced healthcare professionals like Dr. Zaid Fadul, aligns well with Better U's goals. Their expertise in alternative therapies and digital health supports the company's strategic objectives. However, the competitive landscape and reliance on alternative therapies present risks, including regulatory challenges and market acceptance.

Bullish factors include strong revenue growth, a comprehensive treatment model, and alignment with evolving market trends. Conversely, bearish considerations involve competitive pressures, potential overvaluation, and the need for regulatory navigation. These factors present a balanced view of Better U's growth potential and challenges.

Overall, Better U presents a compelling investment opportunity, leveraging market trends and a strong team to drive growth. However, potential investors should weigh the risks associated with market competition and regulatory dynamics to make informed decisions.

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Company Funding & Growth

Funding history

Total Prior Capital Raised
$55
VC Backed?
No
Close Date Platform Valuation Total Raised Security Type Status Reg Type
04/30/2025 StartEngine $29,974,120 $254,612 Equity - Common Active RegCF
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Better U on StartEngine 2024
Platform: StartEngine
Security Type: Equity - Common
Valuation: $29,974,120
Price per Share: $5.21

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