epi.logic
epi.logic reimagines clinical skincare by marrying intelligence with indulgence.
Overview
Raised: $35,100
Rolling Commitments ($USD)
04/02/2022
$206
13
2018
Beauty & Personal Care
Retailtech
B2C
Medium
High
Summary Profit and Loss Statement
Most Recent Year | Prior Year | |
---|---|---|
Revenue |
$217,238 |
$4,865 |
COGS |
$77,472 |
$19,136 |
Tax |
$0 |
$0 |
| ||
| ||
Net Income |
$63,072 |
$-42,701 |
Summary Balance Sheet
Most Recent Year | Prior Year | |
---|---|---|
Cash |
$295,845 |
$2,299 |
Accounts Receivable |
$0 |
$0 |
Total Assets |
$295,845 |
$2,299 |
Short-Term Debt |
$0 |
$0 |
Long-Term Debt |
$0 |
$0 |
Total Liabilities |
$0 |
$0 |
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Synopsis
Millions of Americans struggle with dry skin, acne, eczema and dozens of other skin problems. And while there is no shortage of lotions, facial cleansers and other products that claim to help solve these issues, it can be difficult for the average person to determine which product is best for their skin. As such, establishing an effective skin care regimen can be a daunting task.
That’s where epi.logic comes in. Epi.logic — founded by a board-certified plastic surgeon — is a clinical skin care line that combines intelligence with indulgence. Epi.logic’s products are friendly to a variety of skin types, including sensitive and post-treatment skin. The product line currently includes moisturizers, repair creams, vitamin serums, cleansers, and more.
Epi.logic’s current WeFunder raise has been rated a Neutral Deal by the KingsCrowd investment team.
Price
Epi.logic’s current round has a valuation cap of $4 million. It generated $217,238 in revenue last year, which is tremendous progress from 2019’s revenue of $4,865. The company’s revenue multiple is average compared to the cosmetic and skin care industry averages. Overall, Epi.logic’s valuation is a very fair deal.
Market
Epi.logic operates in the US skin care market. In 2021, $18.1 billion was spent on skin care products in the US alone. The market is expected to grow at an annual rate of 5.5% until 2026, which is on the slow side. In 2021, 74% of sales in the skin care segment are attributed to non-luxury skin care goods. Money spent on non-luxury skin care items will likely increase given industry trends. If convenient and still relatively affordable, it is likely that US consumers will try to make more skin care purchases with proven results in the future.
Overall, epi.logic’s addressable market is large, though slow-growing, and the company has a variety of opportunities to further differentiate itself. It is also a crowded market, which means epi.logic will need to outperform many competing brands. It appears epi.logic is starting to explore the reparative and age-prevention skin care markets. While this is not a winner-take-all market, epi.logic could dominate the reparative and age prevention skin care markets through its carefully developed, intelligent skin care products in the future.
Team
Epi.logic’s CEO, Chaneve Jeanniton, founded the company in 2018. She is well versed in skin care science and medicine through her education at Tulane University and SUNY Stony Brook School of Medicine. Jeanniton completed her ophthalmology residency at Mount Sinai Hospital. At the New York Eye and Ear Infirmary, she also received a fellowship for ophthalmic pathology as well as oculoplastic and reconstructive surgery. She is a board-certified oculofacial plastic cosmetic surgeon and was voted best cosmetic surgeon for eyes by Goop. Her education, experience, and positive publicity help to make epi.logic a recognized and trusted skin care brand.
Samantha Mims comprises the rest of the epi.logic team. Mims is a licensed esthetician and holds a Bachelor of Science from St. Francis College. She has extensive experience as a skin therapist and brings a wealth of knowledge to product development.
The epi.logic team boasts complementary skill sets and diverse backgrounds despite being small in size. However, the lean and inexperienced team may make it difficult for epi.logic to scale and navigate business opportunities. Jeanniton lacks prior entrepreneurial experience, which may hinder the company going forward. In order to grow, epi.logic will need to hire experienced sales, marketing, product development, and production staff. Having the proper team support should help epi.logic gain traction and establish itself in the skin care market.
Differentiators
The market for skin care treatments and products is crowded, and it can be difficult to determine qualities that distinguish one product or brand from another. Competitors include Drunk Elephant, Olay, Pond’s, and Origins, to name a few. These competitors offer similar products to epi.logic, but they vary in price. Epi.logic seeks to distinguish itself by delivering proven results through scientifically researched and tested products.
Epi.logic’s price point is also very reasonable, making its products more appealing than other high-end skin care options. Gel cleansers and liquid toning formulas are priced at $48 for a 4 ounce bottle, cheaper than competitors like Tata Harper, Augustinus Bader, and Dr. Barbara Sturm cleansers ranging from $65 to $76 for a 4-ounce bottle or less. Epi.logic’s high-end serums, which run $110 to $210 for 1-ounce bottles, are also more affordable than competitors like La Mer, SK-II, and fresh, which range from $245 to $400. Compared to other similar products, epi.logic appears to offer higher-quality, clean, and effective products at a lower price point.
Performance
Epi.logic’s revenue grew by 4,365% from 2019 to 2020, from $4,865 to $217,238. This significant growth is a positive indicator for epi.logic’s future in the skin care sector. Epi.logic’s monthly burn rate is relatively low, which is a direct result of running a lean team. Epi.logic is able to move quickly, test, and expand its product offering more rapidly than many other companies in this space. Committed to embracing the breadth of clinical skin care tools, epi.logic will develop tools for home use, technology for better results monitoring, and additional in-office protocols.
Epi.logic appears to be focused on direct-to-consumer sales, but the company plans to move into the mainstream retail space by the end of 2021. Given the increase in demand, epi.logic will move into a new contract-manufacturing lab and scale production up.
Epi.logic has been featured by major fashion magazines such as Vogue and Elle. And in 2020, it was recognized with Refinery 29’s Beauty innovator Award. Overall, it has performed well thus far.
Risks
Epi.logic’s risk level is moderate. Epi.logic has a market risk due to the competitive beauty industry. While epi.logic might offer a superior product to its competitors, it can be difficult to stand out among established and trusted brands.
Epi.logic’s small team also raises growth concerns. While the founder is knowledgeable and respected in her field, she might lack the necessary support to quickly scale epi.logic. Additional teammates to support sales, marketing, brand development, and production efforts would likely help epi.logic gain traction in the skin care market more quickly.
The company was founded in 2018, but it has only recently gained financial traction. Being in the consumer goods and product space, this raises questions about future financial growth. Epi.logic will need to address its limited plans for scaling and distribution to ensure future profitability and financial growth for investors.
Bearish Outlook
Epi.logic’s biggest concerns are competition and leadership. It operates in a crowded market, where legacy brands dominate. Name recognition is vital for product adoption and ensuring brand loyalty. As a new company, it could struggle to convert customers. To avoid being one of many, epi.logic will need to further differentiate itself moving forward and claim more of the market share.
The company also lacks necessary team support. Without additional staff, epi.logic’s small team of two could struggle to grow the company. Founder Chaneve Jeanniton lacks prior business experience, which could also hinder the company’s growth.
Bullish Outlook
Epi.logic is gaining financial traction, creating loyal customers, and diversifying its offerings. The company’s revenue has grown significantly. And its founder has established credibility as a knowledgeable and popular cosmetic surgeon.
The competition in this space is fierce, but it is not a winner-take-all industry. Epi.logic has developed intelligent and inclusive clinical skin care products, allowing customers to gain agency in their age-prevention efforts. Additionally, the clinical skin care space has many niches for epi.logic to expand into with its growing customer base. The company’s price range also makes it more competitive and appealing to new customers looking for effective yet luxurious skin care options.
Executive Summary
Epi.logic is a company providing clinical skin care products to customers. Epi.logic saw tremendous revenue growth between 2019 and 2020, and the company has a growing customer base. It has goals to secure partnerships and more product offerings. Its CEO has extensive medical experience, and she has a deep understanding of holistic facial refinement. Epi.logic’s growing customer base and price range within the premium skin care market is encouraging for investors. The company seems committed to supporting customers seeking results-driven skin care. All things considered, the current raise’s valuation is a fair deal for investors.
Although epi.logic has strong product offerings, it still has defensibility concerns because it offers similar products to current competitors. Operating within such a crowded market with a small team, a founder with no prior business experience and little capital leaves epi.logic particularly vulnerable. Therefore, epi.logic has been rated a Neutral Deal by the KingsCrowd investment team.
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Analysis written by Carolyn Price, November 12, 2021.