humanQ

humanQ

Growth Stage

Unlocking Human Potential

Unlocking Human Potential

Overview

Raised to Date: Raised: $85,700

Total Commitments ($USD)

Platform

Wefunder

Start Date

08/29/2023

Close Date

09/29/2023

Min. Goal
$50,000
Max. Goal
$124,000
Min. Investment

$1,000

Security Type

SAFE

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Valuation Cap

$14,000,000

Discount

0%

Rolling Commitments ($USD)

Status
Funded
Reporting Date

09/30/2023

Days Remaining
Funded
% of Min. Goal
Funded
% of Max. Goal
Funded
Likelihood of Max
Funded
Avg. Daily Raise

$2,857

# of Investors

46

Momentum
Funded
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Year Founded

2019

Industry

Business Services, Software, & Applications

Tech Sector

EnterpriseTech

Distribution Model

B2B/B2C

Margin

High

Capital Intensity

Low

Location

San Francisco, California

Business Type

Growth

humanQ, with a valuation of $14 million, is raising funds on Wefunder. The company provides group coaching services to unlock human potential. humanQ specializes in group coaching with its six-step scientific methodology deconstructing and reconstructing the brain and its trademarked neuroscience-backed humanQ framework focused on scientific transformation. Nishika De Rosairo founded humanQ in January 2019. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $1.24 million. The campaign proceeds will be used for sales, technology, business development, and product development.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$1,322,694

$751,386

COGS

$272,036

$253,885

Tax

$2,914

$1,007

 

 

Net Income

$-1,043,883

$-471,681

Summary Balance Sheet

FY 2022 FY 2021

Cash

$219,912

$1,356,348

Accounts Receivable

$133,200

$261,075

Total Assets

$413,054

$1,672,585

Short-Term Debt

$204,514

$410,471

Long-Term Debt

$104,543

$169,232

Total Liabilities

$309,057

$579,703

Financials as of: 08/29/2023
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Analyst Report

Synopsis

Professional development is crucial in today's fast-paced, ever-changing business environment. HumanQ aims to democratize access to career coaching by offering group coaching services. These services are delivered in small cohorts of six individuals, with programs running from six weeks to a year. HumanQ also offers drop-in coaching sessions for more flexible learning. The company's approach is based on a six-step scientific methodology aimed at deconstructing and reconstructing the brain using a neuroscience-backed framework focused on scientific transformation.

HumanQ's services are designed to cater to both businesses and individuals. HumanQ's coaching programs can help foster a culture of continuous learning and development for businesses, helping retain talent and boost productivity. These programs provide individuals with an affordable and accessible way to develop professional skills and accelerate career progression.

Next Section: Price

Price

HumanQ is currently valued at $14 million and is raising funds on Wefunder. When considering the valuation of humanQ, it is important to note that the company generated $1.32 million in annual revenue for the last fiscal year, resulting in a revenue multiple of approximately 10.58. Compared to the online private markets, this multiple is average, if not slightly below average, indicating that humanQ is appropriately valued in the market. Overall, humanQ's valuation appears reasonable, given its revenue and growth potential.

Next Section: Market

Market

The US career coaching market is large and growing, at $18.4 billion, with a growth rate of 9.1%. This is a large but saturated market that will likely remain fragmented. Workplace stress and burnout are key market drivers. The modern work environment often involves high stress levels, leading to a demand for coaching services to help individuals manage stress, enhance work-life balance, and improve overall well-being. Such trends underscore the need for services to facilitate individual and peer-to-peer learning and help individuals and organizations align with top priorities. Additionally, technology has made coaching more accessible through online platforms, video conferencing, and mobile apps, allowing coaches to reach a broader audience.

Next Section: Team

Team

HumanQ is led by founder and CEO Nishika de Rosairo. With over 18 years of business mentoring experience, de Rosairo brings a wealth of knowledge and expertise to the company. Her team is comprised of 8 employees. She has hired several engineers and two sales team members. As a solo founder, bringing on several individuals with complementary skill sets was smart. Overall, humanQ's team, led by experienced founder Nishika de Rosairo, is well-equipped to drive the company's growth and deliver on its mission of unlocking human potential through group coaching services. 

Next Section: Differentiation

Differentiation

HumanQ operates in the highly competitive market of career coaching services. There is no shortage of career coaching platforms like BetterUp, TheMuse, and Sharpist. HumanQ also indirectly competes with independent career coaches. The market is incredibly fragmented, which may make it difficult for HumanQ to acquire a significant market share. 

HumanQ's clients seem to be happy with the services. The company has a net promoter score of 92, indicating that customers will likely recommend the service. That said, this is a complex industry in which to differentiate. Most competitors also offer both B2B and B2C solutions. The quality of coaching services can also be subjective and vary significantly, as very few regulations govern the career coaching space. HumanQ claims that the coaching is backed by neuroscience, which may contribute to customer satisfaction but is insufficient to differentiate in the market entirely. Many career coaches have degrees in psychology or neuroscience and could just as easily apply science to their coaching. 

While HumanQ has a presence in the career coaching industry and has secured impressive clientele, it lacks clear differentiation from its competitors. This may hinder its ability to stand out and capture market share in a highly competitive market.

Next Section: Performance

Performance

HumanQ has shown strong growth and success in the group coaching industry. The company has raised $2.75 million in prior funding rounds, with a recent investment of $750,000 from Kindred Ventures. This investment demonstrates confidence in humanQ's business model and potential for growth.

HumanQ has partnered with major customers such as Rakuten, Amgen, Chobani, and Penn State. These partnerships indicate that well-known organizations value and trust HumanQ's services. These partnerships also provide humanQ with a solid customer base and potential for further growth.

HumanQ generated $1.32 million in annual revenue in the past fiscal year. This represents a significant growth rate of 76.03% since the fiscal year prior. That said, the company has yet to achieve profitability.

Next Section: Risk

Risk

Investing in HumanQ carries certain risks that investors should be aware of. One significant risk is the highly competitive landscape in which HumanQ operates. The company faces direct competition from established players in the career coaching industry, such as BetterUp, TheMuse, and Sharpist. These competitors have already established their presence and may have a larger market share and more resources to invest in marketing and product development. This heightened competition could limit HumanQ's ability to attract and retain customers.

In addition, the successful delivery of coaching services requires a strong team of qualified coaches, and any issues with the quality or availability of coaching services could negatively impact customer satisfaction and retention. The team must ensure that it has robust systems and processes to provide high-quality coaching experiences to its clients consistently.

Furthermore, while HumanQ has experienced revenue growth, it is operating at a net loss. This indicates that the company's current expenses are exceeding its revenue, which could raise concerns about its long-term financial sustainability. Investors should carefully evaluate HumanQ's financial performance and projections to assess the company's ability to achieve profitability and generate positive cash flow in the future.

Overall, while HumanQ has demonstrated market acceptance and revenue growth, investors should carefully consider the competitive landscape, operational risks, and financial performance before making an investment decision.

Next Section: Bullish Outlook

Bullish Outlook

HumanQ has demonstrated impressive revenue growth, with annual revenue of $1.3 million for the most recent fiscal year, representing a growth rate of 76.03%. Much of this traction comes from established partnerships with major customers such as Rakuten, Amgen, Chobani, and Penn State. Kindred Ventures backs the company and has raised more than $2 million in outside funding. This support further validates the company's value proposition and growth potential.

Finally, the HumanQ team is impressive. Founder Nishika de Rosairo has almost two decades of direct industry experience and has hired a strong team with backgrounds in sales and engineering.

Next Section: Bearish Outlook

Bearish Outlook

HumanQ operates in a highly competitive landscape, with several direct and indirect competitors in the career coaching industry. While the company offers group coaching services, it faces competition from independent career coaches and established players like BetterUp, TheMuse, and Sharpist. These competitors have already established their presence in the market and may have a larger customer base and more resources to invest in marketing and product development. It will be challenging for HumanQ to differentiate itself and capture a significant market share in such a crowded space.

Furthermore, HumanQ's financial performance raises concerns. The company generated $1.3 million in revenue in its most recent fiscal year but also reported a net loss of over $1 million. While revenue growth has been positive, with a negative net income, HumanQ may struggle to achieve sustainable profitability soon, raising questions about its long-term viability as a business.

Next Section: Executive Summary

Executive Summary

HumanQ offers structured and consistent group coaching at scale, with products including Coaching Tracks and Drop-In Coaching Sessions. These products are designed to align with an organization's top priorities, facilitating individual, peer-to-peer, and experiential learning. HumanQ's services are used by noteworthy clients such as Rakuten, Amgen, Chobani, and Penn State.

The company operates in the growing personal and professional development market, which is seeing increased demand as individuals and organizations recognize the importance of coaching services. However, the industry is highly competitive and relatively unregulated, which can create barriers to entry and hinder credibility. Despite these challenges, HumanQ has secured prior funding of $2.75 million and brought in $1.32 million in revenue for the most recent fiscal year.

HumanQ is still in the pre-profit phase despite its achievements, with a net income of -$1.04 million in the most recent fiscal year. Although the company is showing impressive traction, financial standing, and the industry's highly competitive nature are factors that potential investors should consider.

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humanQ on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $14,000,000

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