Loosid

Loosid, with a valuation of $32 million, is raising funds on Wefunder. The company has developed a sobriety app that serves as a social network for people recovering from alcohol abuse disorders. Loosid’s app enables users to celebrate their sobriety with other members and seek support and virtual help from community members. The offerings of Loosid include treatment guides, boozeless guides, recovery voices, daily sober tips, community, sober dating, and a sobriety tracker. Mj Gottlieb and Zhanna Basina founded Loosid in March 2018. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $750,000. The campaign proceeds will be used for user acquisition, app development, management, and general and administrative expenses.

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Investment Overview

Raised this Round:
$191,686 - RegCF
$1,132,121 - Total

Deal Terms

Total Commitments ($USD)

Platform
Wefunder
Start Date
09/19/2024
Close Date
04/30/2025
Min. Goal
$50,000
Max. Goal
$750,000
Min. Investment

$100

Security Type

SAFE

Series

Seed

SEC Filing Type

RegCF / RegD 506(c)    Open SEC Filing

Early Bird Val. Cap

$24,000,000

Valuation Cap

$32,000,000

Discount

0%

Company & Team

Company

Year Founded
2018
Industry
Healthcare & Pharmaceuticals
Tech Sector
HealthTech
Distribution Model
B2C
Margin
Low
Capital Intensity
Low
Location
Sunny Isles, Florida
Business Type
High Growth
Company Website
Visit Website

Team

Employees
24
Prior Founder Exits?
Yes
Founder Name
Michael J Gottlieb
Title
CEO
Founder Name
Zhanna Basina
Title
Co-Founder

Financials

as of August 31, 2024
 Revenue +900% YoY
$600,000
 Monthly Burn
$145,000
 Runway
3.4 months

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$59,798

$47,015

COGS

$88,575

$357,235

Tax

$0

$0

 

 

Net Income

$-1,294,215

$-616,429

Summary Balance Sheet

FY 2023 FY 2022

Cash

$60,094

$1,384

Accounts Receivable

$0

$0

Total Assets

$60,094

$1,384

Short-Term Debt

$0

$0

Long-Term Debt

$3,165,437

$1,721,599

Total Liabilities

$3,165,437

$1,721,599

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Synopsis

Loosid is a company that has developed a sobriety app serving as a social network for individuals recovering from alcohol abuse disorders. The app provides a range of features, including treatment guides, boozeless guides, recovery voices, daily sober tips, community support, sober dating, and a sobriety tracker. Loosid's primary customers are individuals in recovery or actively seeking help with their addiction.

Loosid addresses the problem of isolation and lack of support that individuals in recovery often face. Recovering from alcohol abuse can be a lonely and challenging journey, and many people struggle to find the necessary support and resources. Traditional support groups and treatment options may not be accessible or sufficient for everyone.

The company offers a comprehensive solution through its app, which connects users with a supportive community and provides various tools to aid in their recovery journey. By offering virtual help, community engagement, and practical resources, Loosid helps users maintain their sobriety and find encouragement from others who understand their struggles.

For example, consider someone who has recently decided to quit drinking and is looking for support. They might feel isolated and unsure where to turn for help. By using Loosid, they can connect with others who are also in recovery, access daily tips to stay motivated, and find local events that align with their new lifestyle. This sense of community and access to resources can be crucial in helping them stay committed to their sobriety goals.

Next Section: Price

Price

Loosid is raising funds through a SAFE (Simple Agreement for Future Equity) with a valuation cap of $32 million. 

Investing through a SAFE provides investors with the potential to convert their investment into equity at a future date, typically during the next priced round of funding. The valuation cap of $32 million sets the maximum pre-money valuation at which the investment will convert into equity, offering some protection against future dilution if the company's valuation increases significantly.

To achieve a 10X return on investment, Loosid would need to reach a valuation of approximately $320 million. This calculation does not account for potential dilution but serves as a threshold for significant returns. Given the current valuation cap, reaching this level would require substantial growth in user acquisition, revenue, and market penetration.

In terms of revenue multiples, Loosid's current revenue multiple stands at 535.13x based on its annual revenue of $59.8k. This high multiple suggests that the company is currently overvalued relative to its revenue, which could indicate unfavorable deal terms for investors. To justify this valuation and achieve the desired returns, Loosid will need to demonstrate significant revenue growth and scalability.

Exit potential for startups like Loosid generally involves strategic acquisition by larger companies in the healthcare or social networking space, or an initial public offering (IPO). For Loosid to provide a 10X return, it will need to achieve key milestones such as expanding its user base, increasing subscription revenue, and maintaining high engagement levels. These factors will enhance its attractiveness to potential acquirers or public market investors.

Next Section: Market

Market

The addressable market for Loosid is the U.S. social networking app market, which is valued at approximately $14.3 billion with an annual growth rate of 22%. Key market drivers include the increasing adoption of personalized and encrypted social networking apps, which cater to users seeking privacy and tailored experiences.

One significant trend is the rise of the 'sober curious' movement. Nearly four in ten U.S. consumers closely or occasionally follow a sober curious lifestyle. This trend is driven by increasing health consciousness and the growing visibility of mental health discussions. Gen Z, in particular, shows a preference for lower alcohol consumption, with around one-third of individuals aged 18-24 not drinking alcohol at all. This demographic shift towards healthier lifestyles positively impacts the growth potential for Loosid, as it aligns well with the values and habits of a younger, health-conscious audience.

Loosid targets a niche within the broader social networking market, focusing on individuals in recovery from alcohol abuse and those adopting a sober lifestyle. While the app appeals to a specific subset of users, the alignment with current health trends and the growing 'sober curious' movement expands its potential user base.

Market trends such as the demand for encrypted messaging, personalized content, and community-based support positively influence Loosid's growth prospects. However, the highly competitive nature of the social networking market, with established players like Facebook and Meetup, poses challenges. Loosid's ability to differentiate itself through its specialized focus and comprehensive support features will be crucial in capturing and retaining users.

Overall, the positive alignment with market trends and the increasing adoption of sober lifestyles position Loosid favorably within its niche. However, effective differentiation and user acquisition strategies will be essential to fully capitalize on the growing market opportunity.

Next Section: Team

Team

Loosid's team is composed of experienced professionals with diverse backgrounds, each bringing valuable expertise to the company's mission of supporting sobriety and recovery.

MJ Gottlieb, Co-Founder and CEO, has over 31 years of entrepreneurial experience. He has owned and operated multiple businesses and a non-profit foundation. His personal journey of sobriety since 2012 positions him as a passionate advocate for the recovery community, aligning well with Loosid's objectives.

Zhanna Basina, Co-Founder, has 24 years of experience in the healthcare industry. She previously founded a healthcare conglomerate with over 2,000 employees and achieved an 8x EBITDA exit. Her personal experiences with addiction within her family motivated her to co-found Loosid, bringing both professional and personal insights to the company's mission.

Gary O'Neil, Creative Director, has 31 years of experience leading teams. He emphasizes customer-centric execution, which is crucial for developing a user-friendly and engaging app. His leadership ensures that Loosid's creative strategies align with user needs and market trends.

Carli Hughbanks, Director of Strategic Partnerships & Brand Activations, has over 15 years of experience in marketing and retention strategy. Her ability to build and maintain relationships is essential for establishing partnerships that can enhance Loosid's visibility and user acquisition efforts.

Brady Pejerrey, Chief Technology Officer, has over 20 years of experience in computer programming. He oversees the architectural design and implementation of Loosid's app, ensuring it meets high-quality standards and user expectations.

Rafael Palma, Head of Development, has more than a decade of experience leading mobile development teams. His high-quality standards are crucial for maintaining the app's performance and reliability.

Kelly Johns (KJ), Head of Growth Marketing, has 26 years of experience in digital marketing. She has transformed startups and created successful apps with millions of users. Her expertise in organic growth and user engagement is vital for scaling Loosid's user base.

Edmealem Tesfaye, Head of UI/UX, is responsible for all web and mobile design aspects. His role is critical for ensuring a seamless user experience, which is essential for user retention and satisfaction.

The team's collective experience aligns well with Loosid's goals of expanding its user base, enhancing user engagement, and providing comprehensive support for sobriety and recovery. However, as the company scales, it may benefit from additional expertise in areas such as large-scale marketing, data analytics, and financial management to achieve its future milestones.

Next Section: Differentiation

Differentiation

Loosid differentiates itself in the market through its comprehensive focus on sobriety and support for individuals recovering from alcohol abuse. Key competitors include Sober Grid and SoberTool. Both competitors offer similar services but differ in scope and features.

Sober Grid is a social networking platform specifically designed for individuals in recovery. It provides a community for users to connect, share experiences, and offer support. Sober Grid also offers a GPS locator to find nearby sober friends and support groups. While it has a strong community aspect, its feature set is not as extensive as Loosid's, which includes treatment guides, daily sober tips, and a sobriety tracker.

SoberTool focuses on providing tools and resources for individuals in recovery. It offers daily motivational messages, a sobriety counter, and relapse prevention tools. SoberTool is more utility-focused compared to Loosid's broader social networking and community engagement approach. Loosid's comprehensive offerings, including sober dating and boozeless guides, provide a more rounded experience for users.

In terms of company size, Loosid has over 145,000 members, indicating a substantial user base. The platform also reports high engagement levels, with significant increases in premium feature interactions. While specific user numbers for Sober Grid and SoberTool are not readily available, Loosid's reported growth metrics suggest a competitive position in terms of user engagement and satisfaction.

Loosid targets a diverse demographic that includes individuals in recovery from alcohol abuse, those adopting a sober lifestyle, and members of the 'sober curious' movement. The platform appeals to a broad age range, particularly younger demographics like Gen Z, who are increasingly health-conscious and mindful of their alcohol consumption. The app's features, such as sober dating and community events, cater to users seeking both social connections and recovery support.

Loosid's differentiation lies in its comprehensive suite of features that address various aspects of sobriety and recovery. Its ability to offer a supportive community, practical resources, and engaging social features sets it apart from competitors. This holistic approach enhances its appeal to a wide range of users within the sobriety and recovery niche.

Next Section: Performance

Performance

Loosid has demonstrated significant growth over the past six months, particularly in its subscription revenue and user engagement metrics. The company reported a 455% increase in monthly subscription revenue, rising from $9.1k to $50.5k. Renewal revenue also saw a substantial increase of 355%, from $2.2k to $10.3k. Active subscriptions grew by 412%, from 431 to 2,208, reflecting strong user retention and acquisition efforts.

In addition to revenue growth, Loosid experienced a notable increase in user activity. Total purchases surged by 1,599%, from 287 to 4,877. Renewal purchases also grew by 882%, from 142 to 1,395. These figures indicate that users are finding value in the app's offerings and are willing to invest in premium features.

Engagement with premium features has also increased significantly. Total engagement rose by 184%, from 1,437 to 5,051, while the company's ad spend only increased by 62%. Specific premium feature interactions, such as Loosid flirts, superlikes, and bookmarks, also saw substantial growth, suggesting that users are actively utilizing and benefiting from the app's features.

Despite these positive indicators, Loosid faces financial challenges. The company's most recent monthly burn rate is $145k, and it has $486k in cash on hand. This burn rate suggests a limited runway, necessitating additional funding to sustain operations and support continued growth.

Loosid's user base and engagement metrics validate its value proposition and market demand. The company's ability to scale its subscription revenue and maintain high levels of user engagement will be critical to its long-term success. However, managing its burn rate and securing additional funding will be essential to sustain this growth trajectory.

Next Section: Risk

Risk

Investing in Loosid involves several specific risks that potential investors should carefully consider. One significant risk is the high revenue multiple of 535.13x based on its annual revenue of $59.8k. This multiple indicates that the company may be overvalued relative to its current revenue, posing a potential risk for investors seeking favorable deal terms.

Another risk factor is the company's current burn rate of $145k per month, which, given its cash balance of $486k, suggests a relatively low runway. This financial situation could pressure Loosid to secure additional funding quickly to sustain its operations and growth initiatives. Failure to do so could result in operational disruptions or delays in achieving key milestones.

Loosid operates in a highly competitive market with numerous established players, such as Facebook, Meetup, and Eventbrite, as well as direct competitors like Sober Grid, SoberTool, and Recovery Box. The competitive landscape requires significant marketing and customer acquisition investments to differentiate and capture market share. This competitive pressure could impact Loosid's ability to grow its user base and achieve sustainable revenue growth.

The company's founders are fully dedicated, which is a positive aspect. However, the presence of part-time founders or low founder ownership could be a concern for long-term commitment and alignment with investor interests. Ensuring that the founding team remains focused and incentivized is crucial for the company's success.

Lastly, Loosid is not considered a moonshot, meaning it does not have an extremely high-risk, high-reward profile. While this may appeal to more risk-averse investors, it also suggests that the company may not offer the exponential growth potential that some investors seek in startup investments.

Overall, while Loosid has shown promising growth indicators, these specific risks should be weighed carefully by potential investors when considering participation in the current funding round.

Next Section: Bullish Outlook

Bullish Outlook

Loosid has several factors that contribute to a bullish outlook. One of the key positive aspects is the significant market opportunity within the U.S. social networking app market, valued at $14.3 billion and growing at an annual rate of 22%. The rise of the 'sober curious' movement and increasing health consciousness among younger demographics provide a solid foundation for future growth.

Loosid's unique strengths include its comprehensive suite of features tailored specifically for individuals in recovery from alcohol abuse. This specialized focus differentiates it from general social networking platforms and more narrowly focused competitors like Sober Grid and SoberTool. The app's combination of community support, practical resources, and social features such as sober dating and events positions it well to capture and retain a dedicated user base.

Loosid has demonstrated impressive growth metrics, with a 455% increase in monthly subscription revenue and significant user engagement. The company's ability to attract and retain users is further evidenced by the 1599% increase in total purchases and 412% growth in active subscriptions. These figures indicate strong market demand and user satisfaction, which are critical for sustained revenue growth.

Financially, while the company faces challenges with its burn rate and runway, its recent revenue growth and high user engagement levels are positive indicators. If Loosid can secure additional funding to support its operations and growth initiatives, it could capitalize on the expanding market and increasing demand for sobriety-focused social networking.

Growth drivers for Loosid include leveraging emerging trends such as the increasing adoption of health-focused lifestyles and the demand for personalized and encrypted social networking apps. Expansion plans could involve targeting new markets within the broader health and wellness sector, further increasing its user base. Continued innovation in app features and user experience will also be essential for maintaining a competitive edge and driving growth.

In conclusion, Loosid's strong alignment with market trends, unique value proposition, impressive growth metrics, and experienced team present a compelling case for a bullish outlook. While there are financial and competitive challenges to navigate, the company's potential for significant growth and market impact is evident.

Next Section: Bearish Outlook

Bearish Outlook

Despite its promising growth and market alignment, Loosid faces several factors that contribute to a bearish outlook. One of the primary concerns is its high revenue multiple of 535.13x, which indicates a potential overvaluation relative to its current revenue. This high multiple suggests that the investment terms may be unfavorable compared to industry benchmarks, posing risks for investors seeking a reasonable valuation.

The company's most recent monthly burn rate of $145k, coupled with $486k in cash on hand, highlights significant financial constraints. This limited runway necessitates additional funding to sustain operations and growth initiatives. Failure to secure sufficient capital could lead to operational disruptions or delays in achieving key milestones, potentially hindering growth.

Loosid operates in a highly competitive market with established players such as Facebook, Meetup, and Eventbrite, as well as direct competitors like Sober Grid and SoberTool. The competitive pressure requires substantial marketing and customer acquisition investments to differentiate and capture market share. This competitive landscape could impact Loosid's ability to grow its user base and achieve sustainable revenue growth, particularly if larger players with more resources enter the niche sobriety space.

Another concern is market adoption risk. While the 'sober curious' movement is growing, it remains a niche segment within the broader social networking market. Loosid's ability to expand its customer base beyond this niche and achieve widespread adoption is uncertain. Limited market adoption could restrict the company's growth potential and revenue scalability.

From a technological perspective, Loosid must continually innovate to stay ahead of competitors and meet evolving user needs. Any stagnation in product development or failure to introduce new features could result in user attrition and loss of market relevance. Additionally, the company must navigate potential regulatory hurdles related to data privacy and security, which are critical in the social networking space.

In summary, Loosid's high revenue multiple, financial constraints, competitive pressures, market adoption risks, and the need for continuous innovation present significant challenges. These factors collectively contribute to a bearish outlook, suggesting potential obstacles that may hinder the company's growth and long-term success.

Next Section: Executive Summary

Executive Summary

Loosid is a sobriety-focused social networking app that connects individuals recovering from alcohol abuse disorders. Its primary customers are individuals in recovery or those adopting a sober lifestyle. The app offers various features, including treatment guides, daily sober tips, community support, and sober dating, addressing the isolation often experienced during recovery.

Loosid is raising funds through a SAFE with a valuation cap of $32 million. The company's financial health shows strong growth metrics, with a 455% increase in monthly subscription revenue and significant user engagement. However, the high revenue multiple of 535.13x suggests potential overvaluation. The company's burn rate of $145k per month and cash on hand of $486k indicate a limited runway, necessitating additional funding to sustain growth.

The U.S. social networking app market, valued at $14.3 billion with a 22% annual growth rate, provides a substantial opportunity for Loosid. The rise of the 'sober curious' movement and increasing health consciousness among younger demographics align well with Loosid's offerings. The company's comprehensive suite of features and focus on sobriety set it apart from competitors like Sober Grid and SoberTool, targeting a niche but growing market segment.

 Key risks include the high revenue multiple, limited runway, and competitive market landscape. However, the team's dedication and experience help mitigate some of these risks.

From a bullish perspective, Loosid's alignment with market trends, strong user growth, and comprehensive features position it well for future success. The company's ability to attract and retain users in the growing sober lifestyle movement is a significant advantage. Conversely, the bearish outlook highlights the potential overvaluation, financial constraints, and competitive pressures that could hinder growth.

Overall, Loosid presents a compelling investment opportunity, particularly for investors interested in the health and wellness sector. The company's growth potential, market alignment, and experienced team offer promising prospects. However, investors should carefully consider the financial risks and competitive landscape before committing to the investment.

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Company Funding & Growth

Funding history

Total Prior Capital Raised
$5,949,230
VC Backed?
No
Close Date Platform Valuation Total Raised Security Type Status Reg Type
04/30/2025 Wefunder $32,000,000 $1,132,121 SAFE Active RegCF / RegD 506(c)
04/29/2024 Wefunder $24,000,000 $1,237,115 SAFE Funded RegCF
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Growth Charts

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.

Valuation History

Price per Share History

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

Employee History

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Loosid on Wefunder 2024
Platform: Wefunder
Security Type: SAFE
Valuation: $32,000,000

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