Mate Fertility is raising funds on Wefunder at a $25 million valuation. While the company is addressing supply issues in the US fertility market and has shown promising growth, the valuation seems high. Mate Fertility generated $971,624 in revenue last year, resulting in a revenue multiple of approximately 25x. This multiple is relatively high for a pre-profit company in the healthcare industry. But given Mate Fertility's uniqueness and innovation, this slightly high valuation shouldn't be a blocker if investors believe that the company has a strong potential to grow.

The fertility services market represents a significant opportunity, with the US market valued at approximately $7.4 billion. Fertility services have become increasingly important as demographic trends, such as delayed childbearing due to professional or personal reasons and increasing rates of male and female infertility, drive demand. The market is projected to grow at a compound annual growth rate of 16.1%, further expanding the potential opportunity for companies in this sector.

Despite the high market potential, it is important to note that the fertility services industry is highly regulated. Companies operating in this space must adhere to many federal and state laws and regulations pertaining to areas such as patient safety, laboratory standards, and data privacy. These regulations create a high barrier to entry and can impact the speed at which companies can scale.

Moreover, the market is moderately competitive with the presence of established players. However, there is a distinct gap in the market, particularly in terms of accessibility and affordability of fertility services, which Mate Fertility aims to address. By partnering with experienced ObGyn surgeons to provide expert and - especially, affordable fertility care, Mate Fertility is positioning itself to capture a significant share of the market.

Finally, market acceptance of fertility services is high, reflecting societal and cultural shifts toward accepting and normalizing fertility treatments. This benefits companies like Mate Fertility, suggesting a ready market for its services.

In conclusion, Mate Fertility operates in a growing and high-potential market. While regulatory and competitive pressures are considerations, the company's targeted approach to tackling accessibility and affordability issues in the fertility services market positions it well for future growth.

Mate Fertility was founded by Gabriel Bogner, the company's CEO. Bogner's personal story, which he shares in his Founder Profile, made him passionate about the fertility space and dedicated to making the path to parenthood accessible and achievable for individuals and couples. While a first-time founder, Bogner brings marketing, sales, and business skills. Bogner holds a bachelor's in business administration from the University of California, Berkeley.

Bogner appointed Traci Keen as the company's CEO at the beginning of 2022. Keen comes to Mate Fertility with a career in finance.

The team relies on Sara Vaughn, the company's medical advisor, to direct the company on the right path from a medical perspective.

Last but not least, Gary Kliegman, COO, completes the team by bringing his experience from the healthcare industry. Kliegman was the COO of Candid for four years, a company focused on orthodontic healthcare.

While it can seem worrying that the only embryologist on the team only stands in an advisory role, Mate Fertility's early successful onboarding of three partners and two to come demonstrated that this dynamic works for the company. However, investors can worry that the company could need to add a full-time fertility specialist to the team to accelerate its growth and earn credibility.

Mate Fertility differentiates itself in the US fertility services market by focusing on accessibility, affordability, and expert care. The company helps ObGyn launch its fertility service at a more affordable price for customers than competitive services. This combination of expertise and affordability sets Mate Fertility apart from many established solutions in the market.

Indeed, Mate Fertility clinics charge $8,900 for a complete cycle of IVF Freeze, while competition typically ranges between $12,000 and $25,000.

One of the critical differentiators for Mate Fertility is its focus on accessibility. The company recognizes the challenges and supply issues in the US fertility market and aims to make parenthood more accessible and achievable for individuals and couples. By offering expert care and affordable pricing, Mate Fertility aims to remove some of the barriers to entry that many people face when seeking fertility services. The company also participates in increasing access to fertility services in more rural areas of the country. 

Mate Fertility has already demonstrated promising results, with three locations and an overall pregnancy rate that is 20% above the national average. Per the founder, Gabriel Bohner, the company has better results than its competition thanks to the collaborative nature of its model. In legacy fertility clinics, there's usually only one Reproductive Endocrinology and Infertility (REI) practician making decisions. Because it is training OBGYNs, there is more feedback, learning, discussion, and team collaboration. No medication decision, adjustment, or protocol is decided upon without thorough discussion by at least two doctors and many times more. Mate Fertility's embryology labs are also new and state-of-the-art, while many legacy labs were built decades ago.

Mate Fertility has demonstrated strong financial performance and growth in the past year. The company generated $971,624 in annual revenue in 2022, a good change from 2021's $291,191. Mate Fertility made $600,000 in revenue in the first six months of the year, already showing growth compared to last year. It expects to reach $2.7 million in revenue in 2023.

Mate Fertility already helped three OB-GYN practices develop and launch their clinics; two more are currently under construction.

The company charges a $250,000 entry fee and collects 30% of top-line fertility revenue. OB-GYNs usually need 12 patients a month to break even and get, most of the time, 20 patients, bringing them an additional line of revenue and the opportunity to follow their patients on their fertility journey.

This unique approach has resonated with customers, as evidenced by their increasing revenue and overall pregnancy rate, which is 20% above the national average.

Mate Fertility has a cash on hand of $1 million and burns $275,000 a month. Its raise will be essential to sustain its growth.

Investing in Mate Fertility carries some risks that potential investors should consider.

Mate Fertility operates in a highly regulated industry with high market approval or license regulations. Compliance with these regulations is crucial for the company's continued operations and growth.

Mate Fertility is growing and needs more time to scale production and sales. This can introduce uncertainties and challenges in meeting demand and expanding the business.

Furthermore, the company currently has negative net income, indicating potential financial challenges and the need for additional funding. The monthly burn rate also suggests ongoing cash burn, which may require continuous capital infusion.

While Mate Fertility is addressing supply issues in the fertility market, it faces competition in a moderately competitive landscape. This competition could impact the company's market share and growth potential.

Mate Fertility is well-positioned to disrupt the US fertility market by addressing supply issues and making fertility care accessible to a wider audience. The company's unique approach of supporting OBGYN's willingness to open fertility clinics sets it apart from traditional fertility services. By upskilling OBGYN, Mate Fertility can provide expert and affordable fertility care, democratizing access to individuals and couples nationwide. The company's partner can open new markets in traditionally underserved areas.

Mate Fertility has already demonstrated promising growth with three locations and a pregnancy rate that surpasses the national average by 20%. It is opening two new locations that should be running by the end of the year. 

The US fertility market presents a high market potential due to the increasing amount of people trying to get pregnant in their thirties and the overall surge of infertility problems in the population. Mate Fertility's scalable business model is well-positioned to capture a significant share of this market.

While addressing a significant market need, Mate Fertility faces challenges that could hinder its growth and profitability. The company is operating at a significant loss, with a monthly burn rate of $275,000 and cash on hand of only $1 million. This raises concerns about its financial stability and ability to survive difficult fundraising times. 

Although Mate Fertility has shown growth in revenue year over year, it is important to note that the company is still in its early stages, having been founded in 2021. Whether Mate Fertility can sustain its growth trajectory and convert more OBGYNs to open fertility clinics remains to be seen.

Mate Fertility is a healthcare startup focused on providing affordable and accessible fertility care to prospective parents across the U.S. The company helps OBGYN launch and operate its own expert and reasonable fertility care. Despite being a relatively new player in the U.S. fertility services market, Mate Fertility has already seen impressive growth, with an annual revenue of $971,624  in 2022. The company operates in three locations, boasting a pregnancy rate 20% above the national average.

However, the company's financial health raises some concerns. With a net income of -$3,013,536 in 2022, the company has yet to reach profitability and has a high monthly burn rate of $251,128. Despite these challenges, the company's potential in the high-growth fertility services market cannot be overlooked.

Given the company's strong growth, dedicated founding team, and the high potential of the fertility services market, Mate Fertility presents an interesting investment opportunity. However, potential investors should consider the company's financial health and the competitive landscape of the fertility services market. The company's current crowdfunding campaign aims to raise funds for new hires, training, IT, and marketing, focusing on growth and market expansion.