Sholder

Sholder

Early Stage

Skilled mental & emotional support for high-burnout employees

Skilled mental & emotional support for high-burnout employees

Overview

Raised this Round: Raised: $61,611

Total Commitments ($USD)

Platform

Wefunder

Start Date

12/07/2023

Close Date

04/29/2024

Min. Goal
$50,000
Max. Goal
$250,000
Min. Investment

$100

Security Type

SAFE

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$6,500,000

Valuation Cap

$7,500,000

Discount

0%

Year Founded

2021

Industry

Healthcare & Pharmaceuticals

Tech Sector

HealthTech

Distribution Model

B2B/B2C

Margin

High

Capital Intensity

Low

Location

Boulder, Colorado

Business Type

High Growth

Sholder, with a valuation of $7.5 million, is raising funds on Wefunder. The company has developed a platform to provide skilled emotional and mental support for high-burnout employees. Sholder offers expert-crafted curriculum, training, and transformative support to employees through organic relationships and also helps them earn per hour while making an impact. The platform has served 2,900 lives and has $2.5 million in active sales pipeline. Rett Kearbey, Austin Baker, and Mark Dacy founded Sholder in April 2021. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $250,000. The campaign proceeds will be used for marketing and sales, customer success, product and technology, provider training and community, and legal expenses.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$13,096

$0

COGS

$22,039

$0

Tax

$0

$0

 

 

Net Income

$-347,829

$-49,680

Summary Balance Sheet

FY 2022 FY 2021

Cash

$47,164

$63,607

Accounts Receivable

$0

$0

Total Assets

$51,701

$63,607

Short-Term Debt

$22,405

$80

Long-Term Debt

$411,667

$108,333

Total Liabilities

$434,072

$108,413

Financials as of: 12/07/2023
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Synopsis

Employee burnout is a growing concern for businesses worldwide. According to a survey by Deloitte, 77% of professionals have experienced burnout at their current job, with more than half reporting more than one occurrence. Burnout can decrease productivity, absenteeism, and higher employee turnover. In the U.S. alone, workplace stress accounts for up to $190 billion in annual healthcare costs.

Sholder aims to address this issue by providing skilled emotional and mental support for high-burnout employees. The company's platform offers employees expert-crafted curriculum, training, and transformative support through organic relationships. In addition, the platform allows employees to earn per hour while making an impact, serving a dual purpose of mental health support and financial gain.

Since its inception, Sholder has served 2,900 lives and has an active sales pipeline of $2.5 million. This demonstrates a clear demand for the company's services and its potential for growth. The funds raised in the current campaign will be used to expand the company's reach further and improve its offerings, focusing on marketing and sales, customer success, product and technology, provider training and community, and legal expenses.

With the increasing focus on employee wellbeing and mental health, Sholder is well-positioned to significantly impact this space. The company's innovative approach to addressing employee burnout could transform how businesses support their employees' mental health, leading to happier, healthier, and more productive workforces.

Next Section: Price

Price

Sholder is raising funds on Wefunder through SAFE at a valuation cap of $7.5 million. This valuation is high compared to the small annual revenue of $13,096 and the lack of differentiation of the product. 

 

Next Section: Market

Market

Sholder operates within the mental health apps market, a sector experiencing substantial growth due to increasing recognition of the importance of mental health, particularly given the recent global pandemic's impact. Valued at approximately $1.7 billion, this market is projected to grow at a compound annual growth rate of 13.2%. This surge reflects the mounting demand for accessible and convenient mental health support, particularly for high-burnout employees, a demographic that Sholder specifically targets.

The market's potential is further underscored by the fact that mental health issues, such as stress and burnout, have been identified as a significant factor affecting employee productivity and overall business performance. As a result, businesses are increasingly investing in mental health support for their employees, a trend that Sholder can capitalize on with its B2B and B2C distribution model.

Despite the market's potential, Sholder faces fierce competition from established players like Talkspace, BetterHelp, and Amwell. These companies already have significant market presence and user bases. To succeed, Sholder will need to differentiate itself by proving the effectiveness of its unique approach to mental well-being, leveraging its expert-crafted curriculum, training, and transformative support.

Given the nature of its services, regulatory requirements are relatively low, easing market entry and growth. However, user trust and acceptance are critical in this sector, requiring Sholder to demonstrate its platform's effectiveness and safety consistently. Overall, given the increasing demand for mental health support and with the right strategies, Sholder has a high potential for growth in this market.

Next Section: Team

Team

Sholder is led by founder and CEO Rett Kearby. He has been leading the company for close to 3 years without previous experience in the mental health industry. Kearby brings a fresh perspective to the healthcare and pharmaceuticals sector. He has been a principal at OZA where he provides growth consulting services. While this gives him experience in growing companies, having a side venture can be distracting for a founder. Kearby may not be dedicated enough to lead Sholder successfully.

Next Section: Differentiation

Differentiation

Sholder aims to differentiate itself in the competitive mental health app market by providing skilled emotional and mental support tailored to high-burnout employees. The company offers a platform that connects users with trained and qualified "sholders" who provide expert-crafted curriculum, training, and transformative support.

One of Sholder's key differentiators is its focus on organic relationships, allowing users to develop a meaningful connection with their sholders. This personalized approach sets Sholder apart from other mental health apps that may rely solely on automated or algorithm-based interactions.

Sholder has already achieved significant traction, with over 150 people trained, 40+ qualified sholders available for paid bookings, and a 97% satisfaction rate from users. The platform has served 2,900 lives and has a promising $2.5 million in active sales pipeline.

Sholder operates in the highly competitive mental health app market. This market is crowded, and Sholder competes with platforms like Talkspace, BetterHelp, and Amwell, which offer online therapy and counseling services. Even if every platform has a different offering, the offering may appear similar to customers, leaving Sholder in an unfavorable position.

As the company grows, Sholder must invest in marketing and sales efforts to expand its user base and differentiate itself from other mental health apps. Establishing strategic partnerships and continuously enhancing its platform's features and user experience will be crucial for Sholder's success in the competitive mental health market.

Next Section: Performance

Performance

Sholder is a healthcare and pharmaceutical company that has developed a platform to provide skilled emotional and mental support for high-burnout employees. The company offers employees expert-crafted curriculum, training, and transformative support through organic relationships. Sholder is early in its traction, with only 150 people trained and 40 sholders qualified and available for paid bookings. The service has received a high satisfaction rate, with 97% of users reporting satisfaction.

Financially, Sholder has a healthy cash position, with $36,560 on hand as of the most recent reporting period. The company has also raised $548,000 in prior funding rounds, indicating investor confidence in its business model and growth potential. Sholder has paying customers and generates annual revenue of $13,096. While the revenue growth has been flat, the company has a strong active sales pipeline of $2.5 million, indicating potential for future revenue growth.

Next Section: Risk

Risk

Investing in Sholder carries several risks as it aims to provide skilled emotional and mental support for high-burnout employees.

Sholder operates in an extremely competitive market, with direct competitors such as Talkspace, BetterHelp, and Amwell. These competitors have established market presence, brand recognition, and larger customer bases. This competition risks Sholder's ability to attract and retain customers in an already crowded marketplace.

Additionally, Sholder is in the early stages of development and has not yet achieved profitability. The company's revenue growth has been stagnant and has a negative net income. This indicates that Sholder may struggle to generate sufficient revenue to cover its expenses and achieve profitability in the near term. The company's low cash and high burn rate highlight its financial challenges.

Lastly, Sholder operates in a market with high barriers to entry. Establishing trust and credibility in the mental health industry, building a strong network of providers, and overcoming the stigma associated with mental health services can be challenging. These barriers to entry may slow down Sholder's growth and hinder its ability to gain market share.

Next Section: Bullish Outlook

Bullish Outlook

Sholder is poised to disrupt the mental health industry with its innovative platform that provides skilled emotional and mental support for high-burnout employees. The company's unique approach combines expert-crafted curriculum, training, and transformative support to empower individuals to observe, heal, and reframe their life stories. Sholder is redefining how we think about and address mental health by offering this holistic approach to mental well-being.

While Sholder currently does not have any partnerships, its organic relationships with employees and focus on providing meaningful support have helped the company establish a strong user base. Sholder is positioned to make a meaningful impact in the corporate wellness space by directly addressing the needs of high-burnout employees.

Although Sholder is in the pre-profit phase, its high-margin business model and low capital intensity level indicate the potential for profitability as it continues to scale. The funds raised from the current crowdfunding campaign will fuel the company's marketing and sales efforts, customer success initiatives, product and technology enhancements, provider training and community building, and legal expenses.

In conclusion, Sholder's innovative platform, strong market potential, and commitment to providing skilled emotional and mental support position the company for growth and success. With a dedicated team and a mission-driven approach, Sholder is well-positioned to address the increasing demand for mental health support in the workplace and make a positive difference in the lives of high-burnout employees.

Next Section: Bearish Outlook

Bearish Outlook

Despite its mission to provide skilled emotional and mental support for high-burnout employees, Sholder faces significant challenges in the highly competitive healthcare and pharmaceutical industry. The US mental health app market is already saturated with established players like Talkspace, BetterHelp, and Amwell. These competitors have a strong brand presence, widespread user adoption, and extensive marketing resources, making it difficult for Sholder to gain market share.

Additionally, Sholder's valuation of $7.5 million may be considered overvalued, given its current financial performance and market competition. Investors may question whether the company's valuation accurately reflects its potential for success in the mental health app market.

Lastly, the founders' lack of dedication raises concerns about the long-term commitment and vision for Sholder. Without dedicated founders driving the company's growth and success, it may face challenges in executing its business plan and effectively competing in the industry.

While Sholder's platform may offer unique features and benefits, the company faces significant barriers to entry, intense competition, stagnant revenue growth, and potential overvaluation. These factors suggest a bearish outlook for Sholder's future mental health app market prospects.

Next Section: Executive Summary

Executive Summary

Sholder, Inc. is a mental health services platform that provides skilled emotional and mental support for high-burnout employees. The company's approach involves offering employees expert-crafted curriculum, training, and transformative support through organic relationships. This unique approach not only aids in employee mental health but also allows employees to earn per hour while making an impact. The platform has served 2,900 lives and has a $2.5 million active sales pipeline.

Despite being in the early stages of development, Sholder has shown promising traction with over 150 people trained and 40+ sholders qualified and available for paid bookings. The platform has also received a 97% satisfaction rate from its users, indicating a high level of user satisfaction and a promising potential for growth.

However, Sholder operates in a highly competitive market, with major competitors including Talkspace, BetterHelp, and Amwell. These competitors have substantial resources and established market positions, which could be a significant challenge for Sholder. Despite being valued at $7.5 million, the company's annual revenue is currently at $13,096, indicating a high revenue multiple and potential overvaluation.

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Sholder on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $7,500,000

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