Even before the COVID-19 pandemic, the global hand sanitizer market was projected to grow 12.8% between 2019 and 2027 to almost $4 billion. Then, of course, the pandemic hit. Hand sanitizer began flying off the shelves. Demand increased by over 1,400% between December and January alone. 

Purell — the household-name hand sanitizer brand that controls at least 25% of the U.S. market — couldn’t keep up with coronavirus demand. A global shortage led to price hikes on Amazon. Enterprising capitalists saw an opportunity, with one man hoarding over 17,000 bottles before donating them to avoid price gouging charges. 

In short, hand sanitizer is one of the most valuable commodities in a global pandemic, along with sanitary wipes, masks, and other germ-preventing products. Given the sudden spike in demand for these goods — which major manufacturers were unprepared to meet — there is an opportunity for new entrants to profit significantly.

SurelyWell is a sanitization products company offering hand sanitizers, sanitary wipes, and masks to businesses, government entities, and consumers. SurelyWell was founded just as the coronavirus pandemic began. It has already generated $9 million in revenue over the last four months, primarily from B2B contracts. The company partnered with 7Eleven, MGM, the US Postal Service, and other large organizations to provide sanitary products to their employees. 

SurelyWell believes that its competitive advantage is in unit economics. By reducing corporate overhead and aggressively pursuing cost-cutting manufacturing contracts, the company has steadily decreased the cost of each hand sanitizer bottle produced over the past four months. It has also maintained healthy margins on goods sold. The company manufactures the majority — if not all — of its products in US-based, FDA-approved manufacturing facilities.

SurelyWell is led by two young founders with nontraditional entrepreneurial backgrounds. Head of Strategic Partnerships Mike Ho has founded several businesses ranging from virtual gaming to international luxury vehicle trading. Asher Genoot, SurelyWell’s Head of Strategy and Operations, is also an entrepreneur with at least two education companies under his belt.

Ho and Genoot are joined by three slightly more senior executives: Head of Sales James Duerbeck, Head of Government Relations Norman Smith, and Head of Brand and Marketing Ayah Karadsheh. Duerbeck is a longtime salesman with entrepreneurial experience at the head of an import/export business and automotive performance shop. Smith is an Army veteran and currently leads a science and technology consulting company — he works for SurelyWell part time. Karadsheh graduated from the University of San Diego in 2016 and subsequently worked at digital marketing and public relations agencies before transitioning to SurelyWell.

SurelyWell began as a B2B company selling products wholesale to corporations and government agencies in desperate need of hand sanitizer. It plans to transition its focus onto DTC/B2C sales more equally moving forward. The company just launched a consumer-facing website that rivals many existing hand sanitizer brands and plans to spend a good portion of raised capital toward additional marketing campaigns. 

Beyond expanding into consumer sales, SurelyWell’s plans for the long-term future are unclear. The remainder of proceeds from this crowdfunding campaign will be devoted toward hiring sales and marketing staff and developing additional products. It seems that the company’s ultimate goal is to win significant B2B contracts while also selling consumer hand sanitizer, thereby becoming a household name in sanitary products.

SurelyWell has generated impressive traction during only a few months of operation. It is poised to continue closing major deals as the pandemic necessitates a never-ending supply of hand sanitizer. On the other hand, the company is not clearly differentiated from other hand sanitizer manufacturers and has no clear plan for moving beyond the COVID-19 boom. 

Undeniably, $9 million in revenue in four months is an unusually strong signal of success. It indicates that SurelyWell has moved quickly to build a manufacturing pipeline and close deals with buyers. The fact that SurelyWell has already closed deals with the likes of 7Eleven and MGM — and has a foot in the door for extended government contracts thanks to its relationship with the Postal Service — indicates that the company has much more B2B selling potential that could continue to inflate revenues. Back-of-the-envelope calculations that estimate the need for increased hand sanitizer supply to persist for at least 12 months point to over $25 million in revenue for SurelyWell for year one — and that’s if the company experiences zero growth from its current performance. 

On the other hand, though, investors should be wary of several potential risks. Beyond the traction that it has established, SurelyWell does not offer a unique value proposition over other hand sanitizer brands. While companies like Purell have faltered during the pandemic, they most likely have the resources to recover and continue to dominate the market in the long-term. SurelyWell’s long-term future is unclear. Exit potential may be limited for the same reason: SurelyWell does not seem to have intellectual property or other enticing assets, so players like Purell would likely attempt to outperform them in the market rather than acquiring them. Moreover, SurelyWell’s founding team is young and lacks many of the standard markers of startup founder success (experience at leading companies, formal education, etc.). For these reasons, the company feels a bit more like a quick money-making venture than a business that’s building long-term value. 

SurelyWell offers conflicting signals to prospective investors. It is a very early-stage company generating impressive revenue, but it also seems to lack the long-term vision to build a business of exceptional worth. Therefore, SurelyWell is a Neutral deal.