Thrivelab
Thrivelab, with a valuation of $20 million, is raising funds on Wefunder. The company has developed a concierge hormone health program to help people with hormonal imbalances. Thrivelab’s platform offers self-assessment for patients to onboard, followed by an initial consult and a patent-pending blend of treatment protocols, nutraceuticals, and technology. The business works on a recurring revenue model and has reported a 206% year-over-year revenue growth with 63% gross margins. Joshua Host, Dr. Nayan Patel, Dr. Ryan Jones, and Rahula Kochar founded Thrivelab in July 2020. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $615,850. The campaign proceeds will be used for marketing, product improvement, IT, and the launch of new channels.
Investment Overview
Raised: $73,850
Deal Terms
Company & Team
Company
- Year Founded
- 2020
- Industry
- Healthcare & Pharmaceuticals
- Tech Sector
- Distribution Model
- B2C
- Margin
- Medium
- Capital Intensity
- Low
Financials
- Revenue +193% YoY
- $5,370,196
- Monthly Burn
- $66,000
-
Runway
- 0.5 months
- Gross Margin
- 60%
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Synopsis
72% of Americans between the ages of 35-65 suffer from hormone imbalance, yet just 12% find treatment due to high cost and lack of access. Hormonal imbalances can lead to various health concerns such as fatigue, mood swings, and weight gain. These issues are common as individuals age and can significantly impact their quality of life. Traditional healthcare solutions often fail to provide personalized and accessible treatment options, leaving many individuals without effective care. Thrivelab solves this problem by offering personalized hormone replacement therapy programs supported by board-certified providers accessible via telehealth. Thrivelab accepts all major insurance for these treatments and also just recently launched a primary care service for existing patients.
Price
Thrivelab is offering Preferred Equity in its current funding round. The pre-money valuation for this round is set at $20 million, with shares priced at $5,477 each.
Preferred Equity offers certain advantages over Common Equity, including priority in dividend payments and liquidation preferences. For investors, this means a higher claim on the company's assets in the event of a liquidation, providing an added layer of security. Additionally, Preferred Equity holders often have voting rights and other protective provisions, which can be advantageous in influencing company decisions.
In terms of exit potential, Thrivelab operates in a competitive and high-growth market. To achieve a 10X return for investors, the company would need to be valued at approximately $200 million at the time of exit, not accounting for dilution. With an annual revenue of $5.4 million and a current revenue multiple of 3.7x, Thrivelab would need to significantly scale its operations and customer base to reach this valuation.
Market
The U.S. hormone replacement therapy (HRT) market, which Thrivelab targets, is valued at approximately $9 billion and is growing at an annual rate of 6.2%. This growth is driven by an aging population, increased awareness of hormonal health, and advancements in medical technology that make these therapies more accessible and effective.
Key market drivers include the rising incidence of hormonal imbalances due to aging and lifestyle factors, as well as a growing acceptance of bioidentical hormone replacement therapies among consumers. Additionally, the increased use of telehealth services has made it easier for patients to access personalized healthcare solutions, aligning well with Thrivelab's telehealth-based model.
Several trends are impacting the HRT market. The shift towards personalized medicine is creating demand for customized treatment plans, which Thrivelab offers through its concierge hormone health program. This trend toward tailored healthcare solutions can positively impact Thrivelab's growth by aligning with consumer preferences for individualized care. However, the market is also seeing heightened competition from established healthcare providers and new entrants, which could pose challenges for customer acquisition and retention.
Team
Thrivelab is led by Co-Founder and CEO Joshua Host, who has held numerous executive positions at companies like Urban Village, Antiresort,, and My Loan Host. As Principal at Urban Village, he developed and sold four residential and commercial real estate projects. He holds an MBA from Pepperdine.
Dr. Nayan Patel serves as Chief Clinical Officer of Thrivelab. He has been running a pharmacy specializing in hormone therapy for the last 25+ years called Central Drugs Compounding Pharmacies. He is a Doctor of Pharmacy (PharmD) from University of Southern California and has served over 250,000+ patients with hormone health plans.
Rahula Kocha seres as CTO and also serves as CEO of iCelerate, an IT consulting company. He is also Founder and CEO of West Valley Endocrinology, Diabetes, and Metabolism Center, a leading Phoenix-based Endocrinology Center. He holds a MS/BS in Computer Science & Mathematics from Northern Illinois University.
Differentiation
Within the hormone replacement therapy (HRT) market, Thrivelab faces competition from several notable players. Two prominent competitors are BodyLogicMD and Everlywell. Each offers distinct services and has established a significant presence in the market.
BodyLogicMD is a well-established company specializing in bioidentical hormone replacement therapy. With a larger market presence, BodyLogicMD offers a comprehensive range of HRT services through a network of affiliated practitioners. In terms of company size, BodyLogicMD is significantly larger than Thrivelab, with a broader customer base and more extensive resources. However, BodyLogicMD’s services are often more expensive, reflecting its extensive offerings and established reputation.
Everlywell, another competitor, provides at-home health testing kits, including hormone testing. While Everlywell's primary focus is on diagnostic testing rather than treatment, it offers a convenient and accessible entry point for consumers interested in understanding their hormonal health. Compared to Thrivelab, Everlywell has a wider range of health testing products and a larger customer base. However, Everlywell does not provide the same level of personalized treatment and ongoing telehealth support that Thrivelab offers, positioning Thrivelab uniquely in the market.
Thrivelab differentiates itself through its concierge hormone health program, which combines self-assessment tools, initial consultations, and a patent-pending blend of treatment protocols, nutraceuticals, and technology. This approach offers a higher level of personalization and ongoing support compared to competitors.
Performance
Thrivelab has demonstrated significant growth in recent periods. The company reported a year-over-year revenue growth of 206%, increasing from $1.8 million to $5.4 million. This substantial increase indicates a strong market demand for its hormone health solutions and effective execution of its business model.
Financially, Thrivelab has a most recent monthly burn rate of $66k and cash on hand of $32k. This limited cash runway emphasizes the importance of the current fundraising round to maintain operations and support future growth initiatives.
The company operates with a recurring revenue model, achieving an annual recurring revenue (ARR) exceeding $6 million. This model contributes to financial stability and predictability, with a reported gross margin of 63%. High gross margins suggest efficient cost management and a potentially scalable business model.
Despite the impressive revenue growth, Thrivelab reported a net income loss of $2.5 million for the most recent fiscal year, compared to a loss of $3.5 million in the prior fiscal year. While the net loss has decreased, indicating improved financial management, the company remains unprofitable and will need continued capital infusion to bridge the gap to profitability.
Thrivelab's short-term debt stands at $4.9 million, which poses a financial obligation that must be managed carefully to avoid liquidity issues. The company's ability to service this debt while continuing to invest in growth initiatives will be crucial for its long-term success.
Risk
Thrivelab faces several specific risks that investors should consider. One notable risk is the company's current financial situation, characterized by a low runway. With cash and cash equivalents of $32k and a monthly burn rate of $66k, Thrivelab has less than one month of operational runway without additional funding. This highlights the urgency for the current raise to sustain operations and growth.
Additionally, the company has part-time founders, which may impact the focus and speed at which strategic goals are achieved. Part-time involvement from key leadership can pose challenges in execution and decision-making processes, potentially delaying critical initiatives necessary for scaling the business.
The company has also reported significant short-term debt of $4.9 million. This debt level can strain the company’s financial resources and limit its flexibility to invest in growth opportunities. Managing and servicing this debt requires careful financial planning and may necessitate further funding rounds, which could result in dilution for existing investors.
Lastly, Thrivelab operates under high barriers to entry due to the nature of the healthcare industry, which requires compliance with stringent regulations and standards. Any failure to adhere to these regulations could result in legal issues, fines, or operational shutdowns, posing a significant risk to the company’s continuity and reputation.
Bullish Outlook
Several factors contribute to a bullish outlook for Thrivelab. The U.S. hormone replacement therapy market is valued at approximately $9 billion, growing annually at 6.2%. This large and expanding market provides substantial opportunities for Thrivelab to capture a significant share, particularly with its focus on personalized, telehealth-based hormone health solutions.
Thrivelab’s impressive revenue growth is a positive indicator. The company reported a 206% year-over-year increase, rising from $1.8 million to $5.4 million. High gross margins of 63% further indicate effective cost management and the potential for scalable operations. This strong financial performance underscores the market demand for Thrivelab's services and its ability to meet that demand efficiently.
Another key factor is the alignment with emerging trends in personalized medicine and telehealth. As consumers increasingly seek tailored healthcare solutions that can be accessed remotely, Thrivelab’s platform is well-positioned to leverage these trends. The convenience and accessibility of telehealth services attract tech-savvy and health-conscious individuals, aligning with the company's target demographic.
Financially, Thrivelab’s recurring revenue model with an annual recurring revenue (ARR) exceeding $6 million provides stability and predictability. This model, coupled with a 4-month customer acquisition cost (CAC) payback and a 95% subscription retention rate, indicates a strong business foundation. These metrics suggest that Thrivelab can efficiently acquire and retain customers, contributing to long-term revenue growth.
Bearish Outlook
Several factors contribute to a bearish outlook for Thrivelab. One primary concern is the company's financial health. With a cash on hand of $32k and a monthly burn rate of $66k, Thrivelab has less than one month of operational runway. This financial strain increases the urgency for securing additional funding and may lead to unfavorable investment terms or significant dilution for existing investors.
The competitive landscape poses another challenge. Thrivelab operates in a highly competitive market including well-established players like BodyLogicMD and Everlywell. These competitors have broader customer bases, more extensive resources, and well-established reputations, making it difficult for Thrivelab to capture significant market share. The high level of competition could lead to market saturation and pricing pressures, further challenging Thrivelab's ability to differentiate its offerings and maintain or grow its customer base.
The company also faces risks related to its leadership team. The part-time involvement of key founders raises concerns about the focus and speed at which strategic goals can be achieved. Effective execution and decision-making processes are crucial for scaling operations, and part-time involvement may delay critical initiatives necessary for growth. Additionally, gaps in the team, particularly in areas such as marketing, could hinder the company's ability to effectively promote its services.
Executive Summary
72% of Americans between the ages of 35-65 suffer from hormone imbalance, yet just 12% find treatment due to high cost and lack of access. Hormonal imbalances can lead to various health concerns such as fatigue, mood swings, and weight gain. These issues are common as individuals age and can significantly impact their quality of life. Traditional healthcare solutions often fail to provide personalized and accessible treatment options, leaving many individuals without effective care. Thrivelab solves this problem by offering personalized hormone replacement therapy programs supported by board-certified providers accessible via telehealth. Thrivelab accepts all major insurance for these treatments and also just recently launched a primary care service for existing patients.
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Company Funding & Growth
Funding history
- Total Prior Capital Raised
- $5,157,353
- VC Backed?
- No
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.