Everlywell – At-Home Health Test
DEAL
EPISODE SUMMARY
🕓 Air Date: November 26, 2017
Asking For:
$1,000,000 for 5%
Investor:
Lori Greiner
Deal:
$1,000,000 for 5%
PRODUCT SUMMARY
EverlyWell offers at-home lab testing kits, providing convenient and understandable results for a variety of health tests, from food intolerance to metabolism testing.
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Background Story
Julia Cheek, the founder of EverlyWell, started the company in Austin, Texas, driven by her personal experience of struggling with a hormone imbalance. Frustrated with the traditional, time-consuming, and costly lab testing process, she envisioned a better solution.
Julia, with a background in economics and psychology and an MBA from Harvard, identified the need for accessible and transparent at-home health testing. The company aimed to simplify the process, offering customers the ability to purchase kits online, collect samples at home, and receive easy-to-understand results, all while avoiding unexpected lab bills.
The Product
EverlyWell’s testing process involves purchasing a kit online, collecting samples at home (usually through a small finger-prick blood sample), and sending it to one of their certified partner labs.
Results, approved by board-certified physicians, are delivered online in a few days, featuring easy-to-read graphs and custom content. The tests cover a range of health concerns, with prices varying from $69 to $399.
EverlyWell’s focus on accessibility, convenience, and transparency sets it apart, and the company plans to expand its offerings, including genomics products through a partnership with Helix.
How It Went
The company’s position before Shark Tank
EverlyWell, despite being cash-pay-only and not in network with insurance providers, demonstrated impressive growth. Within a year of the beta launch, they sold $2.5 million of products, with a $400,000-a-month run rate and a 20% average monthly growth. The forecast projected $5 million in sales for the current year, increasing to $12.3 million the following year. Julia disclosed a $5 million funding raised to date, with a last valuation at a $15 million cap. The company’s current burn rate is $150,000 per month.
The Negotiations:
While Lori Greiner offered a $1 million line of credit at 8% interest for 5% equity, the other Sharks expressed concerns about the competitive landscape and the substantial capital required for success. Mark Cuban, Rohan Oza, and Barbara Corcoran opted out due to concerns about ongoing development costs, competition, and the need for substantial funding.
Robert Herjavec also expressed reservations about the cost of doing business in the healthcare space in the U.S. Ultimately, Julia accepted Lori’s offer, emphasizing the value of Lori’s expertise in branding and understanding EverlyWell’s target consumer base, primarily women.
