Microgel Supplement Manufacturer Poised for Breakout in 2021
Healthycell, a supplement company based on a proprietary delivery system, has announced a major distribution deal that will take it into the new year.
Healthycell
Nutritional Supplements, Evolved.
Mount Pleasant, SC
Consumer Products
E-Commerce
Healthycell brings you nutritional supplements, evolved. Their products use patent-pending MICROGEL™ technology to deliver nutrients you can absorb and results you can measure in a pill-free experience you'll love. By solving the challenges of traditional tablets, capsules, and powders, Healthycell is starting to change the way 220 million people take supplements every day in the U.S., especially the 40% of people who have difficulty swallowing pills.
$253,539
raised
259
Investors
$15.4M
Valuation
$0.29
Price per Share
$100.63
Min. Investment
Units
Security Type
Equity
Offering Type
$1.07M
Offering Max
0
Days Left
This offering ended on January 16, 2022 and is no longer accepting investments.
Reasons to Invest
The global market for dietary supplements is projected to reach $198 billion by 2025 ($56 billion in the U.S. alone).
Healthycell reached $2.1M in 2020 sales and has landed partnerships with distributor KeHE (serving over 20,000 stores), one of the largest natural product distributors nationwide, and is in discussions with CVS.
First to market with an innovative MICROGEL™ delivery system, as well as protection from a licensed patent-pending and proprietary manufacturing knowledge around organoleptics (especially taste).
Healthycell is a growing brand of dietary supplements on the cutting edge of innovation, giving it the potential to change the way 240 million Americans take nutritional supplements every day. They use a patent-pending MICROGEL™ technology that is replacing tablets, capsules, and powders. 40% of Americans have difficulty swallowing pills. Now they can supplement with a pill-free, great-tasting, convenient experience that gives them maximum absorption of all the nutrients they need without the vitamin taste.
We’ve already brought in millions in sales, secured multiple top-tier partnerships (including Touch of Modern), and built a growing base of loyal customers with very high retention who rave about the improvements our products have on their personal health. We’re ready to change the reputation of nutritional supplements, create opportunities to build them into any lifestyle, and open up their benefits to as many people as possible.
THE PROBLEM
Two problems, one gel
There are two problems at hand. The first is that 40% of American adults have difficulty swallowing pills. This problem is particularly prevalent among aging adults, those with neurological conditions, and people suffering from diseases such as Parkinson’s, Alzheimer’s, and Motor Neurone. With pills, many people resort to crushing tablets into smaller pieces, blending them with food, or simply avoiding them altogether. However, the unfortunate truth is that no matter how you go about ingesting it, a pill’s oversized nutrient particles (the size of fine sand) are often too big for absorption into the bloodstream; the nutrients flow right through you. In the rare case that a liquid alternative is available, it’s messy, inconvenient, and likely tastes terrible.
To compound this even further, 68% of Americans lack confidence in the benefits of their dietary supplements. And for a good reason: most nutrients in pill and powder form are poorly absorbed due to low solubility (ability to dissolve), making them less effective. Some scientists estimate only 10 to 20% of the vitamins and minerals contained in pills get absorbed into your bloodstream. Considering that 77% of the U.S. adult population takes supplements, we’re looking at hundreds of millions of people spending billions of dollars per year on products when they’re not even sure they work!
THE SOLUTION
Introducing our nutrient-rich MICROGEL™
Healthycell provides nutrition supplements, evolved. It’s a revolutionary pill-free experience that delivers the nutrients you need without the unpleasant vitamin taste. Our ultra-absorbable, great-tasting, ingestible gel can be enjoyed straight from the gel pack, added to a drink, or blended into a smoothie. It’s shelf-stable and perfect on the go. Our MICROGEL™ releases nutrient particles that are extremely small, soluble, and ultra-bioavailable. It’s more natural too, without synthetic binding glues, fillers, coatings, and anti-caking agents listed as “other ingredients” in most pill form supplements.
Our supplements come in various purchase sizes and subscription options, with an average order value of $84.92 direct-to-consumer. We sell directly to customers with a 67%+ gross margin through our website and a 53% gross margin through Amazon.com. We also sell B2B directly and via distribution partner KeHE at margins of 25–41%.
Our product testing goes way beyond the industry standard, and we make testing information publicly available upon request.
Our product testing goes way beyond the industry standard. We use only sustainably harvested ingredients and box packaging that is 100% recyclable, while the gel packs themselves are recyclable through our partnership with Terracycle.
THE MARKET
A massive, growing global supplements market
The global dietary supplements market is projected to reach $198 billion by 2025, with a compound annual growth rate of 8.6%. In the U.S. alone, the supplement industry will reach $56 billion by 2025, with a compound annual growth rate of 4.3% (source). This is a highly fragmented industry where the leading player has under 10% market share. The current dietary supplements industry is over 90% pills, and the liquid alternatives that exist are messy and mostly taste terrible.
Over the next four years, Healthycell aims for a market share of 2% of the combined $17.5 billion brain health, immune, sleep, and multivitamin supplements markets. This goal would equate to $125 million in annual sales by 2025. Its initial U.S. target demographic is the middle-to high-income, health-conscious supplement users in the sleep, nootropic, immune, healthy aging, and multivitamin markets. Healthycell has few direct gel-based competitors, and its strong competitive advantages include taste, ingredient load, and absorption/solubility.
OUR TRACTION
Expanding D2C sales and rolling out in stores nationwide
Healthycell saw 60% sales growth from 2019 to 2020, ending the year with $2.15M in sales. It achieved an industry-high subscription retention rate of over 94% per month, along with an average 4.5-star rating across healthycell.com and Amazon.com. Healthycell has customers buying their MICROGEL™ products coming back, on average, 4.8x times per year (and growing). This means Healthycell has a lot of room for customer acquisition spend, which is the main use of funds for this investment round.
They are well on their way to rolling out Healthycell to retail stores nationwide. So far, they’ve partnered with one of the largest natural product distributors in the United States, KeHE, which serves over 20,000 stores.
Most recently, Healthycell has successfully partnered with Pharmaca (28 stores), Erewhon Markets (7 stores), and several independent natural product stores.
Healthycell is also undergoing product testing with CVS for a multi-store test. We have additional pitches going out to Whole Foods, Kroger, and The Vitamin Shoppe.
*This testimonial may not be representative of the experience of other customers and is not a guarantee of future performance or success.
WHY INVEST
The future of vitamins is pill-free
Healthycell is changing the way people take nutritional supplements—and the future of vitamins is pill-free. We’re poised to seize all sorts of new opportunities as we open up the benefits of supplements to a much broader global community. The MICROGEL™ delivery system presents endless B2B & B2C potential, including sales of bulk gel for metered-dose water dispensers or soda fountains for commercial and in-home applications.
Our single-serving gel pack format is also a perfect fit for the hospitality industry (airlines, hotels, and cruise lines), so we are actively exploring partnerships in these industries. We’ll also plan to further develop and license our MICROGEL™ technology and trademarks to other brands for new and private-labeled products. And that’s just the start. Join us to revolutionize this enormous sector of health and wellness.
On the Horizon
We believe the future of the nutrition industry is three-pronged:
- Pill-free with better absorption (which is where we now play)
- Validation with objective data feedback via biomarker test kits
- Personalization of products based on objective data from tests and subjective data from survey feedback
We plan to launch our first four test kits in Q4 of this year to help customers see the improvements they are expecting from our products.
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In the Press
New York Post
Healthycell Supplements Can Help You Stay Focused and Sleep Better
Healthycell Partners with UNFI to Expand Its Line of MICROGEL™ Pill-free Supplements at Retail Stores Nationwide
Healthycell continues to expand its retail footprint in national chain stores supported by UNFI's extensive distribution and warehousing infrastructure throughout the U.S. that provide efficient service and speed-to-market.
Nutra Ingredients USA
Are Bioactive Gels the Future of Multivitamins? Healthycell Thinks So
PR Newswire
Healthycell Secures $1.62 Million Investment as Bridge Round to Series A Led by Keen Growth Capital
Nutrition Insight
Future Food-Tech start-ups tap into “revolutionizing” potential for personalized nutrition and food as medicine
Offering Summary
Company | : | Life Science Institute LLC |
Corporate Address | : | 3301 Salterbeck Street, Suite 102, Mount Pleasant, SC 29466 |
Offering Minimum | : | $9,999.78 |
Offering Maximum | : | $1,069,998.79 |
Minimum Investment Amount(per investor) | : | $100.63 |
Terms
Offering Type | : | Equity |
Security Name | : | Common Class E |
Minimum Number of Shares Offered | : | 34,482 |
Maximum Number of Shares Offered | : | 3,689,651 |
Price per Share | : | $0.29 |
Pre-Money Valuation | : | $15,394,820.52 |
*Maximum Number of Units Offered subject to adjustment for bonus units. See Bonus info below.
Company Perks*
Time-Based:
Super Early Bird Bonus
Invest within the first 48 hours and receive an additional 7% bonus units.
Early Bird Bonus
Invest within the first week and receive an additional 5% bonus units.
Amount-Based:
$500+ | Tier 1
Invest over $500 and get a free 1st month of any product on subscription.
$1,000+ | Tier 2
Invest over $1,000 and get a super high-quality, ultra-comfortable Healthycell t-shirt, and a free 1st month of any product on subscription.
$2,000+ | Tier 3
Invest over $2,000 and get a super high-quality, ultra-comfortable Healthycell t-shirt, and a free 1st month of any product on subscription, and 3% bonus units.
$5,000+ | Tier 4
Invest over $5,000 and get a super high-quality, ultra-comfortable Healthycell t-shirt, and a free 1st month of any product on subscription, and 4% bonus units.
$10,000+ | Tier 5
Invest over $10,000 and get a super high-quality, ultra-comfortable Healthycell t-shirt, and a free 1st month of any product on subscription, and 5% bonus units.
*All perks occur when the offering is completed.
The 10% StartEngine Owners' Bonus
Healthycell will offer 10% additional bonus units for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any units they purchase in this offering. For example, if you buy 100 Common Class E Units at $0.29 per unit, you will receive 110 Common Class E Units, meaning you'll own 110 Common Class E Units for $29. Fractional units will not be distributed and unit bonuses will be determined by rounding down to the nearest whole unit.
This 10% Bonus is only valid during the investors' eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
Irregular Use of Proceeds
Example - The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments and salary made to one's self, a friend or relative; Any expense labeled "Administration Expenses" that is not strictly for administrative purposes; Any expense labeled "Travel and Entertainment"; Any expense that is for the purposes of inter-company debt or back payments.
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Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$1,199,823.00
USD
$1,288,903.00
USD
Cash And Cash Equivalents
$59,164.00
USD
$218,142.00
USD
Accounts Receivable
$21,323.00
USD
$15,453.00
USD
Short Term Debt
$556,544.00
USD
$515,237.00
USD
Long Term Debt
$191,525.00
USD
$0.00
USD
Revenues And Sales
$2,149,093.00
USD
$1,348,351.00
USD
Costs Of Goods Sold
$926,886.00
USD
$532,843.00
USD
Taxes Paid
$0.00
USD
$0.00
USD
Net Income
-$792,178.00
USD
-$1,125,576.00
USD
Risks
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Updates
Fundraising Round Ending Early: Only 8 Days Left!
4 months agoWe have been growing so fast that our sales warrant a higher valuation than $15.4 million. For this reason, we are ending our campaign early. Thank you to all investors who participated so far.
New Customer Growth is Very Strong
5 months agoOur active customer base has more than doubled to 4,760 since July.
New Customer Growth at All-Time Highs
5 months agoOur customer base is growing faster than ever before!
In November we brought in over 2,000 new customers.
The growth in new customers is one of the reasons we are also seeing record sales.
Healthycell Expands in 20 Stores Across Florida, Arkansas, Oklahoma and Missouri
6 months agoRetail sales are expanding!
Healthycell has launched its MICROGEL™ supplements in 20 stores across Florida, Arkansas, Oklahoma, and Missouri in partnership with Healthy Edge Retail group that sources products for Akin's Natural Foods, Chamberlin's, and Earth Origins Market.
Read the full press release here: https://www.prnewswire.com/news-releases/healthycell-supplements-now-available-at-akins-chamberlins--earth-origins-stores-301435974.html
Healthycell Hits 2021 Sales Record !!!
6 months agoWe broke $315,000 in sales this November!
That's a new record this year!
We've achieved these sales with major out-of-stock issues. We are still out of stock on 20% of our products. With supply coming under control shortly, I see a 2022 of MAJOR growth.
The run rate based on this number is annual sales of $3.78 million. At a 5x multiple, this puts the valuation of our company at $18.9 million. You have the chance (for now) to invest at a $15.4 million valuation!
Human Clinical Trial Results: MICROGEL™ Shows 265% More Absorption Compared to Tablets!
6 months agoWe are thrilled to announce our IRB-approved, double-blind, randomized, crossover human clinical trial assessing the absorption of a nutrient delivered in our patent-pending microgel format vs. tablet format.
Statistically Significant Results:
- The nutrient delivered via MICROGEL™ resulted in 265% more absorption compared to tablets, as measured by incremental area under the curve (iAUC).
- The nutrient delivered via MICROGEL™ drove a maximum nutrient concentration in blood 244% higher compared to tablets, as measured by incremental maximum concentration (iC).
We’ve always been confident in the absorption offered by our gel-based supplements because they are fully soluble, and solubility is one of the gold standard surrogates for bioavailability. This human clinical study validates that confidence. The study will be submitted to peer-reviewed nutrition journals for publication.
The nutrient tested was Vitamin E as alpha-tocopherol. We plan to commission additional studies using other nutrients (vitamins, minerals, or botanical extracts) to continue building our data repository around supplement bioavailability.
Studies like this differentiate Healthycell from competitors in the dietary supplement industry.
We've passed $200K and have some exciting news!
6 months agoWe are thrilled to announce that we have over $200K raised already! Thank you to our current 198 investors who believe in improving the way 240 million people take supplements every day in the U.S. with a solution designed to offer:
A pill-free, great-tasting experience for the 40% of people who have difficulty swallowing pills
Nutrients that can be absorbed (via our patent-pending MICROGEL™ technology)
Results that can be measured (via our test kits coming soon)
By solving the challenges of traditional tablets and capsules, we're disrupting the massive and growing $58 billion dietary supplement industry. This creates an opportunity for sizable growth in the coming 12 to 24 months.
Newsflash!!!
We were contacted by Rite Aid and recently held an intro call with two category managers. They requested samples and are interested in the possibility of Healthycell at their 2,450 store chain. This is in addition to CVS, the 9,800 store chain with which we are currently doing product testing.
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