HYLETE, Inc.

Fitness Lifestyle Brand Community Built, Backed, and Driven

HYLETE, Inc.

Fitness Lifestyle Brand Community Built, Backed, and Driven

Solana Beach, CA
Fashion & Apparel
HYLETE is a fitness lifestyle brand, founded on the core belief that a company’s impact can and should live beyond the products they sell. Built on a foundation of innovation and quality, HYLETE’s energy is equally focused on inspiring the well-being of their community.

$1,068,271

raised
1,178
Investors
64
Days Left
$1.00
Price per Share
$30.4M
Valuation
Equity
Offering Type
$500.00
Min. Investment

$1,068,271

raised
1,178
Investors
64
Days Left
$1.00
Price per Share
$30.4M
Valuation
Equity
Offering Type
$500.00
Min. Investment

Bonus Rewards

Get rewarded for investing more into HYLETE, Inc.

$500+
Investment
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below
$500+
Investment
HYLETE Investor Account
Get 50% off retail value on all regular priced products, 10% off clearance locker items, free ground shipping on all orders within the continental U.S, exclusive investor pricing on all HYLETE project and pre-order products + exclusive offers
$5,000+
Investment
$5,000+ Bonus
10% bonus shares when you invest $5,000 or more

Reasons to Invest

We had net revenues of $11.7 million in 2018 (with 40% cumulative growth rate from 2013-2018).
We have over 248,000 loyal customers, 25,000+ are certified fitness experts.
We have successfully conducted 7 crowdfunding rounds raising $9.7 million from 4,265 investors.

OWN PART OF THE BRAND YOU HELP BUILD

Invest in HYLETE

What started with one training short in 2012 has grown into an extensive line of men's and women's apparel, backpacks, and the first HYLETE cross-training shoe introduced in 2018. Building great product is not our only goal - we believe that a brand's impact can and should live beyond the products they sell. As we build on a foundation of innovation and quality, our energy is equally focused on inspiring the well-being of our community.

Innovation with a focus on performance: Each detail of every design has a purpose. Whether it's fine-tuned for your most intense training session, or optimized for comfort outside of the gym, we are committed to providing high-quality products at our unique "HYLETE pricing."


Community built, backed, and driven: By removing the noise of traditional retail, your feedback goes directly into the development of new products and improving the overall HYLETE experience. With over 248,000 customers, HYLETE has evolved into a world-class community-driven brand. We do this with the support, input, and feedback of the "HYLETE nation" community, over 25,000 of which are influential fitness professionals.

Long-Term Focus: After many years of building our company and as we continue to grow, we will continue to maintain our discipline to initiate and follow through on projects that we believe are in the best interest of our shareholders and our company. We have continuously implemented new initiatives and capabilities and added valuable team members with a distinct eye for the future. We have relied upon the trust of the HYLETE nation, our customers, and our thousands of investors to date to support our shared long-term vision.


The HYLETIAN Culture: To date, we have attracted and retained an incredibly smart and innovative team or as we term ourselves, HYLETIANS. We believe that our culture has given us an advantage in our industry, and that by prioritizing HYLETIANS, we ultimately take care of the HYLETE nation and our shareholders.

Summary: HYLETE is not a conventional athleticwear company. We have always operated with a different mindset and have applied the values that set us apart from companies solely driven by short term objectives.


We will optimize for the long term and refuse to chase short term results. We will have the tenacity and resolve to succeed in fulfilling our vision of being a leading fitness lifestyle company that changes people's lives for the better.


We will do our best to recruit the most creative, committed HYLETIANS that desire to embody the qualities and characteristics of our company culture. All of us HYLETIANS pledge to do our best to make HYLETE a long-term investment success, as well as making as many lives as possible healthier and happier.


- Ron L. Wilson, II

Co-Founder and CEO

The Market

The Total Available Market (TAM) for athletic wear (which includes apparel and footwear) is a $97 billion a year industry in the United States. [1] The gym industry places the number of people who engage in fitness in the U.S. at 66.5 million. [2] Taking the TAM and dividing by the 66.5 million, the average

yearly spend per individual is $1,459.


The Serviceable Available Market (SAM) totals 22.5 million and is comprised of individuals who participate frequently in cross-training and high-intensity interval training. [3] Taking this core market and then multiplying by the average yearly spend per person yields a SAM of $32.8 billion per year.

HYLETE’s strategy is centered in focusing on a smaller, passionate customer base within its 22 million potential users. The company engages their customers to become investors or ”investomers” by actively participating in ownership in the fitness lifestyle brand they have come to trust and with which they identify.


Investors receive exclusive investor perks to further incentivize their purchases. These perks include 50% off all regular priced footwear, gear, and apparel; free ground shipping; and exclusive investor pricing on all HYLETE Project, pre-order, and clearance locker items.


[1]Morgan Stanley https://morganstanley.com/ideas/global-athletic-wear-geared-for-growth

[2]IHRSA http://www.ihrsa.org/about-the-industry

[3]2017 SFIA – Sports, Fitness, and Leisure Activities Total Participation Report

PRODUCT SUCCESS

What started with one men's performance short has grown into a full men's performance and lifestyle line, a growing family of bags and backpacks, a full women's performance line, and footwear.

Circuit Cross-Training Shoe: Replacing the functionality of three distinct shoe types to make a cross-trainer that is also proficient for running and lifting. New and novel technology includes three interchangeable insoles, so users can adjust their performance in one innovative shoe.

Iris Short: HYLETE’s best-selling women’s product. A thoughtfully cut breathable mesh liner supports your every movement and never rides up. The anti-muffin top waistband delivers a smooth silhouette in the waist and hips so you never have to adjust the fit.

‘Find Your Perfect Short’: Innovative features distinguish each unique design with multiple lengths and cuts so you can find your perfect fit and style of shorts for each and every activity.

Nimbus Collection: A capri, tight, or capri and tight in one, the Nimbus Collection supports you through your most intense training sessions. Flattering lines in a soft breathable fabric that passes the squat test with no see-through, for a look so fashionable, you’ll want a pair in every color.

Icon 6-in1 Backpack: Care and consideration were put into a design that makes it possible for one bag to do the work of many. Six conversions let you choose how to wear the only bag you’ll ever need for work and travel.

Flexion Collection: A HYLETE Nation favorite. What started as one pair of pants quickly became an entire product line. A three-season fabric that is a hero in temperature regulation, for warmth in cold weather and breathability when it’s hot so you’re always ready to perform your best.

‘Fashion meets function’: HYLETE women’s apparel is as functional and comfortable as it is fashionable so you can show off your style in designs that can be worn to the gym or happy hour, with durability that stands up to your training sessions, complementing your hard-earned results.

The Retail Shift

Explained using Aristotle's 3 Rhetorical Appeals, we define the retail shift in terms of the Logos, Ethos, and Pathos


The Logos - The logic/persuasion

When we founded HYLETE in 2012, we recognized the opportunity of online shopping and consumers were searching for a more direct connection with the companies they shopped from. Speed to delivery became a priority in shopping decisions just as online marketing was personalized.


For us, the choice to sell "Direct to Community" was clear. We decided to cut out the middleman (i.e., traditional retail stores)  and offer innovative and quality products at a better price than what you would find in stores. As a direct to consumer brand, HYLETE is able to offer unique HYLETE Pricing; the Retail Value is displayed beside the HYLETE Price so you know just how much you’re saving by supporting a brand that sells directly to its community.


The Ethos - The Credibility 

We quickly gained credibility with our audience as a digitally native brand. We have been able to completely own the customer journey from acquisition to loyal community members. Our community continues to purchase from us because we have an innovative product, but more importantly, we give an incredible customer experience to each and every community member in the "HYLETE nation."

The Pathos - Continuously evolving to be successful

We have found that companies will have success if they are, what we term, Preferential Lifestyle Brands (PLB) or Emotive Lifestyle Brands (ELB). PLBs are your 'Amazons' and 'Starbucks' of the world. They are the brands that offer convenience and have created a lifestyle standard that meets the demand of the marketplace. But people switch to something better if it comes along. Emotive Lifestyle Brands, or ELBs, offer an emotional connection to their customers. Customers wear that brand's name on their tee and are proud to be a customer. HYLETE is an Emotive Lifestyle Brand. Our dedicated customer base of over 248,000 community members continues to grow, and our customers connect with the brand on a deeper, more loyal level.

HYLETE Charity Support Program

HYLETE believes that a brand’s impact should live beyond the products they sell. The HYLETE charity support program champions charities that share the same core beliefs of the HYLETE community. Handpicked for their clear vision and genuine compassion, HYLETE offers different ways to participate in giving back to these admirable causes.


Through its Charity Support Program, HYLETE contributes 50% of revenue from charity apparel sales back to charity. In addition to these charities, HYLETE supports the GRACEDBYGRIT foundation's mission to provide scholarship opportunities to female student-athletes who are pursuing athletic participation at the collegiate level. As part of HYLETE’s contribution, 1% of all sales of HYLETE women’s apparel goes back to the GRACEDBYGRIT foundation.


There are currently 6 charity organizations that are part of the HYLETE charity support program, featured below.

HYLETE Service League and HYLETE Train Team

HYLETE Service League

HYLETE cares about the military community and is passionate about connecting with the men and women who train to ensure the safety of others. Over 18,000 military and first responders are currently part of the HYLETE Service League. Additionally, the Military Morale Program was

created to help boost morale for deployed service members.

HYLETE Train Team

Over 25,000 certified trainers are currently part of the HYLETE Train Team. This also includes NASM, AFAA, and LifeTime Academy certified trainers. HYLETE's Train Team contributes their expert voice through written content in the Community Forum.

Strategic Partnerships

NASM/AFAA

HYLETE’s premium performance apparel and gear partners with NASM and AFAA’s dedication to the science of personal training. NASM and AFAA certified trainers are invited to create an exclusive trainer account on HYLETE.com with team perks.

JYM

HYLETE has partnered with Dr. Jim Stoppani and JYM Supplement Science to make co-branded HYLETE apparel based on a shared philosophy with a focus on functional fitness. Dr. Stoppani, the founder of JYM Supplement Science, is dedicated to creating all-in-one formulas with high-quality ingredients backed by science.

LIFE TIME Academy

LIFE TIME Academy and HYLETE have partnered to provide trainers the opportunity to represent themselves and their personal brand professionally in the world of functional fitness. Prospective and certified LIFE TIME Academy students and trainers are invited to create an exclusive trainer account on HYLETE.com with team perks.

Our Future

We are actively seeking a liquidity option for our shareholders. While we have postponed our IPO, our ultimate goal is still to become a public company, by listing our stock on either the OTC markets, NASDAQ, or NYSE. This Reg CF raise is the next step for us to help us reach that goal.


Along with seeking liquidity, HYLETE has several initiatives in the works for the future, which we are excited to be able to share with the HYLETE community.

Daily Circuit App 2.0

The new Daily Circuit App will provide 5 separate workout tracks, each providing a different intensity and focus to more accurately fit your fitness lifestyle. The new coach's portal will give trainers and coaches the ability to program for, and communicate with their clients, creating a more personalized experience for the end user. Both the coach's and trainer's versions will come with a new fitness library, detailing of more than 500 movements and growing.

"*Images are computer generated demo versions. The Daily Circuit 2.0 is still currently under development. The original Daily Circuit App is available for free download in the Apple App Store and Google Play."

Experiential Retail Meets Fitness

Investors and customers frequently ask for a physical location to touch, feel, try on and purchase HYLETE products, in person. As a head to toe plus carry product driven brand, we recognize the opportunity to build community “hubs” where we can not only showcase and sell the latest gear which will drive customer acquisition and revenue but host community driven events for our charity partners and for the HYLETE Daily Circuit App. 

We aim to open our first Experiential Retail Meets Fitness Location in 2021.

*Images are computer generated demo versions. This location is still currently under development.

You Heard it From the HYLETE Community First

Be part of our growth and success. Invest in HYLETE and be part of a brand that is built, backed, and driven by its community. Thank you for your continued support!

Offering Summary


Company

:

HYLETE, Inc.

Corporate Address

:

560 Stevens Ave, Solana Beach, CA 92075

Offering Minimum

:

$10,000.00

Offering Maximum

:

$1,070,000.00

Minimum Investment Amount

(per investor)

:

$500.00











Terms


Offering Type

:

Equity

Security Name

:

Class A Common Stock

Minimum Number of Shares Offered

:

10,000

Maximum Number of Shares Offered

:

1,070,000

Price per Share

:

$1.00

Pre-Money Valuation

:

$30,439,525.00











*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below

Perks* and Investment Bonuses

Early Bird Bonus: 10% bonus shares when you invest during the first week of the offering

$5,000+ Bonus: 10% bonus shares when you invest $5,000 or more

Stacked Bonus: 20% bonus shares when you invest $5,000 or more during the first week of the offering

Investor Account on HYLETE.com

The investor account entitles you to the following perks:

50% off retail value on all regular priced products

Additional 10% off clearance locker items

Free ground shipping on all orders within the continental U.S.

Exclusive Investor pricing on all HYLETE project and pre-order products

Double HYLETE points

Personalized Brand Experience Specialist

Exclusive Offers

*All perks occur after the offering is completed

The 10% Bonus for StartEngine Shareholders

Hylete, Inc. will offer 10% additional bonus shares for all investments that are committed by StartEngine Crowdfunding Inc. shareholders who invested over $1,000 or made at least two investments in StartEngine's own offerings.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 500 shares of Class A Common Stock at $1/ share, you will receive 50, meaning you'll own 550 shares for $500. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement, unless their eligibility period has been extended through additional subsequent investments in StartEngine's own offerings.  

Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company that 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

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$6,724,708.00 USD
$3,528,380.00 USD
Cash And Cash Equivalents
$1,470,436.00 USD
$616,262.00 USD
Accounts Receivable
$123,194.00 USD
$75,319.00 USD
Short Term Debt
$4,749,925.00 USD
$200,000.00 USD
Long Term Debt
$1,490,004.00 USD
$2,996,920.00 USD
Revenues And Sales
$11,689,200.00 USD
$8,773,025.00 USD
Costs Of Goods Sold
$5,461,090.00 USD
$4,065,845.00 USD
Taxes Paid
$800.00 USD
$800.00 USD
Net Income
-$5,051,354.00 USD
-$3,232,973.00 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

Notice of Funds Disbursement

9 days ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, HYLETE, Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in HYLETE, Inc. be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Show More Updates End of Updates

Comments ({{profileCtrl.startup.comments_count}} total)

{{profileCtrl.newComment.body.length}}/2500
{{ profileCtrl.commentsLoading ? 'Loading...' : 'Show More Comments' }}