The ViscoSoft Group offering is now closed and is no longer accepting investments.

ViscoSoft Group

Sleep Technology Company

ViscoSoft Group

Sleep Technology Company

Charlotte, NC
E-Commerce
Health Tech
Viscosoft wants to change the way the world sleeps. With a background in textile engineering, product development, and sensor technology, our mission is to provide consumers around the world with high-end bedding products that deliver ultimate comfort, unmatched value and the smartest, data-driven sleep experience ever to exist.

$25,192

raised
40
Investors
$50M
Valuation
$188.68
Price per Share
$188.68
Min. Investment
Units
Security Type
Equity
Offering Type
$1.07M
Offering Max
0
Days Left

$25,192

raised
40
Investors
$50M
Valuation
$188.68
Price per Share
$188.68
Min. Investment
Units
Security Type
Equity
Offering Type
$1.07M
Offering Max
0
Days Left
This offering ended on December 01, 2021 and is no longer accepting investments.

Reasons to Invest

Viscosoft is poised to become one of the most recognized brands in the $432B sleep industry. We are an Amazon top 250 seller and have several products that have been recognized by industry experts for delivering great sleep through thoughtful design and innovative materials, including Good Housekeeping’s prestigious ‘Best Bedding’ award in 2021.
Over the past 4 years, more than 500K direct consumers have contributed to revenues of more than $95M and increased profitability last year. 2020 revenues reached $30M as the direct-to-consumer business (Viscosoft.com) grew more than 700% YoY from increased brand recognition, customer loyalty programs & product partnerships.
Sleep technology is a $12.5B industry and expected to reach $40.6B within the next 5 years. Viscosoft is committed to delivering a first-of-its-kind mattress topper with integrated sleep-quality sensors for under $200.

Overview


A Winning Startup in Bedding & Sleep Tech with a Unique Name 

Viscosoft believes sleep is the best thing you can do for yourself.

It restores your energy, affects your mental health, and directly impacts everyday experiences. Sleep is the fuel for everything we do while we’re awake – and we are reimagining the opportunities to make it better.


Our innovative products already offer remarkable comfort through an in-house research and development process fueled by insights from thousands of loyal customers.  We’re among the fastest growing sleep brands in France, popular with retailers like Bed, Bath & Beyond, seen our toppers become some of the most admired on the internet and we’ve got a tech-vibe in our name. For these reasons, and many others, we’re proud to be labeled ‘unique’.

The Problem


Sleep is Becoming an Epidemic

Insomnia affects 30-45% of the world’s adult population. 41% are affected by a less severe form of sleep disruption such as night sweats. What keeps us up at night? Knowledge that the problem is getting worse!

Stress, chronic pain, and unhealthy lifestyle habits such as drinking, smoking and obesity are contributing to rampant sleep deprivation and a rapid increase in the search for remedies. The global market for sleep aids is currently $70B and expected to surpass $100B in less than five 5 years.

* Source

The Solution


Engineer an Entirely New Path to Great Sleep 

Our mattress toppers have already become some of the most popular on the internet. They have over 23,000 verified reviews, are widely recommended on social media and passionately endorsed as alternatives to replacement mattresses that are poor quality and over-priced. Loyal customers appreciate their ability to extend the life of an aging mattress, offer comfort to those struggling with back, hip or neck pain and come with removable covers to immediately create a clean, luxurious sleep surface for significantly less than a new mattress.

The expertise in material science and product development that allowed us to create some of the best cool-sleep products in the world will now allow us to bring you a revolutionary, AI-driven smart sleep experience.  We’re adding integrated sensor technology to our most popular products to formulate personalized sleep performance insights aimed at improving the quality of your sleep.  The integration will extend to smart home devices and popular wellness apps such as Headspace and Calm that consumers trust to positively influence sleep. 

*Image of a prototype. ViscoSoft's sensor technology is still currently under development and not available on the market.


We are also proud to be a sustainability-conscious business. Our products are designed to delay the disposal of existing mattresses by several years. They are also versatile enough to meet customer needs for great sleep in unique environments such as college dorms, recreational vehicles, rental homes, pull-out couches, and airbeds.

The Market


Sleeping Easy Knowing we are Penetrating a Growing Market

The market for sleep aides is growing at 7% annually and expected to exceed $100B by 2025. Most consumers continue to favor ‘on-bed’ products, such as mattress toppers and pillows, for improving sleep over alternatives like supplements, noise machines, CPAP devices, and sleep labs.


The mattress category in the US is currently $17B and expected to exceed $20B over the next five years.  Toppers are a significant driver of category growth as consumers increasingly recognize premium toppers as budget-friendly, environmentally conscious alternatives to new mattresses.

Our Traction


Online Revenue Growth & Emerging Channel Expansion 

Operating revenue has more than doubled over the last three years from $14M to over $30M and delivered an EBITDA of approximately of $650K in 2020. Growth is driven by new customers as well as existing customers purchasing accessory products (protectors, pillows and sheets) or additional toppers for guest rooms, dorm rooms and vacation homes. Thru July, orders from existing customers are up 22% over last year.

 

Additional 2021 highlights include Q1 revenue growth of 45% (YoY) and recognition from Good Housekeeping of the prestigious Best Bedding award in May.  This recognition is the latest example of similar accolades from Healthline, Forbes, NY Magazine, Sleep Foundation, and Rolling Stone.

The second and third quarter of 2021 are poised to further propel our growth. 2020 saw most retail partners close for extended periods as the world endured the COVID-19 pandemic.  With brick and mortar re-opening in 2021 we expect an expanded set of retail partners to drive increased wholesale order volume as well as boost online awareness, with e-commerce platforms like Amazon and Walmart.com benefiting the most. Viscosoft toppers currently own an 8% share of the category on Amazon. Expectations for an increase to a 10% share by the end of 2022 are supported by specialty product growth (charcoal and lavender-infused toppers), new size options (short queen) and additional product launches planned for Q4’21.


Our popularity with retailers is attributable to a reputation for being a dependable partner with products that exceed customer expectations.  Over 10M Viscosoft products have been purchased by customers of these retail partners.

Business will also benefit from an expanded relationship with premier and 5-star Airbnb hosts.  We’ve partnered with highly desirable locations across the country to help hosts deliver a world class sleep experience to their guests. With our products in place, the host increases the likelihood of a satisfied guest and Viscosoft is afforded the opportunity for consumers to experience award-winning toppers in the physical world. Doorhangers in the master bedroom are one way guests learn more about why they slept so well.

What We Do


Amazing Sleep Within Reach

Authenticity and a relentless commitment to a quality. These are cornerstones of every product we produce. We don’t rely on flashy marketing tactics or celebrity endorsements to convince consumers the Viscosoft product line-up is better than competitor alternatives.

We invest in customer feedback, product research, materials and quality manufacturing. These efforts allow us to better understand why consumers prefer our products and deliver innovations that genuinely delight customers.


This approach keeps prices low and quality well above the average direct-to-consumer sleep company.  

The Business Model


A Business Designed to Scale

We commercialize our products through our own web properties (Viscosoft.com, Musesleep.com, Mello-matelas.fr) and select e-commerce platforms (Amazon.com and Walmart.com)

We also wholesale our product lines to furniture and mattress retailers such as Jerome’s, Cardi’s, and other larger off-price retailers such as Primark, TJ Maxx/Marshall’s, HomeGoods, Burlington, and Christmas Tree Shops.


AOV in the US is $157.40 for our viscosoft.com property and approximately $850 for musesleep.com. In France, AOV is €138.51 for mello-matelas.fr. Our COGS are approximately 32-35% of the sales volume leaving gross margins of 65-68% before variable expenses. 

How We Are Different


Executing on Four Different Professions Within one Business for More Vertical Integration of the Supply Chain

Viscosoft is dedicated to delivering amazing, transparent, and sustainable value to the customer. Our fabric from China, sewing in Central America and the Caribbean, foam from US suppliers, and sensors from Finland and China make for a complex supply chain that most companies won’t and can’t to take on. 

While potentially intimidating, we have embraced the challenge, and our customers have benefited. 


Because of this, our products have some of the lowest return rates in the industry and have allowed us to introduce an innovative re-commerce campaign with Airbnb hosts to turn returns into marketing assets that scale our brand awareness. This awareness and brand equity create pricing power for our products in competitive environments like Amazon.

The Vision


A Dominant Brand in the Smart Sleep Space

We see ourselves as a leader in the mattress topper and smart sleep space in coming years.

 

We plan to leverage our growing brand awareness and online market share to unlock even more traditional retail relationships with solid wholesale margins affording a larger volume of potential customers the opportunity to experience our products in person. 

Our dedication to improving on quality, efficiencies with logistics & scale, as well as spinning up the SaaS model embedded in our smart topper offering makes us confident in earning our way into customers’ homes.

OUR LEADERSHIP


A Global Team of Mission-Driven Innovators 

We have a rockstar team of professionals across three continents that are experienced and aligned with the company’s mission to deliver a better way to great sleep. 


A unique combination of world-class, international sourcing & supply chain, technology, digital marketing, and a small but mighty team positions us to continue to grow quickly over the coming 3-5 years and beyond.

Why Invest


Cutting Edge Sleep Products Meant to Make an Impact 

With over a decade of experience, we possess the drive to create innovative, new products that make a material difference in our customers' sleep.


Over the last four years, more than 500,000 happy customers are sleeping better thanks to Viscosoft's quality offerings at approachable retail prices.

From our pivot into e-commerce, direct-to-consumer, and sleep technology - we've found the need to scale our operations and are excited to share in our growth through equity crowdfunding. 


Investing in Viscosoft doesn't only put you into the fast-growing sleep tech space - it does so with the knowledge that the people running the company are experienced operators with a track record of building direct-to-consumer brands and products that consumers love. 

Investor Perks


In the Press

The Spruce

The 7 Best Memory Foam Mattress Toppers of 2021

CNET

Best mattress toppers for 2021 If you're not ready to buy a new mattress, these mattress toppers can make your current bed feel more comfortable for less.

Healthline

Best Mattress Toppers 2021

Offering Summary


Company

:

ViscoSoft Group, LLC

Corporate Address

:

2923 South Tryon Street, Suite 140, Charlotte, NC 28203

Offering Minimum

:

$9,811.36

Offering Maximum

:

$1,069,815.60

Minimum Investment Amount

(per investor)

:

$188.68











Terms


Offering Type

:

Equity

Security Name

:

Class B Non-voting Units

Minimum Number of Shares Offered

:

52

Maximum Number of Shares Offered

:

5,670

Price per Share

:

$188.68

Pre-Money Valuation

:

$50,000,200.00











This Offering Memorandum (this “Memorandum” or “Offering Statement”) is provided solely to prospective investors through the Crowdfunding Portal provided at www.startengine.com and any subdomain thereof (the “Portal”) for the sole purpose of evaluating investments in certain securities (“Securities”) offered by ViscoSoft Group, LLC, a North Carolina limited liability company (the “Issuer”). The Securities, in the form of Units, will be governed by, a securities purchase agreement between the Issuer and the purchasers of the Securities.

The Issuer is seeking to raise a target of $9,811.36 and a maximum of $1,069,815.60 through the offering and sale of Securities on the StartEngine online portal (the “Offering”) in reliance on the exemption from registration pursuant to Section 4(a)(6) of the U.S. Securities Act of 1933 and the associated regulations thereto (“Regulation Crowdfunding”).

Maximum number of Units offered includes Bonus Units and is subject to adjustment for Bonus Units. See “Perks and Additional Bonus Units” and “The 10% StartEngine Owner’s Bonus.” Investments are made on a “first come first served” basis.

The deadline to reach the minimum target amount is November 30, 2021. If the sum of the investment commitments does not equal or exceed the target offering amount prior to November 30, 2021, no Securities will be sold in this Offering and investment commitments will be cancelled and committed funds will be returned to you.

Perks and Additional Bonus Units

In addition to anyone who is a member of the StartEngine OWNers bonus program as described below, certain other investors in this offering are also eligible to receive additional Units for their Units purchased (“Bonus Units”), which effectively gives them a discount on their investment. Receipt of Bonus Units pursuant to the StartEngine OWNers bonus program are not cumulative with the Bonus Units eligible to be received pursuant to the perks described below. 

Eligible investors will receive, as part of their investment, Bonus Units equal to 5%, 10% or 15% of the Units they purchase, depending upon perks described below. Investors receiving the 5% bonus (for investments of $2,500 or more) will pay an effective price of approximately $179.25 per Unit before the StartEngine processing fee, while investors receiving the 10% bonus (for investments of $10,000 or more) will pay an effective price of approximately $169.81 per Unit before the StartEngine processing fee and investors receiving the 15% bonus (for investments of $50,000 or more) will pay an effective price of approximately $160.38 per Unit before the StartEngine processing fee. The StartEngine processing fee will be assessed on the full Unit price of 188.68 for the purchased Units, and not any Bonus Units. 

If eligible for Bonus Units, investors will receive the greater amount of Bonus Units for which they are eligible and are not cumulative even if investors would qualify for multiple eligibility categories for receipt of Bonus Units. No additional consideration will be received by the Issuer for the issuance of Bonus Units and the Issuer will absorb the cost of the issuance of the Bonus Units. 

The Issuer will provide Investors with the following perquisites (“Perks”) to investors in this Offering whose funds are received by the Transfer Agent, in addition to the Units offered through this Offering. The perks for each level of investment is provided below. 

Tier 1 - $250+

A cooling Edge Memory Foam Travel Pillow - Perfect as a neck pillow at home or on the go!

Tier 2 - $500+

A set of crisp 300 Thread Count Organic Cotton Sheets - Amazing quality and durability.

Tier 3 - $1,000+

Choice of any Viscosoft signature mattress topper or pad. Recognized industry-wide for incredible quality and value. 

Tier 4 - 2,500+

Choice of any mattress topper + one bedding accessory. Investors will also receive an additional 5% Bonus Units with this level of investment.

Tier 5 - $5,000+

Choice of any Viscosoft or Muse Sleep mattress! Up to a $1,600 retail value. Investors will also receive an additional 5% Bonus Units with this level of investment.

Tier 6 - $10,000+

Choice of any Viscosoft or Muse Sleep Mattress. Choice of any Viscosoft matttress topper and two bedding accessories. Investors will also receive an additional 10% Bonus Units with this level of investment, as well as a 20 minute intro call with company management.

Tier 7 - $25,000+

Choice of any Viscosoft or Muse Sleep Mattress. Choice of any Viscosoft topper and five bedding accessories for your home. Investors will also receive an additional 10% Bonus Units with this level of investment, as well as a 30 minute Zoom call with our co-founder and CEO.

Tier 8 - $50,000+

Beds for your entire home and up to 10 accessories in any way you choose. Investors will also receive an additional 15% Bonus Units with this level of investment, as well as set up a 30 minute Zoom call with Gabe Dungan, our co-founder and CEO.

*All perks occur when the offering is completed.

**For the product perks, the Company is only able to deliver these perks to investors in the contiguous 48 states in the US.

The 10% StartEngine Owner’s Bonus

The Issuer will offer 10% additional bonus Units for all Units purchased by investors who are eligible to participate in the StartEngine Crowdfunding Inc.'s OWNer’s bonus.*

For example, if an investor purchases 100 Units at $188.68 per Unit, the investor will receive 110 Units even though their investment was only $18,868 (100 x $188.68). Fractional Units will not be distributed and bonuses will be determined by rounding down to the nearest whole Unit.

This 10% bonus is only valid during the eligibility period determined by StartEngine. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the Issuer surpasses its maximum funding goal. Meaning, 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 based on their initial investment in the Issuer, which will be the highest bonus rate they are eligible for. 

*See https://www.startengine.com/owners-bonus for details.

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. Inter company debt or back payments.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$7,964,000.00 USD
$7,917,000.00 USD
Cash And Cash Equivalents
$432,000.00 USD
$302,000.00 USD
Accounts Receivable
$2,868,000.00 USD
$3,584,000.00 USD
Short Term Debt
$8,531,000.00 USD
$8,374,000.00 USD
Long Term Debt
$1,064,000.00 USD
$1,186,000.00 USD
Revenues And Sales
$30,522,000.00 USD
$30,151,000.00 USD
Costs Of Goods Sold
$14,536,000.00 USD
$17,673,000.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
$41,000.00 USD
-$779,000.00 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

Ambassadors Program - Live

about 2 months ago



Earlier this month Viscosoft relaunched its brand ambassador program.  An overwhelming amount of partnership inquiries convinced us to expand the program for customers and fans. Brand champions and loyal customers are eligible to become ambassadors.  Once accepted to the program, members earn free products and commissions for endorsing Viscosoft to their online communities...sharing our mission to deliver a better way to great sleep. We couldn't be more excited to see how the newest members of our extended family introduce Viscosoft to more people in need of a great night's sleep.

Viscosoft's Crowdfunding Campaign Has Launched 🌠

2 months ago

Investors,

For over a decade, Viscosoft has quietly pursued its mission of providing consumers a better way to great sleep.  We've seen a modest and motivated group of founders grow into an impressive team of engineers, merchants, and marketers across four continents and seen our brand become one of the most recognizable in our category.

September 17th begins a new chapter in company history.  We have officially begun accepting outside investment partners to help us continue disrupting the $432B sleep & sleep technology industry.

We're energized by the opportunities ahead, encouraged by the support of thousands of customers, and honored by the consideration and confidence of the StartEngine investment community.

Sleep Well,

The Viscosoft Team

 

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