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Security Type
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Preferred Stock
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Categories
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Other
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Min Investment
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$1,000
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Location
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Mountain View, CA
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Offering Date
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September 28, 2019
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Expected Close Date
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June 19, 2020
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Target Raise
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$1.50M-$20.00M
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Deal Notes
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Round type: Series B Round size: US $20,000,001 Minimum investment: US $1,000 Target Minimum: US $1,500,000 Security Type: Preferred Equity Share price: US $3.4477 Pre-money valuation: US $65,000,000 Option pool: 2.36% Liquidation preference: 1.0x Raised to date: US $639,508
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Valuation
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$65,000,000
Company Description
Technology-driven, on-demand pharmacy providing free, same-day deliveryNowRx is a technologically advanced, customer-centric pharmacy delivery solution, utilizing a comprehensive array of communication devices including mobile apps, text, email, phone, fax, and voice-activated virtual personal assistants (e.g., Google Home), end-to-end robotic dispensing, and an advanced logistics platform that provides convenient, free same-day delivery for all prescription needs. NowRx is disrupting the pharmaceutical industry by replacing the traditional distribution model with an on-demand delivery model while providing a superior customer experience. By eliminating the dependency on store front retail space, NowRx operates out of micro-fulfilment centers resulting in a fixed cost at a fraction of the cost of traditional pharmacies. An end-to-end, fully automated dispensing process driven by robotics and artificial intelligence provides further cost efficiencies.For employers, NowRx can improve worker productivity by eliminating time employees spend having prescriptions filled off-campus. NowRx can also reduce overall health plan costs through better medication compliance.Through NowRx's platform, pharmacy services are provided from low cost, highly automated micro-fulfilment centers. NowRx utilizes end-to-end robotic dispensing (“One-Click Fill”) to deliver prescriptions directly to consumers by NowRx's drivers and plug-in electric vehicles. NowRx increases the likelihood of timely prescription fills, encourages medication adherence, reduces the number of missed refills, ultimately reducing costs to health plan insurers, and providing better consumer health. NowRx expects to transform the pharmacy delivery industry by providing nationwide free same day on-demand delivery of medical prescription drugs and OTC products, while improving the health of consumers by measuring and increasing prescription compliance.
Perks
For those who invest $1,000: Quarterly investor update emails
For those who invest $5,000: All the above plus Participation in annual investor call with CEO
For those who invest $10,000: All the above plus “Hydro Flask” with NowRx logo
For those who invest $25,000: All the above plus Yearly group video chat session with CEO
For those who invest $50,000: All the above plus Yearly one-on-one video chat session with CEO + Attendance at group leadership dinner in Bay Area, CA
For those who invest $100,000: All the above plus Participation in quarterly group investor call. + One-time private tour of NowRx facility with CEO
For those who invest $250,000: All the above plus Quarterly one-on-one video session with CEO + Attendance at annual private leadership dinner in Bay Area + Participate in annual private tour of a NowRx facility with CEO
Key Deal Facts
Annual Revenue Run Rate of $7.2mm (based on July 2019 revenue, unaudited)— Revenues for 2018 were $4.7mm, an increase of 89.9% as compared to 2017
The company has filled over 100,000 prescriptions and served more than 18,000 customers
More than 4,500 referring physicians, an increase of more than 84% since YE 2018
Scalable growth model: $40 customer acquisition cost vs. $300 customer lifetime value (physician referral channel)
Proprietary Pharmacy Management System, Quickfill v3, certified on Surescripts Health Alliance Network, a network that, according to Surescripts, handles 85% of pharmacies in the US
Use of Proceeds
Research & Development/Technology Development, Marketing & Sales, Expansion: Pharmacy Ops, General & Admin
Management Team / Advisory Board Bios
Cary Breese
CEO and Co-founder
Cary has more than 15 years experience in senior leadership and is a multiple time CEO, with expertise in technology, healthcare, and financial services. He is experienced in large Fortune 500 companies as well as small start-up environments. As an analytical thinker who excels at execution, creating organizational focus, and leading teams in a consultative management style, he is a versatile leader skilled in operations, with strong foundations in both engineering and finance. He is an Expert in Lean Startup methodology.
Sumeet Shoekand
CTO and Co-Founder
Technology executive with 19 years of experience. As an entrepreneur at heart, with a record of building solutions from ground up, Sumeet has built teams and led them from vision validation, to product definition, design, and delivery. He has wide-ranging technology and framework experience., and is interested in building businesses that will delight customers.
Deal Notes
Round type: Series B Round size: US $20,000,001 Minimum investment: US $1,000 Target Minimum: US $1,500,000 Security Type: Preferred Equity Share price: US $3.4477 Pre-money valuation: US $65,000,000 Option pool: 2.36% Liquidation preference: 1.0x Raised to date: US $639,508
