Smilelove

Smilelove

Direct-to-consumer clear aligner treatment for straightening teeth. 

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Security Type
Crowd Note
Categories
Other
Min Investment
$1,000
Offering Date
September 29, 2018
Expected Close Date
December 28, 2018
Target Raise
$500.00K-$2.00M
Deal Notes

Round type: Seed Round size: US $2,000,000 Minimum investment: US $1,000 Target Minimum: US $500,000 Maximum Raise Amount: US $2,000,000 Security Type: Crowd Note Conversion discount: 20.0% Valuation Cap: US $9,000,000 Interest rate: 5.0% Note term: 24 months Closing conditions: While Smilelove has set an overall target minimum of US $500,000 for the round, Smilelove must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to Smilelove's Form C. Regulation CF cap: While Smilelove is offering up to US $2,000,000 worth of securities in its Seed, only up to US $1,070,000 of that amount may be raised through Regulation CF. Transfer restrictions: Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available. Raised to date: US $33,000 US $8,000 (under Reg CF only)

Company Description

Direct-to-consumer clear aligner treatment for straightening teeth. Smilelove is bringing the benefits of straight teeth and a confident smile direct to individual consumers. Customers can enjoy the benefits of our product in the comfort and privacy of their own home, without sacrificing any dental expertise. We offer step-by-step instructions and outstanding customer service to walk each customer through the entire process. Our product is made of the clearest material on the market, minimizing discomfort and maximizing the cosmetic benefits of our aligners. Smilelove offers the lowest price point in the industry. The ProblemOne-third of US adults (~80mm) are unhappy with their smile(American Assn of Orthodontics)8% of Americans ages 18-24 have untagged a picture of themselves on Facebook because they didn’t like their smile (American Assn of Orthodontics)Only 4 million people are presently undergoing orthodontic treatment in the US (American Assn of Orthodontics) due, in part, to affordability issuesCurrent teeth straightening treatments are costly and time-consuming, averaging $5,000 - $7,400 with multiple visits (Oral B)The Smilelove SolutionTechnological advancements allow  us to provide superior orthodontic treatment and an enhanced cosmetic experienceLimited overhead and overseas manufacturing reduces our costs significantly, allowing Smilelove to pass along savings to consumers that would find traditional orthodontic treatments out of reachEach treatment is approved by a licensed dentistSatisfied customers like their new look and are inclined to sign up for ongoing Smilelove services including monthly teeth whitening treatments and annual retainers

Perks

$1,000 ("Starter") - Free whitening treatment
$10,000 ("Premium") - Half off aligner treatment + free whitening treatment
$20,000 ("Bronze") - Free aligner treatment + free whitening treatment
$50,000 ("Silver") - Everything in "Bronze" + dinner with management + quarterly management calls
$150,000 ("Gold") - Everything in "Silver" + 2 day ski trip for two at Snowbird Mountain Resort - One of the world’s best ski areas. Guided skiing by local experts (Smilelove founders) on the best terrain and best snow found anywhere. Includes airfare from anywhere in the US. 2 nights stay at The Cliff Lodge at Snowbird.
$250,000 ("Platinum") - Everything in "Silver" + 4 day Lake Powell trip for 2 on a houseboat with Smilelove team and other investors. Wake surfing, water skiing, wave runners, great food, unparalleled beauty. See video for a taste of what Lake Powell is all about. Includes airfare from anywhere in the US.
Option to waive perk and instead donate the value of the gift to Operation Smile.

Key Deal Facts

Over $1 million in revenue and 1,000 customers serviced since launching mid-2017
Gross margins of over 50%
Royalty agreements in place for licensing in both Canada and Hong Kong
Serial entrepreneur founders who have self-funded business to date
FDA approved, with a 4.7 star rating from ShopperApproved.com (over 365 reviews)

Use of Proceeds

  • If the Company raises the Target Amount, it will use 44.50% of the proceeds, or $11,125, towards offeringexpenses;
  • If the Company raises the Closing Amount, it will use 9.35% of the proceeds, or $46,750, towards offeringexpenses; and
  • If the Company raises the Maximum Amount, it will use 8.36% of the proceeds, or $89,500, towardsoffering expenses

Management Team / Advisory Board Bios

David Frazier
Co-Founder
Former VP Finance @ LendioFormer CFO @ InXpress - Ecommerce and franchise shippingFormer CEO Clearstone Windows - Uber business model for Window Cleaning.

Spencer Grider
Co-Founder
Former Senior UX Designer @ Lendio and BackcountryAdvisor/owner of online subscription business Little Poppy Co - $0 to $6M annually in 3 years.

Deal Notes

Round type: Seed Round size: US $2,000,000 Minimum investment: US $1,000 Target Minimum: US $500,000 Maximum Raise Amount: US $2,000,000 Security Type: Crowd Note Conversion discount: 20.0% Valuation Cap: US $9,000,000 Interest rate: 5.0% Note term: 24 months Closing conditions: While Smilelove has set an overall target minimum of US $500,000 for the round, Smilelove must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to Smilelove's Form C. Regulation CF cap: While Smilelove is offering up to US $2,000,000 worth of securities in its Seed, only up to US $1,070,000 of that amount may be raised through Regulation CF. Transfer restrictions: Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available. Raised to date: US $33,000 US $8,000 (under Reg CF only)

Amount Raised : $555,125
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Security Description

A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.

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