# Audicus

The pioneer in telehealth for hearing loss, providing customized hearing aids and care for 70% less.

- Canonical URL: https://wefunder.com/audicus
- Entity ID: wefunder:company:157131
- Last updated: 2026-06-10T05:01:23Z
- Generated at: 2026-06-10T12:03:46Z

## Quick facts
- $14M gross revenue run rate, $10M annually reoccurring. HQ'd in New York City
- Subscription revenue growing at 65%+ yoy, with over 4x LTV/CAC
- Team from MIT, Stanford, McKinsey, P&G, Bose & Bain Capital. 4 out of 5 VPs are former founders
- 4.7 star rating on 9,000+ reviews, $100M+ in saved hearing aid costs, 100,000+ better hearing ears
- $8B+ market with huge growth tailwinds from recent FDA deregulation towards Over-the-Counter (OTC)
- High capital efficiency: $7M raised from TIA Ventures, Howzat, Flatiron Health & Onemedical founders
- At cusp of EBITDA profitability. Projecting cash-flow positive by end of 2024
- 40%+ of recurring revenue from sticky partnerships with government programs (Veterans, Medicare/aid)

## Active fundraises
- wefunder:fundraise:116240: 4(a)(6) successful (USD)
- wefunder:fundraise:116239: 4(a)(6) successful (USD)

## Story
Audicus is on a mission to eradicate hearing loss, by making hearing aids and hearing care accessible and affordable to everyone. Hearing is one of our five senses and losing it disconnects us from our loved ones and the world. Yet, like so many areas of healthcare, hearing aids are prohibitively expensive and inaccessible to most. We believe that everyone deserves to hear, connect and age in good health - which is why we've created Audicus, a leading telehealth solution for hearing aids. We have pioneered the process of remotely testing your hearing, ordering customized hearing aids online and receiving telehealth support - all for 70% less. We are addressing a massive, under-penetrated market opportunity (+$8Bn) and are transforming thousands of lives for the better.Hearing loss is highly debilitating, creating a large & growing marketHearing loss is an isolating condition that cuts us off from the world and our loved ones. If left untreated, hearing loss can lead to dementia, cognitive decay and depression. Hearing loss affects over 40M Americans, mostly comprised of veterans and those above the age of 50.While there is no cure for hearing loss, hearing aids can be a highly effective solution for many. However, due to prohibitive out-of-pocket cost and an arcane delivery model, only one in four people with hearing loss own a hearing aid. Most hearing aids in the US are dispensed through traditional, brick and mortar hearing clinics ("audiologists"). The process is lengthy, requiring in-booth diagnostics, recommendation, customization, fitting, follow ups and support. A pair of hearing aids will cost on average $5,000 and is often paid of pocket by the patient, since insurance coverage is sparse. The reason hearing aids are so expensive, is not because of the technological complexity of the devices, but rather due to retail markups - or middlemen costs - imposed by audiologists.With the goal of creating more access for consumers, the FDA introduced a major piece of deregulation in October 2022: the OTC hearing aid act, making hearing aids available "Over-the-Counter" - analogous to the eyecare industry's introduction of "OTC reading glasses" in mass retail.This has created a massive opportunity to tackle a large, under-addressed $8Bn market with a tech-enabled solution that brings down those adoption barriers.Audicus will lead the new market expansionAudicus is a leading tele-audiology solution for both consumers (60% of revenue) and organizations (40%). We have pioneered the process of remotely screening hearing loss, customizing hearing aids, and providing telecare support - all at a fraction of the cost and time.Our proprietary hearing test can be done in 15 minutes with any headset and is free of charge. The test can be used to customize a hearing aid, which is then delivered to our users by mail. Most importantly, our team of specialists and audiologists are proactively providing telecare support - and are even able to adjust hearing aids remotely through our app.For more on how our hearing aids work, watch our product demo!Why our users love AudicusAudicus' track record is second to none: we have amassed over 10 years of experience as a pioneer in tele-audiology, crossing major milestones:100,000+ better hearing ears 300,000+ hearing screens conducted$100M+ in total saved hearing aid costs since inception With 9,000 user reviews and a 4.7/5.0 star rating, our customers particularly love:Our tele-health support process, infrastructure and team, comprised of audiologists, product specialists and support expertsThe convenience of our hearing test and remote hearing aid adjustment featuresOur cutting-edge hearing aid technology is sourced from the #1 manufacturer and has won multiple design awards over the years Audicus hearing aids are best in class and have won multiple design awards over the years.A structural price advantage without compromising on quality of hearing care Our model combines scale, technology, and process efficiencies, so we can offer a tailored hearing solution for a fraction of the price. Our approach removes the traditional audiology markups and passes on these savings directly to our end-users.As a result, our users receive cutting edge hearing technology and support - with great patient outcomes - all for a fraction of the traditional cost of care. We already have significant market traction2023 gross revenue of $14M (a 32% 4 year CAGR). Approximately 70% of revenue is reoccurring and as of Q124, translated into a run rate of about $10M ARR. 2023 net revenue of $12M projected to grow at 40%+ in 2024. Net revenue is after all discounts, promotions, returns, cancellations, and refunds.Thanks to high gross margins, we are quickly approaching EBITDA profitability in Q3 of 2024.We are extremely efficient: everything we have built to date was accomplished with $8M in capital. High focus on sustainability, metrics and ROI, are deeply rooted in our culture and trace back to our bootstrapped beginnings, where capital efficiency was vital. Audicus has diversified its revenue across two divisions: Consumer (60% of revenue)B2B partnerships (40%)In 2023, the Consumer division experienced a sharp uptick in user growth thanks to the launch of Audicus Premier, our award-winning "hearing as a service" subscription model. It drastically reduces the upfront price barrier for hearing aids, with a unique value proposition: users get advanced hearing aids, expert care, warranties, and supplies - all for $49/month per device (plus an activation fee). Premier has been complementary to our traditional buy-to-own model and has significantly accelerated our ability to acquire customers sustainably: Recurring subscription revenue has increased 65%+ year-over-year (as of Apr '24)... and CACs are 40% lower across the entire B2C divisionThe rapid recent growth in Premier was driven by:i.) Word of mouth from existing customers, earned press coverage and awardsii.) A dedicated product specialist team to sell and provide churn supportiii.) Smart allocation of paid media budget Over the long run, Premier has a significantly higher LTV than the upfront purchase model - and thus much better contribution margins. While Premier's subscription payments over time to have an initial negative impact on working capital when compared to upfront sales, we achieve breakeven around 7-8 months and quickly see a financial advantage thereafter. The model has also allowed us to transition from a pure eCommerce business towards a recurring model, with significant valuation upside.Audicus Premier, combined with the high reoccurring nature of B2B partnerships (e.g. Veteran Affairs, Medicare and Medicaid programs, etc.), has increased our total annual reoccurring revenue to account for ~70% of our business as of Q124.Reoccurring revenue streams are the fastest growing, the most profitable, the stickiest and also exhibit 4-7x LTV/CAC. Growing these revenue streams will be core use of this capital round. Our go-to-market strategy has two massive growth vectors: B2B partnerships and OTC/RetailWe have already started expanding into B2B Managed Care partnerships - and will accelerate it significantly Our B2B vertical is centered around developing turn-key hearing solutions for large organizations that need to provide hearing care to their patients. Our value proposition provides unprecedented:Cost advantages for patients and partnersEfficiency of care through convenience and speed, without compromising on qualityReach and expansion of coverage to under-addressed markets (e.g. rural areas, immobilized)These partners can span homecare companies, veteran organizations, senior care programs, or correctional care. We train our partner's local healthcare workers on how to administer our hearing test to their patients and subsequently have our in-house audiologists review the hearing tests, program the hearing aids and ship them to a partner location, where the support is done locally by the healthcare worker. Many of these organizations are directly tied to government funds and Audicus is often the only provider. This creates highly recurring, sticky and profitable revenue streams that can be maintained efficiently, with very few account managers.Note that totals are not guaranteedManaged Care constitutes a massive opportunity, on the order of $100M's of millions per vertical (Government, Medicare and Employers/Labor). Becoming dominant within just a few key partners could grow Audicus revenue several times over.Our existing Managed Care partnerships are centered around: Specialized Medicare & Medicaid programs (e.g. PACE, Long Term Services & Support)Correctional CareVeteran AffairsPACE stands for "Program of All-Inclusive Care for the Elderly" and provides medical and social services to elderly people still living in the community. Most PACE participants are dually eligible for both Medicare and Medicaid, which comes with a dedicated paid benefit for hearing aids. Audicus can provide hearing aids at a price point that allows a PACE participant to receive hearing aids without having to incur any out-of-pocket costs (i.e. it's covered by the program/plan).PACE was Audicus' first inroad into the insurance and managed care space and has laid the groundwork to expand into other Medicare/Medicaid areas and build a track record with government sponsored programs, such as the VA or Corrections.The Veterans Affairs (VA) is by far the largest single dispenser of hearing aids in the US. Hearing loss is the #1 disability among veterans and one in every four hearing aids goes to a veteran. The VA is a massive apparatus, comprising $100M's in dispensed hearing aid value per year. Our first partnership with the VA (started in November '23) consists of providing hearing evaluation support through our team of audiologists. Our VA business is ramping at a rapid pace and is expected to become a $2M ARR business by year end. After having established this proof point, we intend to push deeper into the VA through the provision of hearing aids and tele-audiology support.The other two massive opportunities are Medicare Advantage (MA) and Employer verticals, each $100M's in size, which will be central to our expansion strategy. Medicare Advantage in particular has started covering hearing aids through Third Party Benefit Administrators (TPA's) - the largest of which have become $300M revenue businesses. MA coverage will mature over the coming years, where insurers will look for far more affordable hearing solutions - especially with the onset of OTC. This is where Audicus has a massive opportunity to become the affordable and accessible go-to teleaudiology solution. A portion of this capital raise will be allocated towards building dedicated teams to pursue these two verticals head first.With a major recent regulatory shift, we are expanding into OTC/retailThe recent regulatory shift by the FDA in October '23 has created massive opportunities in physical and online retail. Some channels in particular, such as Big Box or Club Model retail (e.g. Costco, Sam's Club, Walmart) have established hearing aid proof points that make up $100M's in revenue. Costco alone is estimated to be a +$500M annual hearing aid business.Audicus could be an extremely efficient and effective model for new and existing retail players to streamline and accelerate their hearing aid divisions. Our first expected partner for this strategy is Sam's Club, currently a $130M hearing aid business, with centers in 100s of locations. Audicus will provide fast in-store, turn-key solutions that will make it much more efficient for Big Box retailers to scale up and operate their hearing aid vertical. Our virtual audiology model is more effective at supporting patients around the clock and on-demand and therefore freeing up capacity to focus on revenue-generation in each store. Our first pilot program stores are targeted to launch in Q3.Audicus is led by experts in the fieldWe have an incredibly talented team, comprised of MIT, Yale, and Stanford graduates, McKinsey, Bose, Bain Capital, RBC, P&G and Air Force alumni. In addition, 4 out of the 5 key leaders pictured below are former founders. Not only is our team highly capital efficient and data-driven, but also has dedicated hearing industry experience.Help us expand Audicus to accelerate our growth in recurring, profitable revenue verticalsAudicus is raising this capital round in order to invest in three high growth areas, which will accelerate recurring revenue and profits, as well as cash flow positive by the end of 2024:Accelerate growth of our subscription model (every subscription has a 7-8 month payback cycle)Expand our B2B managed care partnerships vertical, which will entail building out our leadership and executive team for government, Medicare Advantage and employer benefit programsLaunch a major retail partnership, with our current target of Sam's Club and opening the first store-in-a-store locations in Q324.Audicus has significant potential upside on its path to exit over the next 2-3 years, in large part due to three reasons:Our revenue acceleration potential from sticky managed care partnerships and retail partnerships can be massive. The Veteran Affairs alone or a single national Medicare Advantage player could multiple the size of Audicus. And Sam's Club's national store network alone is currently a $100M revenue business. Going from our current gross revenue of $14M to $50M in 3-4 years is realistic with such a strategy.Our revenue will become significantly more valuable, since it's increasingly more reoccurring and tied to defensible partnerships with sticky, large partners. This comes with significant exit multiple expansion (e.g. 5-10x revenue), relative to digital consumer/eCommerce multiples.As a result of the above, our profitability and cash generation will accelerate significantly, giving us more exit options (strategics & sponsors) and allowing us to pick the right exit timing.Note that the above are forward projections, and, as typical, are not guaranteed results.Hearing is integral to the human experience. It connects us to our friends, family and loved ones. We believe that everyone deserves to live a life filled with human connections and that there shouldn't be any barriers to good, healthy hearing. Hearing loss affects so many people that it is personal for many of us - like for me, who saw it with my own grandmother. Raising this community round ensures that everyone can contribute to solving this important.We would be excited to have you on board this important mission and transform not just an industry, but also millions of lives for the better.

## FAQ
1. **If you hit your goals here, how long do you expect it will be before your next round of fundraising? (We've gotten this question a few times, so posting on behalf of our investors.)**
   - We believe we will not need to raise more equity again after this round. Our projections are that we will reach profitability and be cash flow positive by the end of the year. We recently closed a venture debt deal and have drawn $2 million, and are hoping to raise in the neighborhood of $1 million in our current campaign. We believe the combination of those two will comfortably bridge the time to profitability, while also giving us enough flexibility to aggressively pursue our new growt...
2. **Hi there - do these preferred shares include a liquidation preference? If so, can you point to the section of the Form C or subscription that states this? Thank you!**
   - Yes, preferred shares have preemptive liquidation rights over Common shares. That statement can be found on page 12 of the Form C filing ("Document 1" on the SEC site). Thank you for the question!
3. **Your progress is noteworthy, especially in your rapid sales growth and successfully getting to profitability in the near term while selling your product at prices significantly below market incumbents. However, at this rate of growth, the competition will surely notice and res...**
   - Thank you for your comments and questions. You have actually hit on some interesting dynamics in the industry that have existed for quite a few years, and give us some barriers to entry from competition. As hearing aids generally require a certain amount of service during the selling process (audiology, testing, tuning, etc), the manufacturers themselves have traditionally stayed away from selling directly to consumers. They see their strength as the development and manufacture of ever-better...
4. **Are there any protections from being undercut by international (e.g. China) devices and services?**
   - Thank you, John - a good question. In short, yes, we see barriers to protect us on both fronts. First, on the product itself, where being undercut would primarily present itself as a lower price: When the deregulation in the over-the-counter ("OTC") market happened last year, we did, indeed, see several new entrants into the hearing aid market - primarily from lower cost regions, like China. However, the analogy I would draw to these products would be to the low-cost eyeglasses you can find a...
5. **Are you on pace YTD for $14m in 2024 revenue? What is your most recent ARR run rate? Would be helpful to hear back quickly as this is closing. Thanks**
   - Thanks for the question and having a look at our campaign, Yosef. Yes, our current projections for 2024 are to be right at $16.0m in Gross Revenue, and $14.8m in Net Revenue. Our current run rate in May for ARR is $10.5m, backed by continued strong growth in our B2B segment.

## Team
- Patrick Freuler (CEO/Founder)
- Steve Romine (COO)
- Logan Munro (CTO)
- Andre Sequin (CFO)

## Q&A
- Q: is it to late to invest?
- Q: Thanks for your response Andre. I'm glad you've thought through these things, and I'm frankly surprised that others haven't seen that this model is better for you and for consumers, if you can be profitable and grow while consumers get lower prices and can shop their preferred way (online whenever possible).
- Q: Your progress is noteworthy, especially in your rapid sales growth and successfully getting to profitability in the near term while selling your product at prices significantly below market incumbents. However, at this rate of growth, the competition will surely notice and respond. What stops established market leaders from dropping their prices or offering better deals to managed care providers or going direct to consumer or introducing lower priced versions of their leading products? If they do come after you, what differentiators or competitive advantage do you have that would allow you to defend your market position and continue growing?
  - A: Thank you for your comments and questions. You have actually hit on some interesting dynamics in the industry that have existed for quite a few years, and give us some barriers to entry from competition. As hearing aids generally require a certain amount of service during the selling process (audiology, testing, tuning, etc), the manufacturers themselves have traditionally stayed away from selling directly to consumers. They see their strength as the development and manufacture of ever-better technology. In turn, the manufacturers also typically sell their products to any buyer at roughly the same cost - us included. However, traditional audiologists need to support a lot more fixed costs in their practice - the building, staff, and their own income - which means they need to earn a higher margin and charge a higher price. Online players, on the other hand, don't face these same infrastructure costs, and can thus charge a lower price. So, why have we been around for 12 years while several of our online competitors have come and gone? This comes back to another competitive advantage of ours, and that which I consider our "super power" - With our own audiologists on staff and 12 years of experience, we have developed a service program that allows our customers to test their hearing, compare products, have their units tuned, and receive ongoing support (repairs, updates, cleaning, etc) at the highest level. This level of quality service is also how we continue to win customers on the B2B side - we have demonstrated that we can provide consistent and ongoing quality service to a large population of end customers. In short, we believe there is low risk to being undercut on prices, and that the replication of our model would take several years to develop the network of audiologists and service approach.
- Q: Greetings, I am interested in adding to my investment in Audicus. Would that be possible?
- Q: Are you on pace YTD for $14m in 2024 revenue? What is your most recent ARR run rate? Would be helpful to hear back quickly as this is closing. Thanks
  - A: Thanks for the question and having a look at our campaign, Yosef. Yes, our current projections for 2024 are to be right at $16.0m in Gross Revenue, and $14.8m in Net Revenue. Our current run rate in May for ARR is $10.5m, backed by continued strong growth in our B2B segment.
- Q: Are there any protections from being undercut by international (e.g. China) devices and services?
  - A: Thank you, John - a good question. In short, yes, we see barriers to protect us on both fronts. First, on the product itself, where being undercut would primarily present itself as a lower price: When the deregulation in the over-the-counter ("OTC") market happened last year, we did, indeed, see several new entrants into the hearing aid market - primarily from lower cost regions, like China. However, the analogy I would draw to these products would be to the low-cost eyeglasses you can find at any drugstore - they are of a far lower quality, and are not customized to the specific prescription of the consumer. With hearing aids, this problem goes far deeper - as customization of the frequencies is far more important, and the quality and features of a high-end product are vastly different from what is available in the low-cost market. (To be fair, if we found a top quality alternative that was available at a lower price, we would also be free to change suppliers - though we do not envision that happening in the near term.) The service component is where we actually see our "super power". With our own audiologists on staff and 12 years of experience, we have developed a service program that allows our customers to test their hearing, compare products, have their units tuned, and receive ongoing support (repairs, updates, cleaning, etc) at the highest level. This service is not easily replicable, and is also necessary in order to sell and support top quality hearing aids that are feature rich and highly customizable.
- Q: Hi there - do these preferred shares include a liquidation preference? If so, can you point to the section of the Form C or subscription that states this? Thank you!
  - A: Yes, preferred shares have preemptive liquidation rights over Common shares. That statement can be found on page 12 of the Form C filing ("Document 1" on the SEC site). Thank you for the question!
- Q: If you hit your goals here, how long do you expect it will be before your next round of fundraising? (We've gotten this question a few times, so posting on behalf of our investors.)
  - A: We believe we will not need to raise more equity again after this round. Our projections are that we will reach profitability and be cash flow positive by the end of the year. We recently closed a venture debt deal and have drawn $2 million, and are hoping to raise in the neighborhood of $1 million in our current campaign. We believe the combination of those two will comfortably bridge the time to profitability, while also giving us enough flexibility to aggressively pursue our new growth projects.