Invest in Pivotal Health

Launched in late 2023, Pivotal Health's Direct Care for Employers offers companies a low monthly fee per employee, allowing their workforce and families to schedule house calls for just $25. Pivotal Health is establishing channel partnerships with benefit brokers to help sell Direct Care for Employers.

After launching in 2021, Pivotal Health quickly went viral at the University of Wisconsin-Madison. University Health Services at most campuses are closed evenings and weekends and students struggle to get the personalized care they and their parents want.

Pivotal Health has an aggressive expansion strategy focused on metro areas with populations greater than 500,000 with a large university population. Potential expansion metros include Minneapolis, Ann Arbor, Columbus, Cincinnati, Austin, Phoenix, Boston, Raleigh-Durham, Los Angeles, and more.

Pivotal Health is raising a $2 million round to expand to more metro areas and to increase sales and marketing in our current metro areas. The company has already raised $2.3 million from VCs, family offices, and angel investors in previous rounds and $900,000 in this round. Pivotal Health is seeking $1.2 million from this crowdfunding round to close the round.

The capital will primarily be used for

• sales & marketing;
• expansion to more metro areas; and
• working capital.

Healthcare is the biggest sector in the U.S. economy. It represents over 17% of GDP and employs more workers than any sector. The sub-sectors of primary care and urgent care are multi-billion dollar market opportunities where key stakeholders — providers, patients, employers — are not happy with the status quo. It is ripe for disruption.

You are investing in a Simple Agreement for Future Equity or SAFE. It acts like a convertible note but it is not a debt instrument. The SAFE investors will automatically convert to equity or shares at the company's first priced capital raise round or at sale of the company, whichever comes first.

In this SAFE, the post-money valuation cap is $9 million. There is also a 20% discount. This means that the SAFE investors will convert to shares or equity at a maximum valuation of $9 million or get a 20% discount into the next round (or sale) - whichever is better for the investor. For example, if our next round is at a valuation of $8 million, the investors in this SAFE will convert to shares at a valuation of $6.4 million (20% less than $8 million). If our next round is at a valuation of anything above $10.8 million (20% more than $9 million), the investors in this SAFE will convert to equity or shares at a valuation of $9 million. If the company is sold before raising a next round, the SAFE investors will convert and get shares (and thus a share of the exit) with the same math as described above.

You can find more info on SAFEs here: https://wefunder.com/updates/139885-safes-101

Technology-enabled healthcare services companies have diverse exit opportunities when they achieve success. Over the past decade, exit valuations have spanned a wide range, from modest multiples of 2 or 3 times top-line revenue to substantial premiums exceeding 20 times top-line revenue. This variation is influenced by several key factors, including the company's revenue, revenue growth trajectory, strategic positioning relative to potential acquirers, and comparable valuations in the public markets.

Pivotal Health's management team brings extensive experience, industry connections, and a strong motivation to pursue a favorable exit for investors. However, it is important to note that with any early-stage investment, there can be no guarantee of returns.