|1||Company leadership has 2+ decades experience deploying same proven techniques used by virtual coach.|
|2||20+ million people in US suffer chronic poor sleep each year. Sleep stress is much higher in 2020.|
|3||Cost effective: Virtual Sleep Coach service delivered with high margins whenever, whereever needed.|
|4||Self-paced platform where users advance when reach mastery. Affordable: 3 online payments of $30.|
|5||Launch: Oct '20. Project 20,000 users 1st 12 months (US market share = 0.1%). Scale to 5% in year 5.|
|6||B2B Sales Channels: Large employer benefits programs; Referrals from healthcare practices.|
|7||B2C Sales Channels: Social media ads; Search engine ads.|
We’ve been engaged in early stage investment for almost
thirty years. Scale of services, size of market, strength of leadership and
future product pipeline are key elements in our investment decisions. We
routinely pass on the vast majority of opportunities. However, Sleep Better Foundation checked all the boxes for us.
A systematic assessment of the market of individuals with poor sleep and the existing clinical strategies substantiated our decision to invest
in Sleep Better Foundation. Specifically, over 80 million people in the US
suffer from acute insomnia every year and there is a decade of clinical science documenting the effectiveness of cognitive behavioral techniques for improving outcomes.
We were impressed with the capacity to scale their business. A virtual coach solution eliminates three of the most common barriers to access
for individuals suffering from poor sleep seeking care: (1) Delivery of service in proximity to the problem, literally when they are struggling to sleep; (2) The high cost of typical human-to-human engagements, cost of ongoing services for virtual coaching is space on a digital server; and (3) Finding the coach / counselor that matches the personality of the customer. Digital platform programming allows the user to select any virtual coach on any given day and not miss a beat in service. Moreover, virtual coaches provide a platform that can easily adopt any language and thereby rapidly enable literal worldwide access.
Future products was also a strong factor in our decision to invest. In an environment where mobile access is spreading in every meaningful market, Sleep Better’s platform is perfect to enable future expand
into other large markets where structured human engagement offers solutions to every day issues. Healthcare treatment compliance and education offer two large markets where a virtual coach could have a tremendous impact on quality of life. For example Sleep Better’s second product waiting in the wings is PAP therapy compliance for patient suffering from Sleep Apnea. Another market, which addresses tens of
millions of people in the US alone. Education is another excellent example. It’s easy to grasp how virtual coaches can supplement basic academic topics for children of all ages. But, imagine the role virtual coaches can play one day in adult reeducation and employee training in all market sectors.
Sleep Better leadership backed by their clinical team of virtual Sleep Coaches.
For Dr. Joe Dzierzewski the idea for our company followed a decade-plus pursuit of helping people who suffer from poor sleep by offering face-to-face coaching in a live setting. A light bulb went off while speaking with an experienced investment fund manager one day about the daily challenges confronting our face-to-face service. Highly scripted protocols were ideal for an online execution via a virtual coach. It was an incredible realization: Online sessions with a virtual Sleep Coach would allow me to overcome a host of challenges we typically experienced with live, face-to-face engagements. Coordinating multiple schedules, negotiating the cost of service, managing around clients who were struggling with the pace of care, and perhaps the most important of all, being available whenever and whereever the client truly needed our attention.
You might wonder why a virus is relevant to our engagment?
Challenges surrounding Covid19 elevated the project to the top of our plate. During the past month we've made excellent progress.
We all spend one third of our life sleeping. When sleep breaks down, our physiological and psychological systems are quick to fail. Our immunolgical system is refreshed each night by quality sleep. Science has shown we are significantly more likely to succomb to viral attack after a little as one night of poor sleep. Our virtual Sleep Coaches like Maria, who is shown below, share these stories with our members in a series of engaging animated sessions.
Brad Dillman, our VP Business Development, shared his appeal to join the company, "I've been in the healthcare industry for decades and played important roles in strategic development and sales for both Medline Industries and Cardinal Health. Despite my previous successful development of a $20 million territory, I've never been more excited about an opportunity than since I joined the Sleep Better team." Brad's initial targets will be B2B engagements with large employer benefit programs and B2C via social media and search engine ads.
The US market is huge and there is a significant gap in service for those suffering from chronic poor sleep. Using virtual Coaches we can scale services in any language and expand to new countries in weeks, once the platform is launched.
On behalf of the entire team at Sleep Better Foundation, we sincerely hope you will elect to invest in our venture. Here's how we'll use the monies we receive.
The capital raise allows the company to realize the following benefits:
Fully fund engagement of professional actors for voice over of the animated virtual coaches and completion of software release of virtual sessions via encrypted, protected hosting platform capable of serving millions of potential users in the US.
We anticipate initial product release in October 2020.
Initial release will feature virtual sleep coaches fluent in English and Spanish. Other languages will follow, allowing company to expand service targets to additional countries.
Funds from the raise will allow the 18 month runway necessary to realize a profitable, cash flow positive status for the company.
Sleep Better Foundation has financial statements ending December 31 2019. Our cash in hand is $18,720, as of April 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $6,481/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Online sessions delivered on demand by virtual Sleep Coaches to help people overcome problems falling asleep or staying asleep. Users can select from a team of our virtual Sleep Coaches, who speak English and Spanish fluently. No schedules to coordinate. Immediate user access to a coach 24/7. Same cost per user regardless of the time taken to complete user self-paced programming. List cost is $90. B2B contracts and online offers will enable complete virtual coaching services for discount prices.
We hope (but not guarantee) to be serving millions of people who are suffering from sleep problems in every country by using virtual Sleep Coaches, who are fluent in every language across the world.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Sleep Better Foundation, LLC was incorporated in the State of Virginia in September 2016.
Since then, we have:
Historical Results of Operations
Our company was organized in September 2016 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $100,000 in equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Sleep Better Foundation, LLC cash in hand is $18,720, as of April 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $6,481/month, for an average burn rate of $6,481 per month. Our intent is to be profitable in 6 months.
Since the date that our financials cover, we have continued to be principally focused on the development of the final version of our online virtual sleep coach. We have no changes in our prior trends.
We predict needing a total of $50,000 to go to market, which we expect to happen 6 months after the close of this Offering. Our plan is to conduct a second future raise on product launch to expand the customer acquisition process. Once we launch the service platform, we project first year revenues by month to be:
Month Num Users Revenue
Month 1 500 $10,000
Month 2 620 $12,400
Month 3 769 $15,376
Month 4 953 $19,066
Month 5 1,182 $23,642
Month 6 1,466 $29,316
Month 7 1,818 $36,352
Month 8 2,254 $45,077
Month 9 2,795 $55,895
Month 10 3,465 $69,310
Month 11 4,297 $85,944
Month 12 5,329 $106,571
In order to hit our 12 month projections, we predict we will incur approximately $500,000 in expenses.
Outside of the funds raised from this Offering, we can rely on friends and family for additional capital.
Our future success is related to people electing to use our virtual coaches to address challenges with falling asleep or maintaining sleep.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
Joe Dzierzewski, Ph.D. is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
An investment in the company is speculative, and as such is not suitable for anyone without a high tolerance for risk and a low need for liquidity. You should invest only if you are able to bear the risk of losing your entire investment.
The company’s industry is highly competitive, and the company may not be able to compete effectively against the other businesses in its industry.
Issuance of additional company equity securities at prices dilutive to existing equity holders.
The company's first product hasn't gone to market, yet. They may not be able to launch an effective service.
The company is reliant on consumer's adopting the concept of a virtual coach to replace human-to-human interactions.
Regulations may change regarding the requirements for delivery of services for sleep related challenges.
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