Hale is on a mission to end nicotine addiction. Through our consumer facing device, we combine smoking cessation science with an elegant full stack hardware+software solution to help people quit easier than anything else on the market. Hale's algorithm adapts for each individual smoker to achieve a high efficacy rate and reduce the millions of deaths related to smoking every year.
Venture Highlights
Highlights
Closed $2M in a Pre-Seed round with a number of notable investors participating; Village Global, The Venture Collective, Backstage Capital, Todd Jackson (First Round Capital), Peter Moran (DCM Ventures) and more.
Built out hardware+software for the solution (molds done).
Submitted multiple patents. Design patent issued.
Met with both the FDA and MHRA in regards to our regulatory path to approval (MHRA is excited about the solution and we have a rapid path to market in the UK).
We've put together a strong advisory board including an ex-FDA member, Chief Physician for State of Delaware, tobacco dependence doctor from Moffitt Cancer Center.
Signed partnership with Broughton Nicotine Services, the leading Nicotine Regulatory Consulting Firm in the EU. They've never done this with over 50 companies they've worked with.
We will be selling the device for an estimated $50-$60, which requires a subscription to our mobile app at a cost of $20-$100 / per month depending on the level of smoker you are. This subscription will also include free replacement capsules that will be sent automatically to the user. The pricing is based on what cigarette and vape smokers are currently paying in the market for cigarettes, pens, pods and/or nicotine replacement therapies such as Nicorette gum.
There are currently 51 million smokers and e-cig users in the US & UK with 33 million of them actively trying to quit. Capturing a fraction of this market, 4%, with an average user on our pricing model, including churn, leads us to approximately $400,000,000 in ARR with $40,000,000 in yearly device sales - and a clear path to a multi-billion dollar opportunity.
If you look at comparative products such as Chantix, Nicorette and Nicoderm - they are all doing billions in revenue yearly and they are horrible side effects and low success rates. We anticipate having a much higher quit success rate with minimal side effects, so it's entirely possible we disrupt these products and take over the market.
Competitive Advantage
Quote
Current nicotine replacement therapies such as Nicorette, Nicoderm, and Chantix have low cessation success rates (8-11%) because they don’t handle the most important variables in smoking cessation; self-control and nicotine delivery. They put the onus on the patient to manually dose themselves down and don’t deliver nicotine as rapidly as a cigarette - this increases withdrawal symptoms and relapse rates.
Furthermore, these other solutions don’t give smokers what they’re used to: specifically oral fixation, smoke inhalation or custom physiological satiation (easy to give up at anytime). We can tailor each individual’s use accordingly with no patient input no matter the situation or addiction level - allowing them to completely forget about the cessation process, and driving the highest cessation success rate in the market.
With Hale, there’s no more chewing gums. No ugly patches. No dosing yourself down. No pills. Just smoke whenever and however you want, and pay us less than you would pay for any other cessation solution.
Revenue
Revenue To Date
N/A
MRR
N/A
Revenue YTD
N/A
Burn Rate
N/A
Users
Total Users
N/A
Total Users (Past 30 Days)
N/A
Daily Active Users
N/A
Monthly Active Users
N/A
Total Paying Users
N/A
MoM Growth Users
N/A
Organic Traffic %
N/A
Customer Costs
CAC
N/A
LTV
$400.00
Churn
N/A
Margins
N/A
Go-To Market Strategy
Business Strategy
Once approved for sale by the FDA, we can make claims of cessation that no other vaporizer on the market can legally make. For other NRT (nicotine replacement therapy) forms, such as Nicorette, that can make cessation claims their numbers are so low that touting them would actually be a detriment to their brand. If we execute, our marketing would be centered around being the first FDA approved vaporizer device for smoking cessation and/or nicotine de-addiction and our ability to accomplish it, i.e. "Hale's vaporizer system is 50% more effective at nicotine de-addiction than the leading nicotine replacement therapies on the market", or "1 in 3 cigarette smokers are able to quit in 8 weeks after using Hale." Those are powerful statements that can only be made after going through a regulatory process.
Using those statements, and our branding, we will use online and traditional channels (TV/radio/billboards) to get the word out about how to help people end their addiction. We'd also look to partner with organizations such as Truth, rehabilitation centers (a lot of addicts are cigarette smokers), and even corporations (smokers cost co's $6k+ a year).
On a separate note, if we are approved for Rx for under 21, we can push this through medical practitioner offices. We've already heard from a number of doctors that parents are coming in and asking for ways to help their kid quit e-cigs, we would be the only solution a doctor could professionally suggest.
Team
Competitive Analysis
Competitive Analysys
Our incumbent competitors include Nicorette, Nicoderm and Chantix – the gum, patch and pill. These products are doing 9 - 10 figures in revenue globally. However the success rates are abysmal. Nearly 5 decades of medical research has failed to produce a pharmaceutical intervention that results in permanent cessation in even a substantial minority of users. We are creating a safe, first-of-its-kind FDA-approved NRT vaporizer intended for true cessation that will vastly outperform the patch, gum and pill, creating a new multi-billion dollar product category.
Newer competition includes companies like Lucy (gum), Quit Genius (app) and Carrot (breath sensor + app) that are taking different approaches, but none that are utilizing an automatically weaning drug delivery system which solves one of the most important aspects related to quitting - the physiological difficulties of nicotine dependency.
We are open to meeting up to grab a coffee, or just to chat.
We would really enjoy your feedback and insight into our venture and would be happy to discuss anything that you are currently working on to see if we can be of service!
Share
TAM SAM SOM
TAM
$150B
SAM
N/A
SOM
$20B
Business Stage
Business Stage
Seed
Business Type
Business Types
Venture Capital Backed, Investor-Backed
Categories
Biotechnology
Healthcare
Think a friend might be interested in this?
Enter their email to share it with them!
Please wait while your One Pager is getting created