A technology-enabled quit smoking solution aiming to transform the life of smokers forever.
Business overview
| Location | Berlin, Germany |
|---|---|
| Social media | |
| Website | en.nuumi.de/ |
| Sectors | Healthcare Digital Mixed B2B/B2C |
| Company number | HRB 213078 B |
| Incorporation date | 19 Oct 2019 |
Investment summary
Business highlights
- 50 users with highly positive feedback
- Awarded as impact startup at the 2021 Web Summit in Lisbon
- Experienced team with previous exit & visiting Harvard Professor
- Supported by the EU & IBB w/ an innovation program of up to €1.5m
Idea
Introduction
nuumi aims to solve the #1 cause of preventable death by transforming the lives of over one billion smokers for good through leveraging the latest technology, behaviour science and refine it by integrating artificial intelligence.
With an average of 6 to 8 attempts to quit smoking successfully, today's quitting methods have proven to be ineffective. Electronic nicotine delivery devices are the preferred choice by smokers to quit in the UK & Germany. So we thought, why don't we leverage the consumer's preferred option and turn this into a smart solution that follows medical advice?
nuumi combines a technology-enabled nicotine replacement and behaviour therapy to treat both the physical and psychological elements of addiction.
An intelligent vaporiser that gradually reduces nicotine intake and a companion app with a behaviour change program. A user-friendly solution that, unlike most quit methods, eliminates physical and psychological withdrawal symptoms*.
*based on testimonials from Beta users
Substantial accomplishments to date
In less than 12 months after receiving the first funds we turned a complex hardware/ software idea into a product that's currently in beta stage with 50 test users and 150+ beta testers on the waiting list.
Based on our market research, we believe we are one of the first three companies (none of them are live yet) to follow medical advice, developing an out-of-the-box solution that combines a nicotine replacement with a healthy lifestyle as well as behaviour therapy.
We are an experienced team and advisors of serial entrepreneurs with previous exits (7mind - Germany’s most popular meditation app; Yopeso), a visiting Harvard Medical School Professor, a CTO with over 8 years of experience in machine learning as well as leading industry experts.
For our innovative approach as well as social impact, we are supported by the Investitionsbank Berlin and European Union with an innovation program of up to €1.5m.
We have been awarded as ‘Impact Startup’ at the 2021 Web Summit in Lisbon.
We secured partnerships with leading research institutions such as The Charité Berlin, one of Europe's most renowned university hospitals and one of Germany's most research-intensive medical institutions.
Monetisation strategy
Our program is on average 10-20% cheaper than what smokers spend daily on cigarette consumption and consists of subscription and transaction fees.
1. Transaction fees
a. Sale of starter-kit for €74.90
b. Upselling through teleclinic feature from Q4 2022 via video consultation
2. Subscription fees
a. Smoking cessation program of €58-€128/ month (app + pod subscription)
b. Health promotion program of €99/ year (once a complete stop has been achieved)
Phase 1: B2C (Q2 2022)
Product launched D2C via online store
Phase 2: B2B2C (Q3 2022)
Once the therapy program is certified as a prevention program, insurance companies in Germany will reimburse between €75 to €150 for both the behaviour change and health promotion program. This will enable us to distribute the product via insurances and workplace health promotion programs.
Phase 3: Medical B2B2C
Once the product is certified as a medical device (treatment unit) and listed as a DiGA solution, the product can be prescribed by doctors.
Use of proceeds
In preparation for our next round (target goal of €5m+) in Q1 2023, investment from our crowdfunding round will be used predominantly in three key areas:
GTM:
B2C/ direct to consumer product launch via our own online store in Germany in May 2022
B2B2C product launch via insurance companies as soon as our behaviour therapy program is certified as a prevention program (planned Q3 2022)
PRODUCT & TECH:
Continued releases of new product features and development of our machine learning technology to coach smokers even better
Fund first mass production order to launch product (planned Q2 2022)
CLINICAL STUDY & MEDICAL CERTIFICATION:
Completion of the first clinical study to have a validated quit rate (our target is to achieve a quit rate that is 3-5x higher than the golden standard method)
Certification of behaviour therapy program as a digital prevention program
Certification of intelligent vaporiser and app as medical device (treatment unit)
Key Information
Convertible Loan Note
The company has two outstanding Convertible Loan Notes.
The principal amounts of these agreements have been factored into the pre-money figure of the campaign. The amount accrued under interest has not been factored in, as this will depend on when the conversion occurs.
The terms of these Convertible Loan Notes are as follows:
1. €124k loan from individuals on the below terms:
- Discount: 25%
- Interest: 6%
- Valuation Cap: €3,000,000
- Longstop: 30th June 2022
- Share Class: Preferential Shares
2. €120k loan from individuals on the below terms:
- Discount: 20%
- Interest: 6%
- Valuation Cap: €4,500,000
- Longstop: 30th June 2022
- Share Class: Preferential Shares
Conversion of these loans will be triggered as part of this round through one of the three scenarios below:
a) Qualified Financing: Means the Company raising €500k through a bona fide equity financing round. The loan will automatically convert to equity if this campaign raises over €500k.
b) Non-Qualified Financing: IN case the Loan has not been converted until the Maturity Date or in case of a termination of the loan, the amount of shares, the Lender is entitled and obliged to subscribe for in case of a Forced Conversion shall be calculated as follows: The purchase price per share (with a nominal value of €1.00) corresponds to the pre- money-valuation of the Company of €1,000,000.00 (“Forced Conversion Valuation”) divided by the amount of the share capital of the Company on the date of the Forced Conversion. The Lender will subscribe for as many shares as resulting by division of (A) the Conversion Amount by (B) the deviation between the purchase price of this section and €1.00. The number of shares to be subscribed is to be commercially rounded.
c) In the event of an exit, the lender is entitles to choose between receiving a certain exit premium or converting the loan.
Fractional Shares
Please note that the share price for this round is €3,107. Due to this high share price, we have decided to allow investors to hold fractional shares. This means that we have reduced the investment multiple to €31.07 (representing 1/100th of a share), with the minimum investment being €31.07. As these shares will be held via the Seedrs Nominee, fractional entitlements are possible.
Share Classes
The company has two share classes, Ordinary Shares and Series Seed Shares.
Investors into this round will receive the Series Seed Shares, which have the same rights allotted to Ordinary shares, as well as additional rights including 1x non participating liquidation preference, and anti-dilution protection.
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