We exist to change minds about losing weight. Join our mission to eradicate obesity and type 2 diabetes.
Beringea is a transatlantic venture capital investor that’s invested in consumer companies such as Monica Vinader, Papier, and Thread.
- Close to £5.4m revenue in last twelve months*
- Backed by top VCs inc Beringea, Speedinvest, Connect & more
- 39% of users lower blood sugar levels below type 2 threshold
- Proven to be 2x more effective than competitor programmes
We (Mike and Chris) started Second Nature because we were frustrated with the status quo of the weight-loss industry: calorie counting, fad diets, and misleading nutrition advice.
We’re both scientists and after researching the latest nutritional and behavioural-change science, we were confident there was a better way: a way to make losing weight feel easier by building healthier habits.
Our app uses behavioural science with the aim of retraining your mind to make healthy choices automatic, so these stick in the long run.
After 8 years, we have extensive clinical data validating our programme; not only are we confident that Second Nature is a healthier and more compassionate approach to losing weight, we’ve also shown in a clinical study that we achieve more significant and more sustainable weight-loss results than other programmes.
Our vision is to become the world-leading provider of weight-loss services, and eradicate type 2 diabetes and obesity along with it.
Substantial accomplishments to date
• Second Nature is so effective that we’ve shown that we successfully lower almost 40 percent of people’s blood sugar levels below the type 2 diabetes range. This is the stat we’re most proud of, as when we started Second Nature the progression of type 2 diabetes was generally viewed as inevitable.
• After 5 years of work with the NHS - culminating in a publication in the British Medical Journal this year - we demonstrated that our 12 month weight-loss results were over 130% (2.3x) better than ALL the other 4 providers tested in a groundbreaking NHS national trial
• We're now commissioned nationally by the NHS across 2 national programmes with a further 14 local contracts
• In May 2022 our first major health insurance partnership went live with Vitality Health in the UK
• We’ve had over 150,000 people go through the programme, with a competitor-beating average Trustpilot score of 4.8/5.0
• Just under £5.4m revenue in the last twelve months*
• A diversified sales funnel: 80% B2C and 20% from long-term contracts with the NHS and private insurers (e.g. Vitality Health)
• Current CLTV:CAC of 3x with payback period of under 3 months (Aug-22) after recent operational improvements
• Team of 72 people (Sept 2022)
• Backed by top investors such as: Beringea, Connect Ventures, 500 Startups, Speedinvest, Calm/Storm, UNIQA Ventures, Taavet Hinrikus (founder of Wise), and Michael Pennington (co-founder of Gumtree).
(*based on unaudited management accounts)
We have built a resilient sales funnel in both B2C and B2B2C (NHS & health insurance):
• B2C: our programme starts at £49/month, which includes 1on1 support and group coaching from one of our team of fully-qualified UK Registered Nutritionists. New members join the Second Nature programme primarily through both digital ads (Adwords, Facebook, etc) and via organic / word-of-mouth.
• B2B2C: We provide Second Nature to the NHS and health insurers (notably, Vitality Health in the UK). We’re now working on expanding this to the US health insurance market with multiple pilots in the pipeline. We provide a mix of outcomes-based pricing & fixed pricing per participant depending on the customer.
Our favoured model is outcomes-based pricing, as we plan to achieve better outcomes than alternative solutions and can align incentives with our customers. Total contract value and price per member varies depending on location, volume, and length of programme provided.
Use of proceeds
We're now looking to grow in the UK and US by both accelerating our product development and accelerating our customer acquisition through our diversified marketing channels.
Our product development is primarily focused on building a more personalised and longer-term product experience for people with different health and weight-loss challenges, so we can support people for however long they need help for.
• To become the market-leading weight-loss brand in the UK by scaling our B2C offering
• To expand the number of NHS and health-insurance partnerships; enhancing our trust and brand presence in the UK
• To break into the health-insurance market. As of Sept 2022 we are in discussions to run 3 pilots.
• To build upon our early traction and continue to scale our B2C side of the business
The company currently has 5 classes of shares, Series A3 Shares, Series A2 Shares, the Series A Shares, the Seed Shares and the Ordinary Shares. All investors in this round, including Seedrs investors, will be receiving Series A3 Shares.
All share classes have full voting and equal dividend rights. The rights attached to the share classes on a liquidation or exit are as follows, listed in the order of preference:
1. Series A2 Shares and Series A3 Shares have a 1x non-participating preference: Series A2 and A3 Shareholders will receive their initial investment amount first (on a pari passu basis, as if they constituted one class of share);
2. Series A Shares have a 1x non-participating preference and the Series A Shareholders will receive their investment amount back second if there are proceeds available following the distribution to the Series A2 and A3 Shareholders;
3. Seed Shares have a 1x non-participating preference and the Seed Shareholders will receive their investment amount back third if there are proceeds available following the distribution to the Series A2, A3 and A Shareholders;
4. Any further remaining proceeds will then be distributed between the Ordinary Shareholders pro rata.
Please note that the Series A3 Shares are EIS eligible.
The Company has a £2,000,000 loan from a venture debt provider at an interest rate of 10% entered into in December 2021. The company has granted customary security protection in respect of this loan and it is being repaid monthly over 36 months.
The Company has an outstanding warrant instrument, entered into in 2021, which allows the warrant holder to subscribe for further shares at £1.18 per share, any time prior to (i) 3 December 2028 or; (ii) five years from the effective date of the Company's IPO.
The warrants currently represent 0.45% of equity on a fully diluted basis and have been factored into the pre-money valuation as set out above. Please note, the warrants also carry broad-based weighted average anti-dilution rights: the right to be issued additional warrants in the event of a future down-round in accordance with the above anti-dilution right.
Series A Shares and Series A2 Shares also have broad-based weighted average anti-dilution rights: the right to be issued additional shares at nominal value in event of a down-round (i.e new securities being issued for less than £1.18 per share (for Series A Shares) and £1.2496 (for Series A2 Shares)).
Please note that Series A3 Shares do not carry any anti-dilution rights.
Investors in this round are investing into and will become shareholders of Second Nature Healthy Habits Ltd (Company number 08511152). This is the holding company for the group.
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
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