Close

Jump to:

  • Navigation
  • Content
  • Footer
Second Nature hero image

Second Nature

Follow

We exist to change minds about losing weight. Join our mission to eradicate obesity and type 2 diabetes.

106%
 - 
Funded 6 Oct 2022
£3,500,000 target
£3,725,109 from 408 investors
More
Less

Business overview

Location London, United Kingdom
Social media
Website www.secondnature.io
Sectors Healthcare Digital Mixed B2B/B2C
Company number 08511152
Incorporation date 30 Apr 2013
More
Less

Investment summary

Type Equity
Valuation (pre-money) £35M
Equity offered 9.59%
Share price £1.25
Tax relief

EIS

Co investor Beringea

Beringea is a transatlantic venture capital investor that’s invested in consumer companies such as Monica Vinader, Papier, and Thread.

More
Less

Business highlights

  • 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
More
Less

Key features

  • Secondary Market
  • Seedrs nominee min. £10.00 +
  • Direct investment min. £25,000.00 +
  • Idea
  • Key Information
  • Investor Perks
  • Team
  • Updates
  • Investors 408
  • Discussion
  • Documents

Idea

Introduction

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)

Monetisation strategy

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.

UK goals

• 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

US goals

• 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

Key Information

Share Classes

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.

Liquidation Waterfall

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.

Material Debt

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.

Outstanding Warrant

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.

Anti-dilution rights

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.

Group Structure

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.

Investor Perks

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.

Open an account to get access to the team members of Second Nature

Sign up

Already have an account? Log in

To comply with financial regulations, we can only show full campaign details to registered users.

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Share on:

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £35,011,024

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

Find out more

Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

Find out more

Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

Find out more

Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Warning

You are following a link outside of www.seedrs.com.

None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

ContinueCancel