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Townsend Nutraceuticals
Location: P.O. Box 438, Pasadena, California, United States United States
Founded in: 2014
Stage: Revenue generating
Number of employees: 1-5
Funding history:
- Date: 07/2013, Seed: undisclosed amount (post valuation: undisclosed amount).
Investors: Bill Townsend
Short URL: vator.co/townsend-nutraceuticals
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Townsend Nutraceuticals

Advancing Science Naturally
Startup/business
Pasadena, California, United States United States
http://www.townsendnutraceuticals.com/
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Company description

Townsend Nutraceuticals markets a revolutionary all natural hair, eyelash and eyebrow thickening and regrowth product called RESTORA 88™. The RESTORA 88 product has undergone clinical trials and shown exceptional results.

The company is bringing three products to market: RESTORA 88 Hair Serum, RESTORA 88 Activating Conditioner and RESTORA 88 Eyelash and Brow Serum.

Containing TN’s proprietary Optirevitalin™ complex and patented Q-Some delivery technology, RESTORA 88 has been shown to be more than twice as effective as current hair loss treatments with Johnson & Johnson’s Rogaine® with 88% of RESTORA 88 users experiencing visible results within 9 months.

For lash and eyebrow growth, the market leading product Latisse™ has been shown effective in 66% of women but has a negative side effects which are highlighted on Latisse’s website and include, “LATISSE® does have some side effects, the most common of which are an itching sensation in the eyes and/or eye redness. These were reported in approximately 4% of patients.  Other less common side effects typically occur on the skin close to where LATISSE® is applied, or in the eyes. These include eyelid skin darkening, eye irritation, dryness of the eyes, and redness of the eyelids. Eyelid skin darkening is a result of increased melanin in the skin, making your eyelid skin look a little darker close to where the solution is applied to the skin.”

RESTORA 88 is all natural, 93% effective and to date has shown none of the medical complications found in Latisse. 

According to The Washington Post, American hair loss sufferers spend more than $3.5 billion a year in an attempt to treat their hair loss. Unfortunately, 99% of all products being marketed in the less than ethical hair loss treatment industry are completely ineffective for the majority of those who use them.

The two market leaders have generated billions of revenue for their owners and yet they do not fully solve the hair loss problem. In clinical trials, 65 percent of male participants taking Propecia for 2 years or longer noted an increase in hair regrowth, says the American  Hair Loss Association and only 25 percent using 2 percent topical minoxidil noted increased hair density. 88% of RESTORA 88 users experience visible results within 9 months.

The argument for choosing Proprecia over Rogaine is that it appears to be the best method to prevent future hair loss in men who are in the earliest stage of androgenic alopecia. However, Propecia does have potentially serious side effects including impotence, loss of interest in sex, or trouble having an orgasm; abnormal ejaculation; swelling in your hands or feet; dizziness, weakness; headache; or skin rash.  Propecia can be used with RESTORA 88 with no negative effects from drug interaction and early indications suggest that by combining the two an even higher long-term hair loss prevention rate may occur.

While many factors concerning the character and behavior of an individual’s hair are heavily dependent on genetics, the cyclic growth and loss of hair all over the body occurs similarly for everyone. This happens in three phases: the telogen phase, which is a dormant or resting phase four to nine months long; the anagen phase, a period of active growth lasting one to two months during which growth takes place; and the catagen phase, a transition between growth and dormancy which may last about 15 days.

RESTORA 88 therapy stimulates hair to progress more rapidly from the telogen phase to the anagen phase, and to maintain the anagen phase for a longer period of time. So at any given moment, more hair are in this active growth phase, which promotes thicker, fuller hair and increased hair density, leading to the intended overall effect.

Global Market

The global market for hair and skin treatments exceeds $24 billion USD. Not since the introduction of Propecia in 1997 has a proven new product been made available to both men and women. IBIS World’s Hair Loss Treatment Manufacturing market research report suggests there is no dominant company in the hair loss industry with over 120 companies and 10,000 employees in a market with a 3.5% annual growth rate.   RESTORA 88’s all-natural formulation and high efficacy rates that exceed prescription medications suggest it should be well received by consumers. Our low cost of manufacturing should lead to higher than normal profit margins and as we increase production, management believes the cost of manufacturing will decrease, further increasing profits. 

Status of Product

Clinical trials have been completed with significant positive results. The products are ready to be manufactured within 90 days of funding.  

Series A Investment

The Company is seeking a $2,000,000 Series A investment for 25% of the common stock.

At plan, the current projections are that the Investor will receive their investment back by the end of the 3rd year. As the Corporation grows, the projected 5 year return on a $2,000,000 investment could exceed $12,000,000 for a total return of 523%.

 

 

 

 


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Team
Business model

Marketing Strategy

RESTORA 88 products will be marketed through network marketing organizations, e-commerce, and sold at retail. Possible infomercial sales and home shopping networks sales (example: QVC and HSN) may occur.

TN is in discussions with a global multi-level marketing organization with 400,000 independent distributors to sell the RESTORA 88 line of products. 

TN would receive approximately $22 per product, which is included in the Corporation’s financial plan. Management believes RESTORA 88 can be sold directly to consumers at a retail price of $99.95 per 30-day supply with a sales price as low as $59.95 (Financials are based upon this lower price). Wholesale sales will occur at $40 for the hair product and $32 for the lash product with minimum advertising pricing set at $69.95 for retailers.

A comprehensive e-commerce site is being developed to offer RESTORA 88 products directly to consumers. The use of online marketing, social media, public relations and other advertising tactics will push consumers to the website to purchase RESTORA 88 products. 

The product must be used continuously for maximum effectiveness and will be sold in 30-day packaging. Auto-shipping of product each month to the consumer will be available through the RESTORA88.com website, creating a recurring revenue model. Called “negative continuity”, these programs can cost-effectively help a company generate recurring revenue as well as build customer relationships and loyalty. In general, continuity-marketing programs involve persuading a customer to agree to receive regularly scheduled shipments of a company's products, such as getting a new bottle of RESTORA 88 hair serum and activating conditioner each month. Usually, a customer's credit card is stored by the merchant—in this case TN—and automatically billed for each purchase.

In addition to generating revenue, continuity marketing makes financial sense. According to recent reports by research firm Gartner Inc., the cost of keeping a customer is only 20 percent of the cost of finding a new one. For a customer, continuity marketing provides a chance to pay for a product in installments rather than a lump sum and ensures the consumer receives the product at the time of need, in the case of RESTORA 88, every 30 days.

Retail sales will be facilitated through a wholesale program whereby spas, hair salons and other retailers can purchase the products at $40 and $32 price points, sell at $69.95 or more and a minimum 57% markup, which is highly attractive to retailers. 

 

Competitive advantage

The products work.

88% of RESTORA 88 hair serum users experience visible results within 9 months.
65% of male participants taking Propecia for 2 years or longer noted an increase in hair regrowth.
25% of 2 percent topical minoxidil noted increased hair density. 

For eyelash and brow growth, 93% of women who have used RESTORA 88 for 16 weeks or longer experience growth or thickening.
For Lunisse, 66% of women were satisfied with the results of their treatment after 20 weeks.

Cost

The products cost less than competitors.

All natural.

The products are all natural and to date there has been zero reports of allergic reaction or adverse effects.

The team

The founding team has launched and sold companies for over $9 billion. The members have extensive experience in product sales, e-commerce, and startups, including companies such as Lycos.com, Deja.com (sold to Google and eBay), P90X fitness, neuro drinks, $2.8 billion online retailer newegg.com, and others. 

Finally, there is a need.

Millions of men and women are faced with thinning hair, eyebrows and eyelashes. Outside of Propecia (prescription required), Latisse (prescription requred) and Minoxidil, there have been no proven hair thickening and regrowth until RESTORA 88. 

 

 

 

 

The team understands direct marketing. 

Investors
Bill Townsend
Bill Townsend - Unconfirmed
Investor Deafult Image
ChenGong, LLC - Unconfirmed