How a millennial-focused erectile dysfunction startup came to be worth $200m
Fun fact: ED and hair loss aren’t just “old person” things: 25% of men with male pattern baldness begin losing their flow before they reach 21, and 1 in 4 men who go to the doctor for ED are under the age of 40.
But rest easy, millennials, because men’s wellness startup, Hims, has raised $40m in funding to make sure you can keep your hair (and your boner) without the skin-crawling awkwardness that comes with in-office visits. The new round reportedly values the company at $200m.
That escalated quickly
Hims has only been around since late 2017 and has already sold around $10m worth of products for baldness and ED — which showcases how quickly a direct-to-consumer e-commerce business can go from zero to millions in sales.
According to TechCrunch, there are two key factors to their success:
Reason #1: Last year, close to 80% of US states changed their telehealth laws, making it easier for insurance companies to justify paying for remote doctor and pharmacy visits.
Reason #2: Certain big-name drug patents like Propecia and Viagra are expiring, loosening the big pharma stronghold and opening the door for generic versions to be made and sold at a more affordable price.
Wellness… for dudes
Hims sells wellness kits starting at $40 with medications tailored and “elegantly” packaged to the specific millennial patient’s needs.
With Hims’ quick success, affordable pricing, and telehealth making its way into the mainstream, this market could give VCs around the country the rise in the pants they’re looking for.