Being sick is already stressful enough, but getting lab results can be more draining. Everlywell resolves this by providing a way to perform health testing at home. Founder Julia Cheek appeared on Shark Tank and made a deal with Lori Greiner. It is now one of the most successful Shark Tank companies. As of 2022, Everlywell is worth $2.9 billion.
About the Founder
Julia Cheek hails from Austin, Texas. She studied at Vanderbilt University and received her MBA with honors from Harvard Business School. In her early days, she was a world champion in horse riding before retiring in 2009.
Her work life started when she became a management consultant at Deloitte US. Then, she became an executive at the George W. Bush Institute. The Texas native was later hired as the chief financial officer of MoneyGram. After holding the position for several years, she became the youngest department VP in the company.
Founding the Company
One day, Julia discovered that she had a hormone imbalance and needed to get some lab tests done. However, she spent a lot of time and money waiting for results that she never fully understood. This inspired her to change the way lab results were processed.
Julia created an online platform where people can order test kits for different conditions. Customers can then send their samples to a partner lab and wait for results on Everlywell.com.
When the company launched in 2015, it only had 13 tests available. Nevertheless, it was enough for the businesswoman to make $2.5 million in revenue in less than a year. The run rate was $400,000 per month and the sales were growing 20% month-on-month.
Shark Tank Appearance
The startup was rapidly expanding and Julia needed to raise capital quickly to compete against the bigger players in the market. She appeared on season 9 of Shark Tank, seeking $1 million in exchange for 5%.
The Sharks were impressed with the revenue figures but knew the healthcare space was incredibly competitive. Also, Everlywell would need to raise more capital in the future which could dilute their equity.
Lori Greiner was the only Shark willing to take a gamble. She offered $1 million as a line of credit with 8% interest and 5% equity and Julia accepted! Julia desperately needed a line of credit and was thrilled to get Lori on board.
After Shark Tank
The at-home health testing company expanded rapidly after Shark Tank. Two years after the deal with Lori closed, Everlywell earned $65 million in lifetime sales! Their products are now available in retailers such as Walgreens, Kroger, CVS and Target.
Everlywell has successfully raised $255.55 million from 18 investors with the latest funding round of $75 million coming in January 2021. A funding round in December 2020 valued the business at $1.3 billion!
Some of the capital raised has gone towards acquiring other companies. In March 2021, they acquired PWNHealth and Home Access Health Corp. in a cash and stock deal. Julia combined the two companies into a parent company called Everly Health. After the deal closed, Everlywell was valued at $2.9 billion!
Everly Health opened up the checkbook for a third time in 2021 when they bought women’s health startup Natalist. The company now has over 600 employees and made over $200 million in annual sales for 2020 according to Bloomberg.
No recent sales figures have been released. Given the company’s huge success, it’s possible they will go public within the next two to three years.