Overview
Everlywell is a digital health company that offers at-home lab tests to customers. Founded by Julia Cheek in 2015, the company has grown rapidly and is now valued at $2.9 billion as of 2024.
This section will provide an overview of Julia Cheek’s background, how she founded Everlywell, the company’s appearance on Shark Tank, and what has happened to the company since.
Shark Tank Appearance
In 2017, Cheek appeared on season 9 of Shark Tank, seeking $1 million in exchange for 5% equity. The Sharks were impressed with the revenue figures but knew the healthcare space was incredibly competitive.
Lori Greiner was the only Shark willing to take a gamble and offered $1 million as a line of credit with 8% interest and 5% equity. Cheek accepted the offer and was thrilled to have Lori on board.
After Shark Tank
Everlywell expanded rapidly after Shark Tank.
Two years after the deal with Lori closed, the company earned $65 million in lifetime sales. Their products are now available in retailers such as Walgreens, Kroger, CVS, and Target.
According to CB Insights, Everlywell 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, Everlywell acquired PWNHealth and Home Access Health Corp. in a cash and stock deal. Cheek combined the two companies into a parent company called Everly Health.
After the deal closed, the company 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 has over 600 employees and made over $200 million in annual sales for 2020 according to Bloomberg.
As of 2024, Everly Health has done $1.2 billion in lifetime sales. Given the company’s huge success, it’s possible they will go public within the next two to three years.
Julia Cheek’s Background
Julia Cheek was born and raised in Austin, Texas. She attended Vanderbilt University and received her MBA with honors from Harvard Business School.
Before becoming an entrepreneur, Cheek was a world champion in horse riding. She started her career as a management consultant at Deloitte US and later became an executive at the George W. Bush Institute.
Cheek was then hired as the chief financial officer of MoneyGram, where she later became the youngest department VP in the company.
Founding Everlywell
Cheek founded Everlywell in 2015 after she experienced a hormone imbalance and struggled to understand her lab test results.
She 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, it only had 13 tests available. However, 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.
Lessons From Everlywell’s Success
Based on the Shark Tank episode about Everlywell, here are three practical tips for aspiring young entrepreneurs:
1. Address common pain points with innovative solutions
Everlywell was founded to solve the founder’s frustration with complex, time-consuming, and expensive lab tests. By offering convenient at-home lab tests with understandable results, they addressed a common pain point.
ntrepreneurs should identify widespread issues and create innovative solutions that simplify and improve existing processes for consumers.
2. Focus on market validation and traction
Before appearing on Shark Tank, Everlywell had already achieved $2.5 million in sales and was on a growth trajectory. This demonstrated market validation and customer demand.
Entrepreneurs should focus on proving their concept and gaining traction to show potential investors that their business has a viable market and growth potential.
3. Leverage strategic partnerships for growth
Everlywell benefited from Lori Greiner’s marketing savvy and retail connections, which helped them expand their presence in major stores like Target and CVS.
Forming strategic partnerships can provide valuable resources, expertise, and market access, accelerating a startup’s growth and increasing its chances of success.
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