Can Botox Fill Up Your Wallet?

By Matthew Milner, on Wednesday, November 21, 2018

“Have you considered Botox, Mr. Milner?”

Uh, what? I was at the dermatologist and had just gotten the all-clear on my check-up…

But evidently, the doc thought I should consider some enhancements.

Actually, he thinks just about everyone should consider some enhancements.

Which is why I’m writing you today…

Fill It In!

As we age, most of us lose the volume in our face that makes our skin wrinkle-free and “youthful.”

For those who care to postpone this fact of life, there are two common solutions:

The first is Botox, which relaxes the muscles that cause lines.

And the second is “Hyaluronic Acid” (HA) — an injectable filler that adds volume, and can thus soften lines and wrinkles.

Fillers like HA are increasingly popular. In fact, this is a big, fast-growing market:

Worldwide, nearly 8 million filler procedures are performed annually. And over the next five years, the market is forecast to grow at 12.5% a year, reaching $10 billion by 2023.

The Problems with Existing Solutions

But there are two main problems with such fillers.

First, in a world that’s increasingly seeking “all-natural” and organic products, HA might not fit the bill. After all, it contains chemicals that can cause harmful side effects.

Secondly, HA doesn’t always stay exactly where it’s supposed to stay — it can “migrate” to another area of the face. That’s just scary.

But now a startup has created what might be a better solution…

Introducing: Algeness

Algeness is an alternative to HA that’s 100% natural.

It’s a purified gel created from what’s called agar-agar, which is made from red algae.

Like HA, Algeness is an injectable implant that provides immediate “volumizing” to the face — but in addition to being 100% natural, it also provides several other benefits:

  • Its effects are visible instantly, so you can evaluate the result immediately. That’s compared to 2 to 4 weeks to see the final results of HA.

  • Low level of migration — in other words, it stays where it’s been injected.

  • A procedure with Algeness typically requires only one visit, compared to multiple visits for competing fillers.

Now Algeness is raising funding from investors like you so it can get FDA approval in the U.S., continue developing its product, and scale up its sales and marketing efforts.

It’s raising about $1 million at a valuation of about $19 million.

Should you consider an investment?

Let’s take a look.

Pros and Cons of an Investment

On the “pro side”:

  • Algeness is targeting a huge, fast-growing market, and is already generating hundreds of thousands of dollars in revenues.

  • The company holds three patents (with 11 more pending); has already received government approval in the EU and elsewhere; and is being used to treat patients in 27 countries across Europe, Asia, Latin America, and the Middle East.

  • Its team is very strong, with former execs from IBM and Medtronic; doctors and plastic surgeons from Harvard Medical School, Cedars-Sinai, and USC School of Medicine; and the former Director of Technology Development and Licensing at MIT.

But on the “con” side:

  • As you learned earlier, the company still needs to get approval in the U.S. from the FDA.

  • This is a highly competitive market, and the big players have ample resources to try and squeeze out competitors.

  • For an early-stage company, a $19 million valuation is relatively expensive. As we aim to earn 10x our money on any early-stage private investment, the company would need to be acquired or IPO at a valuation of about $200 million for us to hit that mark.

But if these risks don’t scare you off, why not dig a little deeper?

Just remember: investing in startups is risky, so you need to do your research!

For more information about Algeness, click here »

Happy Investing

Please note: Crowdability has no relationship with Algeness, or with any of the companies or platforms we write about. Crowdability is an independent provider of education, information and research on start-ups and alternative investments.

Best Regards,
Matthew Milner



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