Smilelove

Smilelove is a direct-to-consumer company selling treatment solutions for teeth straightening.

Since launching in mid-2017, the company has received FDA approval for its product, and generated more than $1 million in revenue.

According to the American Association of Orthodontics, approximately 100 million Americans are unhappy with their smile. Yet because of affordability issues, only 4 million of these people are undergoing orthodontic treatment.

With a large untapped market, several companies have emerged in the dental tech industry, and professional investors have taken notice.

According to a May 2018 article from PitchBook, a company providing research on private equity, professional investors are “putting their money where your mouth is.” Through the first five months of 2018, venture capitalists invested $146 million in dental-tech companies, a figure on track to surpass last year’s $326 million total.

Current teeth straightening treatments are time-consuming and costly. They can require multiple visits to the dentist or orthodontist, and can cost between $5,000 to $7,400.

Smilelove, meanwhile, offers an affordable treatment option that enables customers to use the product in the privacy of their own home while still receiving expert advice from certified dentists.

Here’s how the process works:

Customers order a Smilelove kit online, complete impressions of their teeth, and send them to the company along with photos of their teeth.

Once received, Smilelove sends the pictures, impressions, and the customer’s medical history to a licensed dentist. The dentist reviews the case file and writes a prescription for treatment.

Next, an orthodontist and a team of technicians create a treatment preview. This includes profiling what the patient’s straight teeth will look like and how many aligners will be needed. Depending on case severity, customers receive 8 to 20 aligner trays, and each tray is worn for two weeks.

According to Smilelove, the average treatment period lasts eight months. Finally, the dentist who completed the initial review signs off on the treatment preview, and the patient receives their aligners.

Each aligner is made from a clear material that minimizes discomfort and maximizes the cosmetic benefits for each user. In addition to the aligner, Smilelove offers step-by-step instructions and continuous customer service to walk each customer through the entire process.

Smilelove launched in 2017, and has attracted more than 1,000 customers. The company has a royalty agreement in place for licensing its product in Canada and Hong Kong. As a result of this agreement, Smilelove will receive 8% of all future revenues.

Smilelove charges $1,699 for its treatment. Limited overhead and overseas manufacturing reduce the company’s costs significantly, enabling it to charge less than other direct-to-consumer dental tech companies such as SmileDirectClub.

Customers can pay upfront, or obtain financing through Affirm, a financial company that offers monthly payment plans. For customers who choose to make payments, Affirm bears the credit risk and pays Smilelove the full treatment price immediately.

Following treatment, customers can subscribe to monthly whitening treatments for $39.99 per month, as well as an annual retainer program for $100 per year.

At these price points, Smilelove achieves gross margins of 60%. The company’s cost to acquire a customer is $350 and the cost of aligners is $650. This leaves a margin of roughly $700 per case.

Smilelove attracts customers through Facebook ads and a customer referral program. In the future, the company will add radio advertisements and introduce self-service kiosks in retail locations in major metro areas.

Team Background

Spencer Grider - Co-Founder

Before starting Smilelove, Spencer served as Senior Product Designer for Lendio. In addition, he previously served in the same position with mycore, a software development start-up.

He previously served as UX Designer for Backcountry.com, an online retailer specializing in outdoor clothing and hiking gear.

Spencer previously served as an advisor of Little Poppy Co., an online subscription business focused on gifts for new mothers. Under his guidance, Little Poppy reached $6 million in annual revenue in three years.

Spencer earned a Bachelor’s degree in Communications from the University of Utah.

David Frazier - Co-Founder

Prior to starting Smilelove, David served as the Chief Financial Officer for Lendio, a platform that helps small business owners find lenders. While there, he was instrumental in securing a $20 million funding round which included support from multiple venture capital firms.

He previously served as Chief Financial Officer of InXpress, a company providing solutions for freight and mail services.

In addition, David previously served as CEO of ClearStone Windows, a window cleaning company.

For nearly seven years, he served as Chief Financial Officer of Wasatch Mountain Excavating, an excavating company. While there, he handled an annual budget of more than $3 million and developed monthly and yearly budget forecasts.

David studied Business at the University of Utah.

Co-Investors