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Hyperwear ® is a rapid growth fitness brand in a $200B health & wellness market with disruptive products in the $4.4B fitness equipment segment. Overview: Hyperwear is moving to the forefront of the high growth fitness movement - functional fitness - alongside successful brands like P90X, CrossFit, GAIAM, Les Mills, TRX and Zumba. Our strategy is to own the functional fitness market, which has grown 11% annually from 2007-2012. Hyperwear’s short history started with the Hyper Vest ® weight vest (Men’s Health pick as “best weight vest” in 2008). Next came the totally new SandBell ® in 2010. Along with the Series A round in May 2011, a Nike veteran, Denver Fredenburg, took the lead as CEO creating a new brand and building a team for growth. Revenue now exceeds $1.21M TTM. Hyperwear is coming to: Every health club, Every weight room, and Every home. Key Milestones: Closed $725K Series A Shipped first of two Dallas ISD $100K orders ACE awards 5 stars to Hyper Vest New top quality brand platform introduced Amazon Preferred vendor status Master trainer summit education launch SandBell on Dr. Oz SandBell weight loss feature in Prevention Magazine Midtown Club launch with SandBell, education and storage GAIAM signed as reseller Products & Services: Hyperwear products are functional, safe and effective for a broad demographic from K-12 P.E. to pro athletes. Products include the Hyper Vest weight and cooling vests, and the SandBell and SteelBell ® free weights that do what medicine balls, kettlebells and dumbbells can do and much, much more. Hyperwear is building service and media sales with workout DVDs, group exercise programming, and education. Management: Denver Fredenburg, CEO, is experienced in marketing, sales, and operations. He began his career with a fitness accessories business that was acquired by Nike where he spent 6 years. President, Dirk Buikema, has experience in fitness startups and law and M&A with Motorola for 19 yrs. Richard Boyd, health club industry entrepreneur who started PT on the NET, is on the board. Plan to hire identified CMO with branding and marketing experience from Lululemon, Nike, and Coke. Customers: About 20% of sales are consumer direct. Online sales are growing 140% YTY (3MT). Amazon sales have grown 3X after recent major media. Commercial sales include thousands of K-12 schools, new and growing rollout to health clubs in the US and UK, sales to college, pro, and military weight rooms. Specialty retail is ramping and a 1,000 store major chain approached Hyperwear.

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Page 1: Hyperwear is a rapid growth fitness brand in a $200B …college.cengage.com/coursemate/management/longenecker...Hyperwear® is a rapid growth fitness brand in a $200B health & wellness

Hyperwear® is a rapid growth fitness brand in a $200B health & wellness market with disruptive products in the $4.4B fitness equipment segment.

Overview: Hyperwear is moving to the forefront of the high growth fitness movement - functional fitness - alongside successful brands like P90X, CrossFit, GAIAM, Les Mills,

TRX and Zumba. Our strategy is to own the functional fitness market, which has grown 11% annually from 2007-2012.

Hyperwear’s short history started with the Hyper Vest® weight vest (Men’s Health pick as “best weight vest” in 2008). Next came the totally new SandBell® in 2010. Along with

the Series A round in May 2011, a Nike veteran, Denver Fredenburg, took the lead as CEO creating a new brand and building a team for growth. Revenue now exceeds $1.21M TTM. Hyperwear is coming to: Every health club, Every weight room, and Every home.

Key Milestones: • Closed $725K Series A • Shipped first of two Dallas ISD $100K orders • ACE awards 5 stars to Hyper Vest • New top quality brand platform introduced • Amazon Preferred vendor status • Master trainer summit education launch

• SandBell on Dr. Oz • SandBell weight loss feature in Prevention

Magazine • Midtown Club launch with SandBell, education

and storage • GAIAM signed as reseller

Products & Services: Hyperwear products are functional, safe and effective for a broad demographic from K-12 P.E. to pro athletes. Products include the Hyper Vest weight and cooling vests, and the SandBell and SteelBell® free weights that do what medicine balls, kettlebells and dumbbells can do and much, much more. Hyperwear is building service and media sales with workout DVDs, group exercise programming, and education.

Management: • Denver Fredenburg, CEO, is experienced in marketing, sales, and operations. He began his career with a fitness

accessories business that was acquired by Nike where he spent 6 years. • President, Dirk Buikema, has experience in fitness startups and law and M&A with Motorola for 19 yrs. • Richard Boyd, health club industry entrepreneur who started PT on the NET, is on the board. • Plan to hire identified CMO with branding and marketing experience from Lululemon, Nike, and Coke.

Customers: About 20% of sales are consumer direct. Online sales are growing 140% YTY (3MT). Amazon sales have grown 3X after recent major media.

Commercial sales include thousands of K-12 schools, new and growing rollout to health clubs in the US and UK, sales to college, pro, and military weight rooms. Specialty retail is ramping and a 1,000 store major chain approached Hyperwear.

Page 2: Hyperwear is a rapid growth fitness brand in a $200B …college.cengage.com/coursemate/management/longenecker...Hyperwear® is a rapid growth fitness brand in a $200B health & wellness

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Copyright 2012 Hyperwear®, SandBell®, SteelBell® and Hyper Vest® are registered trademarks of Hyper Wear Inc. CONFIDENTIAL PROPRIETARY MAY NOT BE SHARED WITHOUT PERMISSION. EXECUTIVE SUMMARY NOT AN OFFER TO SELL SECURITIES

Sales/Marketing strategy: New branding created in 2011 to accelerate growth and build value as a leader in fitness. The 2012 focus has been on marketing collateral, workout DVD's, education rollout, and building our customer community via social media and FIT MOB℠ events. In 2013 we will introduce a group exercise business unit, and expand our go-to-market into consumer by exploiting a new connection to an NFL group exercise women’s marketing initiative with Nike.

Competitors: The products are disruptive by being a better value, functionally superior, and safe for any floor. The SandBell will be as common as the dumbbell, medicine ball and kettlebells. The Hyper Vest is the thinnest and most functional weight vest, which opens new markets for a weight vest such as group exercise, running, and walking. In the functional fitness segment we will compete with P90X (Beachbody), GAIAM, Zumba, CrossFit, TRX, Les Mills, and Spinning (Madd Dog Athletics).

Competitive advantage: Strong registered trademarks allow creation of protected, branded group exercise classes and workshops just like Zumba®, Spinning® and BodyPump®. Patent pending for SandBell allows it to be shipped empty saving cost. Major upside in weight loss market for cooling vest with patent pending.

Series B Raise: Hyperwear has moved quickly due to exceptional products and publicity. The door is wide open to market penetration in functional fitness requiring investment in marketing and sales. We are raising $3M in series B equity to fund growth (includes conversion) until the business generates positive cash flow in late 2013. Convertible debt of $400K (plus accrued interest) converts into the equity round. While potential exit transactions are subject to market conditions, success in the functional fitness market increases the number of potential strategic acquirers and scales the company to attract brand acquirers and private equity.

Financials 2011 2012 2013 2014 2015 Revenues 846,000 1,523,000 3,193,000 5,715,000 10,058,000 Expenditures 1,319,678 2,179,000 3,326,000 5,001,000 7,761,000 Net -473,678 -656,000 -133,000 714,000 2,297,000

Company Profile Financial Information (USD) URL: http://www.hyperwear.com Employees: 12

Company Stage: USD 1.21M Trailing 12 Month Revenue Previous Capital: $1,275,000

Investors Location & Contact Joel Trammell (Board Member) Wild Basin Investments (Rosa McCormick) Rick Timmins (Angel and VC investor, Cisco VP Finance) Central Texas and Baylor Angel Network Investors

2120 Denton Dr. Ste. 101 Austin, TX 78758 Dirk Buikema – [email protected]