The Estonian health technology start-up company Geneto is raising 300,000 to 600,000 euros in Funderbeam, which is planned to expand into foreign markets and engage in product development. Äripäev talked to Jaak Sarve, CEO and co-founder of Geneto, about the company’s growth potential and the reasons why investors should participate in the round of raising money until Wednesday.
Combining genetics and a healthy lifestyle
Geneto is a health technology company that combines genetics with nutritional and exercise advice in a way that helps prevent diseases caused by poor lifestyle habits. In Estonia, Geneto cooperates with Elisa and the Geneto service is rather known through the Lifestyle application. In the lifestyle app, the user finds a diet plan, a training diary, and step challenges, all based on personalized genetic test data, helping a person address the diseases that threaten him or her in a way that best suits his or her genetics.
It is the combination of genetics and nutrition and exercise that is the CEO of Geneto Jaak Sarve According to him, what makes the company special: “We were the first to do something like this. The biggest advantage of this approach for the user is the personality – the app takes into account a person’s genetic characteristics. However, combining the two areas also creates a commercial advantage – by applying a genetic test to make personal recommendations, we make gene technology practical. On the other hand, by offering personalized recommendations to the user, users see real changes in their weight and health, which motivates them to continue using the app. ”
Geneto CEO and co-founder Jaak SarvPhoto: Silver Gutmann
It seems that the work has paid off. Geneto launched the full product at the beginning of 2020, and by the end of the year, it had a turnover of € 126,102, which is € 47,242 more than in 2019. By the end of August this year, Genetos had 1,765 paying customers – a year earlier, in August 2020, there were only 386 customers. Product-Market Fit test results show that 88% of users are very satisfied with the service and would be disappointed if it no longer existed.
Strictly scientific approach
According to Sarve, one of the reasons why Geneto has been so successful is the serious research behind the product:
It is important to note here that Geneto uses polygenic risk scores. This means that when creating its prediction models, Geneto does not look at individual genetic variations, but at the interaction of thousands of genes: “Our models are based on the genetic data of more than half a million people, which is validated by clinical data from the medical system. That’s the only way to ensure real predictive and practical value in use. ”
The work is aimed at disease prevention
Because it is body weight that plays a major role in the development of the most common lifestyle diseases, such as diabetes and cardiovascular disease, Geneto addresses weight loss with its exercise and diet recommendations. Obesity is a growing problem – data show that the number of overweight people has tripled between 1975 and 2016. In European countries, for example, 64% of the UK, 54% of Germany and 47% of the French population are overweight.
This has created a breeding ground for the health and fitness industry, whose growth will not slow down any time soon. However, Geneto aims to conquer the disease prevention market: “This market is still in its infancy, but given the paradigm shift in the medical world to focus on prevention rather than treatment, we see great growth potential.”
The same potential has already been noticed by insurance companies, for example: “As the treatment of diseases is many times more expensive than their prevention, private insurance companies are actively looking for ways to optimize their business model. We have seen initiatives where private insurance companies pay directly to a disease prevention company to help people prevent disease, rather than having to pay for it later. ”
Seek investment potential
It is this enormous growth potential that Geneto wants to take advantage of. With up to € 600,000 to be raised, it plans to expand into the UK, Finnish and Polish markets, quadruple its customer base by the end of 2022 and develop five new polygenic risk scores to prevent even more diseases.
Investors should also be reassured that the investment cycle is led by strategic investors Martin Kruus, Kalle Kiigske and Ahto Pärl. Also, the advantage of investing in Funderbeam is that, unlike a classic angel investment, where the amount invested is held until exit, the money invested in Funderbeam retains its liquidity.
As for the exit, Geneto sees three options for this: “The first option is for us to become profitable and for investors to be able to withdraw their investment as dividends. Another option is for someone to buy Geneto. And the third option is, of course, going public. ”
In addition to the aforementioned reasons, the opportunity to invest in the success story of Estonia’s first unicorn in health technology, as well as the opportunity to invest in something that solves a very real and high-impact problem in the world, speaks in favor of investing in Genetos. “If apps come and go according to what is fashionable at the moment, then health is an issue that never loses its relevance,” adds Sarv.
Invest in Genetos in Funderbeam!
Geneto Circulation lasts until midnight on Wednesday, 24 November. Any adult with a Funderbeam account can invest. It is possible to invest a minimum of € 250, there is no upper limit. Creating a Funderbeam account is free. Read more about the Geneto fundraising conditions from here.
Source: https://www.aripaev.ee/ by www.aripaev.ee.
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