The Brilliant Approach that Allowed Hims to Reach Unicorn Status in One Year

Though founded just over a year ago, Hims‘ novel approach to issues of a men’s health has already allowed the company to raise more than $197 million at a reported $1 billion valuation.

A Brilliant Approach to Treating ED

The company, which specializes in men’s healthcare products was able to capitalize on Viagra’s patent expiration and developed its own ED medication using the same active ingredient. Customers consult discreetly with an online physician, then the product is sent directly to the customer’s home. In a move away from Viagra’s targeting of the older male demographic however, Hims markets primarily to a much younger demographic, often under the age of forty, and conveys the common nature of the issue through social media and celebrity sponsored ads in an effort to reduce the stigma surrounding ED treatment.

Addressing Other Men’s Wellness Issues

In much the same way as its ED treatment, Hims has also taken a similar approach in manufacturing and marketing its men’s hair-loss treatment. Once Merck’s patent on Propecia expired in 2014, Hims was again free to repurpose the active ingredient and sell it as its own treatment. It also doesn’t hurt that one of the most common side effects of Propecia is impotence. Along with ED and hair-loss, Hims also addresses the embarrassing problem of cold sores which it combats with a pill containing the active ingredient in Valtrex, whose patent expired in 2009. All of these medications, as well as skin creams and supplements and a new women’s line, are all aggressively targeted in fun and clever ways towards a younger consumer.

An Approach That Pays

So far, the approach seems to be working. It was reported yesterday, Hims will be closing a new round of Series C funding for $100 million. The pre-money valuation of this latest round of funding has reportedly pushed the value of the company over $1 billion. This latest round of funding comes less than seven months after the company closed its last round of funding, a Series B round for $50 million. To date, Hims has raised more than $197 million after eight rounds of funding.

An Optimistic Future

While some investors balked at the $1 billion pre-money valuation, company co-founder and CEO Andrew Dudum remained undeterred. In a recent interview Dudum remarked, ‘We think what we’re building is a $10-20 billion company in the next few years.’ Whether or not the company will reach this valuation remains to be seen, but for now, Hims see,s off to a very good start.

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