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Happy Head: High Growth Telemedicine

Hum Capital’s latest investment opportunity on Percent provides a high-yielding senior secured term loan to telemedicine brand Happy Head, allowing accredited investors to participate alongside ICM directly in a core holding of Hum Capital’s ICM Strategic Capital investment vehicle

Happy Head is a core holding of ICM Hum Strategic Capital

Easily-accessible dermatologist-prescribed hair growth medicine

Happy Head is a Los Angeles-based telemedicine hair loss solutions provider, specializing in customized formulas to prevent and reverse hair loss for both women and men. Happy Head’s hair growth solutions can provide thicker, healthier hair, and treatment plans are customized based on age, sex, medical history, and hair growth goals.

Founded in 2021, Happy Head’s proprietary hair growth formulas were developed by board-certified physicians who have spent their careers focused on hair restoration and treatments. Happy Head’s flagship product is a customizable topical treatment applied directly to the scalp. The company also offers a wide range of oral medications and non-prescription products such as thickening shampoo and conditioner, as well as daily hair supplements.

Happy Head investment merits1

  • 240%+ topline growth year-to-date through August 2023
  • $9M+ of annual pre-marketing EBITDA (last 3 months annualized)
  • ~6,000 additional customers per month (average over last 3 months)
  • Customer cohort acquisition payback within ~8 months, accounting for churn
  • ~88% net dollar retention per annum for seasoned cohorts

Hair loss affects millions of Americans, fueling demand for hair growth solutions

It is estimated that 85% of men2 and 40% of women3 experience hair loss. Studies have shown that hair loss can lead to psychological disturbance and distress, low self-esteem, and can disturb a person’s daily routine.4

The global hair growth supplements market is estimated at $651.7 million in 2022 and is projected to grow at a compound annual growth rate of 14.7% from 2023 to 2030.5 Online hair loss solutions providers like Happy Head have helped broaden access to hair loss treatments by providing direct deliveries to patients’ homes, and this new accessibility has helped fuel growing demand for hair growth formulas. COVID-19 has also boosted sales, as research has suggested hair loss is a persistent symptom often associated with long Covid.6 

Happy Head addresses the flourishing hair growth market by pairing customized topical solutions with access to dermatologists to support customers seeking hair growth options. Happy Head offers a free doctor’s consultation with every new subscription, and delivers the FDA-approved prescription medicine right to subscribers’ doors.

ICM as Co-investor

Hum Capital’s internal Strategic Capital Group, which manages investments according to the underwriting criteria of a large U.S. life insurance company through its ICM vehicle, is an investor in the underlying term loan (since December 2022) and continues to be the majority investor after this offering. Happy Head is a core position in the portfolio of ICM. According to Hum Capital, Happy Head has consistently met expectations and has performed in all capacities.

Happy Head, Hum Capital, and Percent—an opportunity for investors to tap the surging hair growth supplements market

With Percent, Hum Capital can raise capital for Happy Head to help maintain their growth by supporting hiring, marketing, and other general expenses. Percent’s accredited investors gain access to an e-commerce hair loss solutions provider that’s found a formula to compete in a fast-growing category.

1 Performance data provided by Hum Capital

2 “Men’s Hair Loss,” American Hair Loss Association

3 “Hair Loss in Women,” Cleveland Clinic

4 “Psychology of Hair Loss Patients and Importance of Counseling,” National Library of Medicine

5 “Hair Growth Supplements Market Size, Share & Trends Analysis Report,” Grand View Research

6 What to Do if You’re Experiencing Hair Loss After Covid,” New York Times, September 30, 2022

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