Executive Summary

VADE Nutrition was formed on a mission to redefine the nutritional supplement industry by making nutrition convenient & portable with pre-measured servings, wrapped in a dissolvable food-grade film. On our path to achieve this mission, we’ve been fortunate to have experienced unparalleled growth and accomplish ments that most could only dream of. From $17,000 in sales a few years ago, to now over $20M in lifetime revenue, maintaining a growth rate of 1,523% over a 3-year period, & a 2-time winner of the Inc 500 Fastest Growing Companies in America. Ranked in the top 12 for all health companies. Landing deals with top retailers like GNC, Hy-Vee, and CVS led to us having space in over 8,000 retail locations across the country. Jumpstarted by our successful appearance on ABC’s Shark Tank, we’ve generated over 500M views across social media platforms. These successes spurred on being listed in the prestigious Forbes 30 Under 30 list.

With our successes as the backdrop, the struggles and challenges we’ve faced over the last few years have also been seemingly unparalleled. In 2022 VADE Nutrition hit the highest growth with a gross revenue of $6.1M, though in 2023 VADE Nutrition experienced a revenue reduction to $3.7M, which has continued into 2024. This sharp decline was due to a combination of factors including a subs tantial rise in our cost of goods sold due to supply chain constraints, a strategic pivot towards optimizing operations for long-term profitability, and unforeseen delays in our supply chain. The greatest factor of the extended downturn has been taking th e manufacturing in-house and the loss of our co-packing partnership, making it impossible to produce any products until our in-house manufacturing is fully functional

Financial Context and Strategic Shifts

Funding Landscape

Since our last fundraising round in 2021, VADE Nutrition successfully utilized its capital to fuel rapid growth through 2022. However, we were not yet structured to reach profitability, and so the absence of additional funding in 2023 limited our ability to navigate external economic pressures effectively. This constraint impacted our strategic capacity to invest in opportunities that would sustain our previously exponential revenue growth.

Operational Optimization for Future Profitability

In anticipation of scaling our growth sustainably, we shifted our focus towards restructuring our operations. This included investing in machinery to bring our production in-house—a move set to significantly reduce our COGS from Q1 2025 onward. We also streamlined our wor kforce and built a strong and proven leadership team to align more closely with our future growth trajectory.

Recent Challenges and Strategic Responses

End of Co-packing Relationship and Quality Control Issues

In December 2023, our previous co-packer, upon learning of our transition to in-house manufacturing, produced a substandard batch of products worth $2.2M intended for Amway. This batch failed Amway's quality inspection, leading to its rejection. The termination of this co-packing relationship has lef t us without product stock for over nine months, severely impacting our ability to meet market demand and forcing us to halt all marketing activities and scale back operations extensively.

Transition to In-house Manufacturing

Despite the initial delays in setting up our new manufacturing facilities, which caused significant operational hiccups, we are on the cusp of initiating operations. This transition is poised to centralize our production processes, from pod creation to packaging, under one roof, significantly reducing costs and enhancing our control over the entire supply chain.

Urgent Funding Requirement and Investment Opportunity

Immediate Financial Need

The compounded effect of operational setbacks and our inability to fulfill timely orders has severely depleted our revenue streams. To navigate through this critical period, we urgently require an infusion of $4M in capital, offered at a deeply discounted pre-money valuation of $2M, a significant reduction from the $25M valuation during our last funding round.

The Path Forward

Despite the setback in 2024, the demand for VADE Nutrition's products remains robust, growing, and largely unmet due to the outlined financial and operational challenges. Our strategic pivots and operational investments in 2023 and 2024, though momentarily diluting our revenue streams, have laid a stronger foundation for scalable, profitable growth.

Investment Appeal

VADE Nutrition stands at a pivotal juncture. With the right funding, we are not merely returning to a path of growth; we are stepping onto a trajectory that promises to exceed our previous accomplishments. We are seeking partners who see the vast potential of the shifts we've made and the untapped market opportunities ahead. Your investment will catalyze our expansion and innovation, propelling VADE Nutrition toward becoming a billion-dollar enterprise that leads and redefines the nutritional supplement industry.

Investment Details

• Size of round: $2M- $4M+
• Pre-Money valuation: $2M (less than 1X TTM sales)
• Estimated 2028 revenue: $41.2M

Additional Information

For additional information or questions, please email joe@vade-nutrition.com