Investment Round
Valuation & Term Sheet
Structured for transparency - designed for scale.
Overview
This section outlines the structure of our pre/seed raise, the reasoning behind our $5 million post-money valuation cap, and the long-term investor upside as TruSelf and TruCore expand.
This round turns a proven audience into a scalable operating system for the $579 billion wellness economy.
Current Raise Summary
Item | Detail |
|---|---|
Round Type | Pre/Seed |
Instrument | SAFE (Post-Money) - Y Combinator standard or equity |
Raise Target | $1,000,000 USD |
Valuation Cap | $5,000,000 Post-Money |
Discount | 20 % |
Option Pool | 10 % reserved for early hires |
Founder Ownership (Pre-Raise) | 100 % - Valerie Honor Brown |
Stage | TruSelf live / TruCore pre-launch build |
Closing Target | Q1 2026 |
* These are assumptions based on a SAFE round, negotiable terms.
Valuation Rationale
1️⃣ Community-Driven Asset
TruSelf is already live with:
135 K + active members & growing
45 % email open rate, 8 % CTR
4 K + joining a month
Community ownership and intent data are the most valuable early-stage indicators in beauty tech. Comparable early communities (RealSelf 2008 non-community validation, Glossier Phase I, Boulevard pre-launch) raised at $4–$8 M valuations without live traction or users.
2️⃣ Product-Ready Technology
TruCore pilot and UI are complete, creating a SaaS infrastructure ready for deployment.
The valuation captures both proven market fit (TruSelf) + product readiness (TruCore).
3️⃣ Market Size & Moat
$579 B global beauty + wellness market
$32 B aesthetic tech subsector
70 % of aesthetic searches shifting to communities by 2025 (Gartner)
TruSelf already controls this funnel organically with distribution.
4️⃣ Comparable Benchmarks
Company | Stage / Round | Valuation | Notes |
|---|---|---|---|
Zenoti | Series C | $1.5 B | Vertical SaaS for salons / spas |
Boulevard | Series B | $600 M | Beauty scheduling SaaS |
Vagaro | Growth | $700 M | SMB beauty management |
RealSelf | Series B | $55 M raised | Ad marketplace only; no CRM |
Our product combines a wellness SaaS, positioning between marketplace and infrastructure with significantly higher LTV. Taking the market and growth like mindbody $1b+ revenue.
Ownership Structure (Post-Raise Scenario)
Holder | Role | % Ownership (Est.) | Notes |
|---|---|---|---|
Valerie Honor Brown | Founder / CEO | 72 % | Fully diluted post-SAFE + pool |
Option Pool | Future Team / Advisors | 8 % | Reserved |
SAFE Investors | Pre-Seed | 20 % | Converts at next equity round |
No board seats granted at pre-seed; advisory participation welcomed.
Key Terms Summary
Term | Definition |
|---|---|
SAFE Type | Post-Money SAFE (Y Combinator standard) |
Valuation Cap | $5,000,000 post-money |
Discount Rate | 20 % on next priced round |
Conversion Trigger | Automatic at next equity round ≥ $1 M raise |
Most Favored Nation (MFN) | Standard SAFE MFN clause included |
Pro-Rata Rights | Standard rights to participate in future rounds |
Interest / Maturity | None (SAFE not debt) |
Closing Date | Target December 2025 / rolling close structure |
Expected Investor Outcomes
Scenario | Post-Seed Valuation | Next Round Valuation | SAFE Investor ROI (Paper) |
|---|---|---|---|
Base Case | $5 M | $25 M Series A | 5× – 6× |
Upside Case | $5 M | $50 M Series A | 10× + |
Downside Protected | $5 M | $10 M Series A | 2× – 3× |
At full conversion, early investors hold ≈ 20 % post-Series A (assuming $5 M cap and 20 % discount).
Use of SAFE Proceeds (Tied to Milestones)
Phase | Timeframe | Use of Funds | Deliverable |
|---|---|---|---|
Phase 1 | Q4 2025 | Product Dev 45 % | TruCore MVP Beta (20-24 clinics) |
Phase 2 | Q1–Q2 2026 | Growth 25 % | 500 TruCore users / 250 K TruSelf members |
Phase 3 | Q3–Q4 2026 | Ops 30 % | $2.5 M ARR / Enterprise pilots (3 partners) |
Valuation Justification Summary
Component | Value Basis | Implied Value (USD) |
|---|---|---|
TruSelf Community Asset | 130 K members × $15 LTV (lead value) | $1.95 M |
TruCore IP & Prototype | MVP architecture + CRM framework | $1.5 M |
Market Position & Brand Equity | Verified network + organic SEO | $1.2 M |
Pre-Revenue Option Pool | Talent + AI development roadmap | $0.35 M |
Total Implied Valuation ≈ | $5 M Cap |
Exit & Liquidity Potential
Exit Path | Timing | Potential Multiple | Example Comparable |
|---|---|---|---|
Strategic Acquisition | 3–5 yrs | 10–20× on entry | Zenoti / Boulevard / RealSelf buyout |
Series B IPO Path | 5–7 yrs | 30× + | Vertical SaaS / AI wellness data play |
Data Licensing / Partnerships | 2–4 yrs | 5–8× ROI on SAFE | Insurer / Fintech partnership expansion |
Summary
Round: $1 M SAFE @ $5 M Cap / 20 % Discount
Founder: 100 % ownership pre-raise
TruSelf: Proven traction (135 K community)
TruCore: MVP build underway – SaaS launch next phase
Runway: 18 months to ARR positive inflection
Comparable Valuations: Beauty vertical SaaS avg $25–50 M pre-Series A
Investor Goal: 5–10× paper ROI by Series A
Early investors capture both sides of the ecosystem - the community moat (TruSelf) and the monetization engine (TruCore).