Investors understand that there is much more to investing in a startup than simply writing a check. The pursuit of “Smart Money” - investing not only money, but also mentorship and connections - has been on the rise. Regardless of the type, all investors look for regular investor updates, notifying them of important developments in the company. Similarly, Onevest keeps in touch with our successful companies to keep an eye on their progress after raising money with us.
Back in May of 2014, Denver-based Züm XR raised a $1.5M Series A round. Züm XR created a patented, time-release delivery system for beverages. Their caffeinated drinks release healthy ingredients meant to build and sustain energy throughout the day. We caught up with Michael McCarthy, VP of Marketing for Züm XR, to see what they’ve been up to since closing their round in May, and they have certainly been busy.
Since May, Züm XR has achieved a number of big milestones, focusing much of their efforts on manufacturing and distribution. They recently signed a licensing agreement with LXR Biotech to use their time-release technology in a variety of LXR’s products, some of which are already featured in Walmart. Whole Foods, who has been carrying their products since before their seed round, awarded Züm XR as a recipient of the Local Producer Loan Program in August of 2014, an award meant to help small, independent companies grow their business. The team also continued to bolster the scientific proof behind the benefit of their technology by conducting clinical studies at a third party lab. These studies were done to show the release rates of the various active ingredients in their delivery system. Some of the top beverage/consumer-packaged goods companies have begun to notice - Züm XR is in talks with or has already signed NDAs with 12 of the top 20 companies in the field.
Companies that are at the seed stage, like Züm XR was in May, have the odds stacked against them in terms of making it to the next round. That means that any funding coming in is not “padding”; it’s absolutely necessary to keep the business alive. Züm XR is no different, as Michael explained, “most of our clinical testing and extensive consumer studies would not have been possible without the funding.” Particularly for a company offering a novel technology through a traditional medium, Züm XR has taken on the challenge of proving to the market that their system works. These efforts will certainly continue: they are currently conducting a pharmacokinetic blood serum study to “quantify the benefits of our time-release delivery system vs. immediate release active ingredients (the status quo).” These findings will hopefully lead to stronger scientific support, but the Züm XR team knows that they need more. The previously mentioned study will also focus on mental and physical “end-points: mental focus, fatigue, libido, overall energy, motivation to exercise, and concentration”. With the strict regulations on product labels, Züm XR wants to be ready to back up their progressive claims.
Securities offered through WealthForge, LLC. Member FINRA/SIPC Onevest Corporation ("Onevest") is not a registered broker-dealer and does not give investment advice with respect to any securities. All the startup offerings listed are offered by the applicable Issuer. Onevest has not taken any steps to verify the accuracy of the information provided on the offerings that are listed. Onevest takes no part in the negotiation of the transaction and no securities are executed through Onevest's platform. Onevest receives no compensation in connection with the purchase or sale of securities.
Past performance is not an indication of future results.
Hyperlinks to sites outside of our domain do not constitute an approval or endorsement of content on the visited site.