Story
Julia Cheek's EverlyWell origin: $2,500 spent, never got her results
EverlyWell founder Julia Cheek describes the founding pain: as a woman in her late 20s with unexplained fatigue and aches, she saw 5-6 doctors on good insurance, ran many blood tests, paid over $2,500 out of pocket, and never received her results or any meaningful answer.
“And so I went to 5 or 6 different doctors on good health insurance. And each of them ran different blood tests. I never got my results. I paid over $2,500 out of pocket. Nothing material showed up or was communicated to me.”
Number
EverlyWell hit $40M in sales in year three, after raising $50M+
Julia Cheek details EverlyWell's trajectory: 35 tests sold via its site, Amazon, Target, CVS and Kroger; over $50M raised from coastal VCs after three grinding rounds; and $40M in sales in its third year of operation, growing from zero.
$40M
Annual sales in third year · USD/year
“I've raised over $50 million from— 5-0, you said? 5-0 from West and East Coast VCs. That was after obviously having like 3 rounds of clawing my way through funding, and then suddenly things did get easier. And we actually grew from zero to— see, we did $40 million in sales last year. Yeah. Wow. Our 3rd year in operation.”
Number
EverlyWell's Shark Tank deal: line of credit, 8% interest, 5% equity
Julia Cheek reveals her actual Shark Tank deal structure with Lori Greiner at a $20M post-money valuation: a line of credit at 8% interest in exchange for 5% of the company. She says she shook on the largest-ever deal for a female entrepreneur valuation.
$8
Interest rate on Shark Tank line of credit · percent
“It was a line of credit deal at an 8% interest rate for 5% of the company.”
Story
Shark Tank's slow burn: $1M in 4 days, then sustained doubling, no crash
EverlyWell aired the night before Cyber Monday and got 30x normal traffic, but unlike most companies it had no huge same-night purchase spike. Instead it did ~$1M in sales over the 4 days after, doubled on a run-rate basis that week, kept doubling the next month, and never declined.
“We got about 30 times our normal traffic, but we had an interesting experience. We didn't have this tremendous huge spike the night of in terms of purchases, but we ended up doing about $1 million in sales which at the time was a tremendously large number for us, in like the 4-day period after the show. So there's been a little bit of this interesting thing for us that I haven't heard many other companies have, which is we doubled— like, we doubled in that week on a run rate standpoint, and then we continued doubling the next month, and we never had that decline, right?”
Idea
At-home STI testing is an underserved multi-billion-dollar opportunity
Julia Cheek argues at-home sexual-health testing is a multi-billion-dollar opportunity precisely because no one is big in it yet. People avoid clinics, so a private test-plus-treat solution closes public-health gaps and becomes the wedge that gets customers testing at home for everything else over their lifetime.
“Yes, this is a multi-billion dollar opportunity. I'm gonna, again, if we're gonna rep, lots of other people can come into this space. There's a specific company that only does STI testing, but they haven't been well funded. They've struggled. And we really believe that this is not only how you can faster close public health gaps. You also can get people on board to then use testing it from home over their lifetime for any other health issue as well. People don't want to go into a clinic.”
Steal thisUse a high-need, privacy-sensitive at-home test (like STIs) as the wedge to acquire customers who then test at home for everything else.
Take
Acquire customers profitably on first touch instead of betting on payback
Asked whether EverlyWell loses money up front hoping for repeat purchases, Julia Cheek says they acquire customers profitably on first touch. As a first-time founder building a sustainable business, she deliberately didn't raise on negative contribution margin and a hope-to-sell story.
“Profitably on first touch. That's great. That is, for me, we're in Austin, I'm a first-time founder, we're building a sustainable business. We didn't go out and raise money on this premise of just negative content. Contribution margin and then hoping to sell.”
Steal thisBuild unit economics so your first purchase is already profitable, rather than relying on a future-payback story to justify losses.
Fact
40% of tests doctors order never get completed
Julia Cheek cites data that about 40% of the tests doctors issue are never completed by patients—people treat a doctor's requisition like a suggestion. This is the behavioral gap EverlyWell's at-home model is designed to close.
“So the assumption, the data shows about 40% of tests that doctors issue never get completed. So yeah, I treat it like a suggestion.”