# Proper Financial Model Holistic sleep wellness brand combining natural supplement formulations with personalized behavioral coaching. - Canonical: https://finamodel.com/startups/proper - Excel download: https://finamodel.com/startup-models/proper.xlsx - Category: Health-tech - Model type: SaaS ARR / Valuation - Funding round: Seed - Funding: $9.5M - Founded: 2020 - Geography: United States. - Customer: B2B2C ## About the company Proper is a holistic sleep-wellness brand combining natural supplements with personalised behavioural coaching. Its proposition combines a physical replenishable product with ongoing guidance, aiming to create a consumer relationship around better sleep rather than a one-time supplement purchase. The business can create recurring relationships through product replenishment and coaching engagement. Customer value depends on initial conversion, subscription uptake, refill cadence, product efficacy, coaching use, retention, and the cost of acquiring health-conscious consumers in a crowded wellness category. The model forecasts customers, subscription conversion, refill cadence, supplement margin, coaching cost, CAC, and churn. It includes product and fulfilment costs, coaching capacity, inventory, marketing, gross margin, working capital, cash burn, and runway. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition Two-pillar offering: 1. **Natural supplement formulations** - five SKUs (Core Sleep, Sleep + Calm, Sleep + Clarity, Sleep + Immunity, Sleep + Restore). Ingredients clinically proven; developed by PhDs and MDs in sleep science, nutritional biochemistry, and integrative medicine. 2. **Personalized sleep coaching** - online sleep assessment → 1:1 live consult (phone/video) → personalized sleep action plan. Coaches trained by Stanford sleep medicine faculty. Value prop: replace suboptimal OTC sleep drugs (64% have undesirable side effects) with a science-backed, individualized solution. ## Market No explicit TAM/SAM/SOM figures in deck. Problem-sizing stats only: - 1/3 of US adults don't get enough sleep. - 164M Americans suffer from sleep issues at least once a week. - 1.2M lost workdays due to sleep inefficiencies in the US. - 1:43,000 ratio of board-certified sleep specialists to consumers. No market size dollar figures provided. No competitive market share data. ## Revenue model - **Channel**: DTC e-commerce (website visible in slide 10). - **Products**: Supplement capsule SKUs - 60 capsules / 30 nights per unit. - **Pricing**: $33.99/month subscription (capsules); $33.99 one-time (just capsules). Coaching bundles layered on top ("Select your plan" - multiple coaching consultations vs. one-time consultation tiers visible in slide 6/10). - **Subscription model**: "Skip, swap, or cancel your subscription at any time" noted. Limited-time promo: free coaching consultation with subscription sign-up. - **Revenue streams**: (a) supplement subscriptions, (b) one-time supplement purchases, (c) coaching consultation fees (pricing not explicitly broken out). - No wholesale, retail, or B2B channel mentioned. ## Traction & metrics One product data point from slide 10: "Sleep + Clarity: ***** 15 Reviews" - indicates live product with minimal early reviews. ## Competition / moat - OTC incumbents (ZzzQuil, Olly, etc.) framed as inadequate - side effects, not safe for regular use. - Traditional sleep medicine access gap: 1:43,000 specialist-to-consumer ratio; 90% of PCPs have poor sleep knowledge. - Moat claims (implicit): Stanford-affiliated advisors, PhD-developed coaching curriculum, clinically proven ingredient selection. No competitive positioning matrix shown. ## Team & funding ask / use of funds **Founding team** - 70+ combined years across tech, consumer goods, healthcare: - Nancy W. Ramamurthi - CEO; ex-Walmart VP, CMO ModCloth, co-founder Chairish, VP SAP Concur, Pfizer, Yahoo, Coca-Cola/Kraft. Northwestern MBA. 23+ years. - Kamiu Lee - COO; ex-CEO ACTIVATE, Ralph Lauren eCommerce, Rent the Runway, Gotham Ventures, HSBC M&A. Columbia MBA. 13+ years. - David Berzin - CPO; ex-co-founder/VP Product Parsley Health, VP Data Products Viacom. 15+ years. - Sumish Khadka - VP Supply Chain; ex-Nutrafol, Nature's Bounty, Weight Watchers. 10+ years. - Caci Massaro - Strategy & Ops; ex-Mars & Co, KPMG. 6+ years. - Lucy Mink - Social Media & PR; ex-Derris, W&P. 5+ years. **Advisory board**: Ruchir Patel MD, Adam Perlman MD MPH (Mayo Clinic), Allison Siebern PhD (Stanford), Alice Hirschel PhD (nutritional biochemistry), David Casarett MD (Duke), Eileen Leary MS (Stanford Sleep Center). --- ## Recommended financial model - **Archetype + why**: **DTC subscription + services P&L**. Revenue has two components - recurring supplement subscriptions (unit economics driven by subscriber count, churn, AOV) and coaching sessions (per-session or bundled fee). This is a classic DTC subscription model with an attached services revenue stream. Not SaaS (physical product + human coaching labor), not a marketplace, not a 3-statement model yet (no balance sheet complexity disclosed at this stage). - **Forecast horizon & granularity**: 3 years monthly (Yr 1–2 monthly, Yr 3 annual summary). Monthly needed to model subscription cohort dynamics (new subs, churn, cumulative subscriber base). - **Key drivers & assumptions**: - Monthly new subscribers acquired - Monthly subscriber churn rate - Supplement subscription price - One-time purchase mix (% of orders that are non-subscription) - Coaching attach rate (% of subscribers who take at least one coaching session) - Coaching session price - COGS - supplement gross margin - COGS - coaching gross margin - Blended CAC - Paid marketing spend as % of revenue - Headcount / fixed opex - **Scenarios (Base / Bull / Bear - which variables flex)**: - **Base**: 200 new subs/month Yr1 growing 15% MoM; 8% churn; $33.99 subscription price; 40% coaching attach. - **Bull**: New subs growth 25% MoM; churn drops to 5% by Yr2 (product-market fit); coaching attach 60%; media efficiency improves (CAC declines 20% YoY). - **Bear**: New subs growth 8% MoM; churn 12%; coaching attach 20%; COGS inflation (branded ingredient costs +10%). - **Required sheets / outputs**: 1. Assumptions - all drivers, clearly labelled or. 2. Subscriber cohort model - monthly new subs, churn, ending subscriber count, LTV by cohort. 3. Revenue build - supplement subscription revenue + one-time revenue + coaching revenue. 4. Gross profit - segmented by product vs. coaching. 5. P&L (Income Statement) - revenue, COGS, gross profit, S&M (CAC × new subs + brand spend), R&D (formulation), G&A, EBITDA. 6. Cash flow / runway - operating cash burn, ending cash balance (to size the raise; no raise amount in deck so treat as an output: "how many months does $X buy?"). 7. KPI summary - monthly subscribers, MoM growth, blended gross margin, LTV/CAC ratio, monthly cash burn, months of runway. 8. Scenario toggle - switches Base/Bull/Bear across all sheets. ## Frequently asked questions ### Is the Proper financial model free? Yes. The Proper model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.