History was made in June 2020 when NowRx, the technology-driven pharmacy providing free, same-day delivery, raised $20 million in SeedInvest’s largest crowdfunded round to date. This brings NowRx’s total funding to around $30M, giving the company a post-money valuation of $85M. The recent round, in which 9,556 investors participated, marks the third time NowRx has fundraised successfully on SeedInvest, advancing the company’s growth over multiple equity crowdfunded rounds.
CEO Cary Breese notes, “Raising funds under Regulation A has enabled NowRx to raise substantial capital while managing our own tech development and growth strategy without undue influence from large institutional venture funds, which tend to favor growth over quality and consistency due to their own internal timelines. SeedInvest has been a leader in the Regulation A and crowdfunding space since it first emerged as a sound alternative to traditional venture fundraising. By being out in front, SeedInvest has developed the services and community necessary to help companies be successful in their fundraising efforts. SeedInvest has been a fantastic partner for NowRx.”
During the campaign, potential investors exchanged almost 1,000 posts on the SeedInvest discussion forum with NowRx as part of their crowd-sourced due diligence. In addition to providing NowRx with capital, the high levels of investor engagement with their campaign also helped the company increase awareness and expand their footprint.
While many businesses shuttered as the economic repercussions of the pandemic were realized, NowRx flourished, witnessing a record breaking Q1 2020, generating $2.8M–the highest quarterly volume in the company’s history. Cary attributes this uptick both to the company’s cumulative growth and to COVID-19. Many people with underlying health conditions were unsurprisingly looking for a way to avoid visiting a brick-and-mortar pharmacy and risking exposure, a market fit which was not missed by SeedInvest investors.
NowRx CEO Cary Breese explained, “SeedInvest was the perfect choice for our fundraise, especially during this time, because we were able to efficiently communicate with a large number of investors with whom NowRx’s response to COVID-19 really resonated.”
This post was written by Alice Hankin on September 16, 2020
The Biggest Raise in SeedInvest History: On-Demand Prescription Pharmacy NowRx Crowdfunds $20 Million