The founders at NowRx believe that the $225 Billion retail pharmacy industry is a broken model, marked by inefficiencies and negative customer experiences in retail. Americans spend more than 1 billion hours every year waiting in line at the pharmacy, with a median wait time of 45 minutes per trip. Based on the founders' research and experience, there is a lack of sufficient collaboration between large pharmacy chains and physicians.
NowRx is a technology-driven and logistics-enabled, on-demand and vertically integrated pharmacy solution built for today’s busy consumer. With a few taps on a smartphone, prescriptions can be delivered right to the patient’s door. NowRx also enables collaboration between physicians, pharmacists, and patients to potentially affect better medication compliance and better health outcomes (Personalized PharmacySM).
NowRx generates revenue from the sales of prescriptions (for retail pharmaceutical companies, gross margins average 23%.). They plan to challenge the traditional retail pharmacy model with dispensing centers in inexpensive warehouse locations and employed drivers. To minimize delivery expense and driver run time, NowRx plans to establish multiple locations in strategic, patient-dense areas in the future.
NowRx launched its first location in Mountain View, CA, in January 2016, and plans to reach full utilization with the first 2-3 locations in a single geography before expanding to other geographies. The management believes that Door-to-door, in-person outreach to local, private practice physicians has yielded a scalable growth model.
NowRx's Mission is to provide free same day prescription delivery. They offer this service to customers with a few simple steps. Customers can download the NowRx app and complete their profile. Once they have done so, they can instruct their doctors to send their prescriptions directly to NowRx when e-prescribing. Alternatively, customers can scan a paper prescriptions securely through the NowRx app or transfer existing prescriptions.
This allows customers to get medications delivered to their home or office, within the NowRx service area. NowRx also provides reminders to help customers remember to take medications and to process refills, to help promote better health and wellness. In addition, NowRx has a video chat feature which allows customers to speak to a NowRx pharmacist.
Benefits to Customers
- Save time and avoid lines
- Same co-pay
- Same or lower out of pocket cost
- Medications supplied by leading U.S. distributor
- Major insurances accepted
NowRx founders met in in 2012 when Cary hired Sumeet as CTO at GenieDB, and worked together for 3.5 years through every life-cycle a startup can go through (product re-write, company pivot, successful funding, lack of funding, layoffs, acquisition process, and wind-down). Based on limited traction, difficulty raising additional funding, and failure of the board to successfully close on an acquisition offer, the decision was made to wind down GenieDB in 2014.
Prior to GenieDB, Cary was founder and CEO of a successful financial tech company, Trafalgar Insurance Services, which he acquired and then led through financial turnaround and ultimately acquisition by a large regional financial services firm, generating 18x return on investment (cash-on-cash).
Since winding down GenieDB, Cary and Sumeet evaluated several business ideas before launching NowRx.
Cary was exposed to pharmacy industry while working at a tech incubator focused on healthcare. NowRx believes there are no compelling reasons to maintain existing brick and mortar pharmacies and the systems that run pharmacy backend are notoriously slow and outdated. NowRx is passionate about creating the pharmacy of the future, and making a pharmacy experience that is convenient, efficient, focuses on customer experience and patient outcome. The long-term play is to improve patient medication adherence through efficient prescription management, delivery, and patient analytics.
Frequently Asked Questions
A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.
The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.
Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.
Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.
Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $1 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive shares, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by NowRx. Once NowRx accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to NowRx in exchange for your shares. At that point, you will be a proud owner in NowRx.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or government-issued identification
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
If you are investing under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.
An investor is limited in the amount that he or she may invest in a Reg CF offering during any 12-month period:
- If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
- If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.
Separately, NowRx has set a minimum investment amount of US $0.
Accredited investors investing $20,000 or over do not have investment limits.
You are a partial owner of the company, you do own shares after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.
In certain circumstances a company may terminate its ongoing reporting requirement if:
- The company becomes a fully-reporting registrant with the SEC
- The company has filed at least one annual report, but has no more than 300 shareholders of record
- The company has filed at least three annual reports, and has no more than $10 million in assets
- The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
- The company ceases to do business
However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.
Currently there is no market or liquidity for these shares. Right now NowRx does not plan to list these shares on a national exchange or another secondary market. At some point NowRx may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when NowRx either lists their shares on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.
This is NowRx's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the NowRx's Form C. The Form C includes important details about NowRx's fundraise that you should review before investing.
For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours before a closing occurs or an earlier date set by the company. You will be sent a reminder notification approximately five days before the closing or set date giving you an opportunity to cancel your investment if you had not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your shares have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your portfolio page
If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your shares have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.