- 470% gross revenue growth rate across three years (2020 compared to 2017) is 2.8x higher than the 2021 Inc. 5000 median of 167% (unaudited - comparing FY 2020 and FY 2017 gross sales, net revenue may differ)
- $10M+ total net revenue since operation began in 2014, with under $6M in total capital raised (only 2019-2020 audited), and majority of Q3 2021 revenue was subscription-based (54%)
- In Q4 2021, achieved revenue-generating contracts with CrossFit and LifeTime Fitness gyms and notable retail accounts include Whole Foods, Publix, Sprouts
- Inc. 5000 2021 company that has been featured in Forbes and Entrepreneur, and chosen by BevNet for "Best Marketing Campaign" in 2020
- Achieved a 42% online repeat purchase rate for 2020 customers with its proprietary partnership platform
- Total Amount Raised: US $1,595,174
- Total Investors: 641
- Total Round Size: US $3,648,000
- Series A :
- Minimum Investment: US $463 per investor
- : Preferred Equity
- US $25,000,000 :
- Side by Side Offering
We created O2 to meet growing demand in the sports drink market for clean, great-tasting hydration without the "junk".
We believe too many sports drinks are unhealthy, bad for your body, and not very Earth-friendly; too many calories, too much sugar, filled with syrupy-tasting chemicals - and packaged in single-use plastic that’s wrecking the planet.
O2 makes great-tasting, clean hydration with 1g total sugar, 15 calories, and 20% more electrolytes than some big brands. Our patent-pending oxygenation process delivers a crisp, refreshing mouthfeel that leaves you feeling light without the carbonated bloat. We’re 100% carbon neutral with a digital-first business model and product line we believe are fit for the 21st century.
Most drink brands have high marketing and customer acquisition costs while battling for retail shelf space. Our approach offers an alternative, with growth achieved through innovative marketing campaigns, proprietary partnership tech, and a presence in large gyms (LifeTime) and thousands of independent locations (CrossFit).
O2 has increased in revenue from the start of our operation in 2014 through 2020, and grew gross revenue from $1.8M in 2019 to $5M+ in 2020. Our growth led to O2 being featured in the Inc. 5000 2021 list. Our proprietary partnership platform helped grow online customers 5x and helped thousands of gyms through COVID. Our industry innovations earned coverage in Entrepreneur ("Growth During A Crisis: How O2 Founder Dave Colina 5x’d His Business") and Forbes ("How O2 Helped Keep America’s Gyms Open"), as well as BevNET’s Best Beverage Marketing Campaign award in 2020.
Today, O2 is sold in thousands of gyms and retailers. We aim to optimize both DTC and gym sales to create a powerful flywheel to drive awareness, trial, and loyalty without the capital intensity of other brands.
A Side by Side offering refers to a deal that is raising capital under two offering types. Investments made through the SeedInvest platform are offered via Regulation CF and subject to investment limitations further described in the Form C and/or subscription documents. Investments made outside of the SeedInvest platform are offered via Regulation D and requires one to be a verified accredited investor in order to be eligible to invest.
US $772,435 (under Reg CF only)
Investors who invest less than $500,000 will have their securities held in trust with a Custodian that will serve as a single shareholder of record. These investors will be subject to the Custodian’s Account Agreement, including the electronic delivery of all required information.
BONUS PERK: All investments between $1,000 and $9,999 made by 11:59 PM ET on January 21, 2022 will be automatically bumped up to the next corresponding tier.
$1,000 - $4,999 Investment:
32oz O2 Pure Hydration™ branded tumbler and 4 free cases of O2.
Retail value: $178.95
$5,000 - $9,999 Investment:
1 year personal subscription to O2 and 32oz O2 Pure Hydration™ branded tumbler.
Retail value: $380.47
$10,000 - $24,999 Investment:
O2 Pure Hydration™ branded YETI® Tundra® 45 cooler (white), 1 year subscription to O2, 32oz O2 Pure Hydration™ branded tumbler, Hyperice Hypervolt, a seat at O2’s R&D roundtable on the next O2 flavor/product line.
Retail value: $929.46
$25,000 - $249,999 Investment:
O2 Pure Hydration™ branded mini-fridge with 1 year personal subscription, 10 x 1 year subscriptions to gift to friends, O2 Pure Hydration™ branded YETI® Tundra® cooler (white), 32oz O2 Pure Hydration™ branded tumbler, Hyperice Hypervolt + Normatec 2.0 Leg Recovery System, lifetime 30% discount to O2, and a yearly one-on-one video chat session with CEO and founder Dave Colina.
Retail value: $5,583.26
$250,000 and Above Investment:
Free O2 for life and an all-expenses-paid weekend trip for two to a “Mile-High Meet N’ Greet” with CEO and founder Dave Colina in Denver, CO.
Retail value: Priceless
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
Please note that due to share price calculations, some final investment amounts may be rounded down to the nearest whole share - these will still qualify for the designated perk tier. Additionally, investors must complete the online process and receive an initial email confirmation by the deadline stated above in order to be eligible for perks.
The graph below illustrates theor the of O2 Pure Hydration's prior rounds by year.
O2’s products have 2,900+ 5-star reviews, evidence that people want a delicious, health-forward sports drink. Set as a premium brand, our 42% repeat purchase rate in 2020 shows our product resonates. Our customers are of a high-income demographic, skewing female.
Many O2 fans learn about us in their gyms. We are available in 1,300 U.S. gyms, and our recent launch with CrossFit’s Affiliate Partner Network opens the door to 15,000 more potential gyms. Our drink may often be the only brand sold in a gym, which can enable sales differently than traditional retail. We aim to boost our DTC business through high-impact brand awareness.
In Q4 2021, we signed a partnership with LifeTime Fitness - a gym chain with 150 locations and 30,000 employees. We can leverage in-gym sales experience to help O2 expand its presence in franchise fitness spaces.
The customer growth, along with DTC and Amazon sales, will facilitate our plan to add more traditional retail accounts - of which there are 50,000+ in the US alone. Our consumer base and 60%+ gross product margin means we project a lower cost to realize revenue than the channel historically commands. Current retail accounts include Whole Foods, Publix, and Sprouts.
O2 Recovery: Oxygenated, non-carbonated sports drink alternative with only 10 non-GMO ingredients, 1g sugar, 15 calories, and 550mg electrolytes in four flavors (caffeine-free Lemon Lime and Blackberry Currant, & caffeinated Grapefruit Ginger and Orange Mango).
O2 Premium Still Water (New): Oxygenated, unflavored mineral water with 90+ purified ocean minerals and plant-based electrolytes; we see it as premium bottled water, in a can.
O2 Hydration Mix (New): On-the-go powdered electrolyte mix available in Peach Pear, Pomegranate Guava + Energy, & Lemon Ginger + Immunity Mix with probiotics, zinc, and vitamins C + D for cold & flu defense.
Investors will not have certain protective provisions or the ability to vote as a separate class on certain corporate actions that other Investors of the company will have the protective provisions and the ability to. Holders of Series A-2 Preferred Stock will not be able to vote as a separate class on corporate actions that (1) alter the rights, powers or privileges of the Preferred Stock in a way that adversely affects the powers, rights, or preferences of the Preferred Stock; (2) authorize or create any new class or series of stock having rights, powers, or privileges that are senior to or on a parity with any series of Preferred Stock; (3) redeem or repurchase any shares of capital stock (other than repurchases of shares from former employees, officers, directors, consultants, or other persons who performed services for the Company); (4) declare or pay any dividend or otherwise make a distribution to holders of stock; (5) increase or decrease the number of directors of the Corporation; or (6) liquidate, dissolve, or wind up the business and affairs of the Company, or effect any Deemed Liquidation Event. Holders of Series A-1 Preferred Stock, which is composed of the company's previous investors, will have all of the described protective provisions, and will have the ability to vote as a separate class on corporate actions of each of the above types. Holders of Series A-2 Preferred Stock will have the ability to vote as a separate class only on actions that increase or decrease the authorized number of shares of Preferred Stock, or any additional class or series of capital stock of the Company, unless the same ranks junior to the Series A-2 Preferred Stock with respect to its powers, rights, and preferences. The protective provisions afforded to holders of Series A-1 Preferred Stock are expected to serve holders of Series A-2 Preferred Stock, as the economic exposure of holders of Series A-1 Preferred Stock is similar to that of holders of Series A-2 Preferred Stock, except that the Series A-1 Preferred Stock has a conversion price that is discounted by 20% compared to that of Series A-2 Preferred Stock. The Company expects that its internal stakeholders and holders of Series A-1 Preferred Stock will enact their protective provisions for actions that align with the benefit of the holders of Series A-2 Preferred Stock, although no guarantee can be made.
References to Gross Revenue may be materially different than Net Revenue. The Company’s references to Gross Revenue includes discounts, coupons, returns, and promotions. The corresponding Net Revenue figures may be materially different from the Gross Revenue figures referenced throughout the marketing materials. For further information related to Gross Revenue and Net Revenue actuals and projections, please refer to the “Financials” documents in the Data Room.
The development and commercialization of the Company’s products and services are highly competitive. It faces competition with respect to any products that it may seek to develop or commercialize in the future. Its competitors include major companies worldwide. The personal care market is an emerging industry where new competitors are entering the market frequently. The beverage market is also competitive and subject to numerous competitors. Many of the Company’s competitors have significantly greater financial, technical and human resources and may have superior expertise in research and development and marketing products and thus may be better equipped than the Company to develop and commercialize services. These competitors also compete with the Company in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, the Company’s competitors may commercialize products more rapidly or effectively than the Company is able to, which would adversely affect its competitive position, the likelihood that its services will achieve initial market acceptance and its ability to generate meaningful additional revenues from its products and services.
Product safety and quality concerns, including concerns related to perceived quality of ingredients, or product recalls could negatively affect the Company’s business. The Company’s success depends in large part on its ability to maintain consumer confidence in the safety and quality of all its products. The Company has rigorous product safety and quality standards. However, if products taken to market are, or become, contaminated or adulterated, the Company may be required to conduct costly product recalls and may become subject to product liability claims and negative publicity, which would cause its business to suffer. In addition, regulatory actions, activities by nongovernmental organizations and public debate, and concerns about perceived negative safety and quality consequences of certain ingredients in its products may erode consumers’ confidence in the safety and quality issues, whether or not justified, and could result in additional governmental regulations concerning the marketing and labeling of the Company’s products, negative publicity, or actual or threatened legal actions, all of which could damage the reputation of the Company’s products and may reduce demand for the Company’s products.
The Company operates in a business that is highly regulated and subject to liability concerns. Compliance with regulatory requirements and changes in regulations could result in expenses and in diversion of management attention to the operations of the business. As a food production company, all of the Company's products must be compliant with regulations by the Food and Drug Administration (FDA). The Company must comply with various FDA rules and regulations, including those regarding product manufacturing, food safety, required testing, and appropriate labeling of the products. It is possible that regulations by the FDA and its interpretation thereof may change over time. As such, there is a risk that the Company's products could become non-compliant with the FDA’s regulations and any such non-compliance could harm the business.
A product recall or an adverse result in litigation could have an adverse effect on the Company's business. The adverse effect depends on the costs of the recall, the destruction of product inventory, competitive reaction, and consumer attitudes. Even if a product liability claim is unsuccessful or without merit, the negative publicity surrounding such assertions could adversely affect their reputation and brand image. The Company also could be adversely affected if consumers in their principal markets lose confidence in the safety and quality of their products.
Maintaining, extending, and expanding the Company's reputation and brand image are essential to the Company's business success. The Company seeks to maintain, extend, and expand their brand image through marketing investments, including advertising and consumer promotions, and product innovation. Increasing attention to marketing could adversely affect the Company's brand image. It could also lead to stricter regulations and greater scrutiny of marketing practices. Existing or increased legal or regulatory restrictions on the Company's advertising, consumer promotions and marketing, or their response to those restrictions, could limit their efforts to maintain, extend and expand their brands. Moreover, adverse publicity about regulatory or legal action against the Company could damage the Company's reputation and brand image, undermine their customers’ confidence and reduce long-term demand for their products, even if the regulatory or legal action is unfounded or not material to their operations.
In addition, the Company's success in maintaining, extending, and expanding the Company's brand image depends on their ability to adapt to a rapidly changing media environment. The Company increasingly relies on social media and online dissemination of advertising campaigns. The growing use of social and digital media increases the speed and extent that information or misinformation and opinions can be shared. Negative posts or comments about the Company, their brands or their products on social or digital media, whether or not valid, could seriously damage their brand and reputation. If the Company does not establish, maintain, extend and expand their brand image, then their product sales, financial condition and results of operations could be adversely affected.
The Company may be unable to maintain, promote, and grow its brand through marketing and communications strategies. It may prove difficult for the Company to significantly increase the number of customers that it serves or to establish itself as a well-known brand. Additionally, the personal care and beverage markets may be markets in which customers will not have brand loyalty.
Failure by the Company's transportation providers to deliver their products on time or at all could result in lost sales. The Company currently relies upon third-party transportation providers for a significant portion of their product shipments. The Company utilization of delivery services for shipments is subject to risks, including increases in fuel prices, which would increase their shipping costs, employee strikes, and inclement weather, which may impact the ability of providers to provide delivery services that adequately meet their shipping needs. The Company may, from time to time, change third-party transportation providers, and the Company could therefore face logistical difficulties that could adversely affect deliveries. The Company may not be able to obtain terms as favorable as those they receive from the third-party transportation providers that they currently use or may incur additional costs, which in turn would increase their costs and thereby adversely affect their operating results.
The Company’s expenses will significantly increase as they seek to execute their current business model. Although the Company estimates that it has enough cash and inventory runway to continue operation, they will be ramping up cash burn to promote revenue growth, further develop R&D, and fund other Company operations after the raise. Doing so could require significant effort and expense or may not be feasible.
The Company’s cash position is relatively low. The Company has approximately $90,000 in cash as of November 30, 2021, equating to approximately 1-2 month(s) of runway. The Company believes that it is able to continue extracting cash from sales of inventory and income from accounts receivable to extend its runway, as well as increase its cash balance via investments received in this round. The Company could be harmed if it is unable to meet its cash demands, and the Company may not be able to continue operations if they are not able to raise additional funds.
The Company projects aggressive growth and meeting these projections are subject to numerous risks, many of which are outside of the Company’s control. If these assumptions are wrong and the projections regarding market penetration are too aggressive, then the financial forecast may overstate the Company's overall viability. In addition, the forward-looking statements are only predictions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Investors should not rely on the Company’s financial projections in making an investment decision.
The auditing CPA has included a “going concern” note in the Audited Financials. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern which contemplates continuation of operations, realization of assets, and payment of liabilities in the ordinary course of business. As shown in the accompanying financial statements, the Company has incurred certain net losses since inception. The Company's ability to continue as a going concern is dependent on meeting its obligations as they become due from cash generated from operations and/or through raising capital and ultimately achieving sustained profitable operations. During 2021, the Company intends to raise additional capital through various series of preferred stock offerings as well as participate in a crowdfunding campaign; however, it is undetermined how much capital is expected to be raised from future financing campaigns. Management believes the Company may continue to operate in its present form as a result of such changes. However, no assurance can be given that management's actions will result in sustained profitable operations or additional capital will be available when needed or on acceptable terms. If management is not successful with its plan, it is possible this could result in the Company needing to satisfy its obligations through the liquidation of its assets at values less than currently presented.
The outbreak of the novel coronavirus, COVID-19, has adversely impacted global commercial activity and contributed to significant declines and volatility in financial markets. The coronavirus pandemic and government responses are creating disruption in global supply chains and adversely impacting many industries. The outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate material adverse impact of the novel coronavirus. Nevertheless, the novel coronavirus presents material uncertainty and risk with respect to the Funds, their performance, and their financial results.
Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.
Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for theseshares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company 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 the company either lists their shares on an exchange, is acquired, or goes bankrupt.
The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.
Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.
You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only be obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events through continuing disclosure that you can use to evaluate the status of your investment.
Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company's employees, including its management. You should carefully review any disclosure regarding the company's use of proceeds.
Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.
Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company's board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.
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 $5 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 securities, 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 O2 Pure Hydration. Once O2 Pure Hydration accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to O2 Pure Hydration in exchange for your securities. At that point, you will be a proud owner in O2 Pure Hydration.
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
- Your accredited investor status
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement) or debit card information, unless paying via a Wire transfer.
Non-accredited investors are limited in the amount that he or she may invest in a Reg CF offering during any rolling 12-month period:
- If either the annual income or the net worth of the investor is less than $107,000, the investor is limited to the greater of $2,200 or 5% of the greater of his or her annual income or net worth.
- If the annual income and net worth of the investor are both greater than $107,000, the investor is limited to 10% of the greater of his or her annual income or net worth, to a maximum of $107,000.
Separately, O2 Pure Hydration has set a minimum investment amount of US $463.
Accredited investors do not have any investment limits.
You are a partial owner of the company, you do own securities 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 securities. Right now O2 Pure Hydration does not plan to list these securities on a national exchange or another secondary market. At some point O2 Pure Hydration 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 O2 Pure Hydration either lists their securities 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 O2 Pure Hydration'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 O2 Pure Hydration's Form C. The Form C includes important details about O2 Pure Hydration'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 prior to the offering end date or an earlier date set by the company. You will be sent a notification at least five business days prior to a closing that is set to occur earlier than the original stated end date giving you an opportunity to cancel your investment if you have 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 securities 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 account's portfolio page by clicking your profile icon in the top right corner.
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 securities 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 account's portfolio page by clicking your profile icon in the top right corner.