See the presentation a serial entrepreneur used to raise $20 million from Bessemer and Founders Fund for his solution for Americans living with chronic pain
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- Clearing, a chronic pain management startup, raised $20 million in seed funding from Bessemer and Founders Fund on Tuesday.
- The round valued the just-launched startup at $100 million.
- See the pitch deck cofounder Avi Dorfman used to convince investors to back his latest startup.
A serial entrepreneur thinks he can unseat CVS, Walgreens, and Rite Aid by helping treat chronic pain online.
Avi Dorfman, cofounder of real estate brokerage company Compass who is currently in a legal battle over his stake, said Tuesday that his latest project Clearing raised $20 million in seed funding at a $100 million valuation. Bessemer and Founders Fund led the round, which also included several angel investors.
Clearing is essentially an online pharmacy for topical pain relief cream prescribed by its network of medical professionals, Dorfman explained. Over time, he said he hopes to delve deeper into treating more intractable pain, but for now, he is focused on types of chronic pain that could not otherwise be treated with Bengay or physical therapy.
As other direct-to-consumer startups like Ro and Hims eye the ever-growing digital health market for acquisition targets, Clearing is taking a different approach by focusing specifically on treating pain. Bessemer’s Steve Krauss, who invested in Clearing, said that he thinks the company can still make plenty of money in a niche part of healthcare because of the sheer number of Americans who currently suffer from chronic pain.
Chronic pain is often treated with highly addictive medications including opioids. Because of the potential for abuse, current regulations prohibit telehealth companies from prescribing these classes of drugs to patients without meeting them in person first.
“If you are a pain sufferer, your daily existence, the social and emotional aspects, it’s different than someone who has hair loss or erectile dysfunction, no offense, and that’s really important,” Krauss told Insider.
Here is the presentation Dorfman used to raise $20 million in seed funding at a $100 million valuation from Bessemer and Founders Fund.
Dorfman and Hascalovici, who is a neurologist that specializes in treating pain, cited 2018 CDC data that estimated roughly 50 million Americans suffer from chronic pain.
Find out more about the CDC data here.