CARROT is a mobile wellness program that rewards people financially for walking and meeting personal activity goals.
4(a)(6) offering provided by Netcapital Funding Portal, Inc.
A mobile gaming company has successfully “gamified” health and wellness, delivering three times the engagement at less than one-sixth the cost of traditional programs.
CARROT serves as an effective corporate wellness program for employers of all sizes. At the same time, non-profit hospitals and similar organizations utilize CARROT as a community health and wellness initiative.
Unlike anything in the marketplace, CARROT’s “set-it-and-forget-it” approach uses individualized goals and instant gratification to motivate even the most sedentary individual.. CARROT leverages the viral advantages of mobile technology to quickly onboard small employers while offering a dynamic, scalable solution for the world’s largest corporations.
And for non-profit hospitals – who are mandated by the Affordable Care Act to meet the health needs of the communities they serve – CARROT serves as a compelling, affordable and measurable tool to engage the public.
Learn more about CARROT at carrotwellness.com
Finally – A Program For ALL
Rising employer healthcare costs have motivated companies to increasingly invest in health and wellness initiatives. Unfortunately, engagement in such programs is a continual challenge, especially among the 20% of employees who are responsible for 80% of a company’s health care spending. Typical wellness initiatives – despite the average annual investment of $700 per employee in incentives – attract only those employees who are already healthy.
That’s where CARROT enters the picture. CARROT provides employers with a wellness solution that has a track record of incentivizing even the most sedentary staff members to lead more active lives, achieving off-the-charts participation and engagement. Thanks to its unique “gamified” approach, CARROT has the opportunity to become the industry’s first affordable, engaging program that appeals to ALL members of an organization.
The challenges are just as great, if not greater, for community health organizations. ACA requirements dictate that non-profit hospitals invest annually in community health initiatives that are targeted, affordable and measurable. The marketplace, however, offers few solutions geared to these hospitals.
For those non-profit hospitals, CARROT delivers a simple-to-manage program that appeals to everyone, regardless of gender, age, socioeconomic status or level of activity. CARROT keeps all participants engaged and on track, and since it’s built on an entirely mobile platform, it offers the ability to monitor progress in real time.
Gamification Drives Results
From the participant’s perspective, CARROT is a fun and addictive mobile app that provides “instant gratification” for achieving personalized activity goals. They use the virtual “CARROT currencies” to enter contests, compete in challenges, and purchase digital gift cards that are available right on the app. Barriers to participation have been eliminated at every turn – in fact, users are rewarded even if the app isn’t turned on or running in the background.
From the client’s ’s perspective, CARROT is a simple, easy-to-manage program. Because most rewards are digital, HR requirements are minimized. Clients also like that CARROT, unlike traditional activity-based programs, is fully inclusive, allowing any individual, regardless of level of ability or activity, to fully participate. And most importantly, CARROT works: participants increase their daily activity by nearly 23 percent in just the first 60 days and demonstrate continuous activity progress through the first nine months in the program.
CARROT’s proprietary logic maximizes employee engagement while minimizing the employer’s incentives budget. Powered by the unique application of mobile technology and the underlying intelligence represented, CARROT is designed to reduce healthcare costs, absenteeism and presenteeism, while improving productivity and general overall well being.
The corporate wellness services industry has experienced rapid growth in recent years. In 2011, the industry generated $1.8 billion in revenue while today, annual revenue is about $8 billion and climbing. Organizations that offered wellness programs in 2016 invested an average of nearly $700 per employee in incentives.
At the same time, CARROT’s opportunity for growth in the community health & wellness space is immense. The requirement that non-profit hospitals must make investments in community health has resulted in an average annual spend of $6.4-million per hospital, including $1.7-million per hospital for community outreach/engagement initiatives.
Because of CARROT’s scalability and low implementation costs, organizations of any size can benefit from the program. The initial primary target market for the corporate program has been healthcare organizations and educational institutions. These industries are uniquely focused on wellness and are typically open to the innovative use of new technologies. Further, having referenceable customers in these industries provides credibility and exposure needed to convert larger employers both within and outside of these industries.
CARROT’s next corporate market of focus will be self-insured companies with fewer than 1,000 employees. These buyers have an urgent need to address skyrocketing employee health care costs and are able to make quick purchasing decisions.
On the community market side, CARROT is first targeting non-profit hospitals regionally as well as those who currently make more sizable annual community health investments. As this information is readily available in public documents, targeting will be systematic and aggressive.
By (1) establishing a visible presence at national benefits/HR/community health conferences, (2) launching a targeted digital ad campaign, (3) leveraging referrals from satisfied clients, and (4) connecting directly with employee benefits brokers, we will reach these critical decision makers.
Pricing for CARROT is simple, easy to understand, and extremely affordable by industry standards. Pricing entails an initial implementation fee, plus an ongoing “per employee per year” license fee for corporate clients. Community clients pre-purchase licenses in bundles beginning at 2,000 participants.
One of Michigan’s largest and most-respected employers, Henry Ford Health System, launched a six-month CARROT Health & Wellness pilot program at West Bloomfield Hospital in March 2016. HFHS’s intent was to evaluate the program for potential company-wide launch in January 2017.
When CARROT achieved more than 30% participation after just six weeks (six times greater than their typical participation rate), HFHS cut short the pilot and signed a multi-year contract to provide CARROT to its 25,000 employees. Today, Oakland University, the United Auto Workers (UAW) International, DTE Energy, Macomb County Government, The State Bank, and several others now utilize CARROT’s program to drive healthier behaviors among their employees.
In April 2018, Beaumont Health launched the first CARROT Community Health & Wellness program to support the outreach efforts of its eight regional hospitals in Southeast Michigan.
Since June 2016, more than 80,000 CARROT licenses have been purchased by about two dozen organizations. The program is truly global with licensed users participating in the United States, Canada, Russia, Turkey, Brazil, Norway, Sweden, Switzerland, Austria, and several other countries.
CARROT’s potential impact on the industry crystallized in a competition that included 100+ startups. An audience of more than 400 CEO's and healthcare professionals named CARROT the “Most Innovative Solution” to engage millennials in health care at the 2016 Crain’s Detroit Business Health Care Leadership Summit.
The CARROT Team
CARROT benefits from a talented and passionate team that includes hands-on contributions from designers and programmers, as well as counsel from trusted industry experts. Leading the day-to-day activities are Founder/CEO Michael Antaran, VP Mike Murray, and developers Rob Kerr and Ryan Pelavin.
A lifelong Metro Detroiter, Michael Antaran earned degrees from Wayne State University (BS, Mechanical Engineering) and Oakland University (MSME) before spending 15 years as a powertrain engineer with Chrysler and General Motors. He took the lessons learned in the auto industry – primarily, a focus on customer experience – to successfully guide his own company. In 2014, Antaran was selected by Goldman Sachs to participate in its 10k Small Business Program in Detroit. The following year, Antaran was one of just 16 U.S. entrepreneurs selected to participate in a special business development program hosted jointly by Goldman Sachs and Bloomberg in New York City. In 2016, his presentation at the Crain’s Detroit Business Health Care Leadership Summit allowed CARROT to take top honors as the “Most Innovative Solution” to connect Millennials with health care. He has also been recognized by Crain’s Detroit Business as one of the “50 Names to Know in Information Technology”.
With a diverse background that includes more than a decade in the health care industry and experience supporting small businesses, Mike Murray is well-positioned to serve as CARROT’s Vice President for Marketing & Communications. His background includes 13 years leading marketing and communications efforts for a large regional health care provider and nine seasons directing media services for the NFL’s Detroit Lions. The University of Michigan graduate is responsible for ensuring the consistent appearance and performance of the company’s brands across all lines of communication, and his hands-on contributions impact all sales activities, business development, product development, marketing and public relations.
For the past two years, Rob Kerr has played a critical role in the development of the CARROT Wellness mobile app. As CARROT’s lead developer, the Michigan native spent more than 10 years as a developer for Microsoft before starting his own company. Kerr is a full-stack (both front end and back end) developer for both the iOS and Android platforms.
Ryan Pelavin brings a wealth of valuable experience to his role as CARROT’s backend specialist. After graduating from the University of Michigan (Ann Arbor), Pelavin moved to the west coast where he spent a decade as a developer for Microsoft. Pelavin specializes in supporting complex, secure systems and will play an instrumental role in CARROT’s growth.
CARROT is Turning Heads
On a number of fronts, CARROT and its team have already earned valuable recognition and credibility that will serve the company well in its mission to be a disruptive industry force:
CARROT’s potential impact on the industry crystallized in a recent competition that included more than 100 startup companies. An audience of more than 400 health care CEO's and HR professionals named CARROT the “Most Innovative Solution” to engage millennials in health care at the 2016 Crain’s Detroit Business Health Care Leadership Summit.
CARROT was named a Google Days Regional Finalist in 2016; and Founder and CEO Michael Antaran was honored as one of the “50 Names to Know in Information Technology” by Crain’s Detroit Business.
CARROT was one of just 32 U.S. companies selected to participate in a Small Business Roundtable event featuring Warren Buffet, Michael Bloomberg, and Twitter/Square CEO Jack Dorsey in New York in June 2016. The previous year, CARROT was one of just 16 companies invited by Goldman Sachs and Bloomberg LP to participate in an exclusive Small Business Coaching Session in NYC.
The ability to tap into the resources and expertise of organizations such as Goldman Sachs and Bloomberg LP have helped position CARROT as a potential marketplace leader while providing clarity for its vision of the future.
Be a Part of CARROT
This is an offering of Class A Units, under registration exemption 4(a)(6), in CARROT pass, LLC. This offering must raise at least $10,000 by November 23, 2018 at 11:59pm ET. If this offering doesn’t reach its target, then your money will be refunded. CARROT may issue additional securities to raise up to $66,150, the offering’s maximum.
If the offering is successful at raising the maximum amount, then the company’s implied valuation after the offering (sometimes called its post-money valuation) will be:
1,013,705 units × $4.90 per unit = $4,967,155 implied valuation
- CARROT – with its mobile, “set-it-and-forget-it” platform delivering exceptional engagement – is ideally positioned to help companies of all sizes hold the line on rising employee health care costs by delivering an affordable, cost-effective program.
- CARROT is already off to a fast start with more than 15 organizations (including Henry Ford Health System, the UAW International, Oakland University and Takeda Pharmaceuticals) currently offering the program to 60,000-plus paid participants in the United States, Canada, Norway, Sweden, Switzerland, Austria, Finland, the Netherlands, and other countries.
- Utilizing the tenets of mobile gaming technology to drive engagement and organic growth, CARROT’s patent-pending program includes personalized activity goals, individual challenges, team leaderboards, fantasy sports contests, digital gift cards and budget-neutral rewards from employers and local businesses – making the program essentially impossible for any competitor to replicate.
CARROT’s SEC Filings
The Offering Statement is a formal description of the company and this transaction. It’s filed with the SEC to comply with the requirements of exemption 4(a)(6) of the Securities Act of 1933.
We’re also required to share links to each of the SEC filings related to this offering with investors.
CARROT has done prior raises on Netcapital
- Sold 8526 shares at $4.90 ending on April 2, 2018 for a total of $41,777.40 (See offering)
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Understand the Risks
Be sure to understand the risks of this type of investment. No regulatory body (not the SEC, not any state regulator) has passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials or information posted herein. That’s typical for Regulation CF offerings like this one.
Neither Netcapital nor any of its directors, officers, employees, representatives, affiliates, or agents shall have any liability whatsoever arising from any error or incompleteness of fact or opinion in, or lack of care in the preparation or publication of, the materials and communication herein or the terms or valuation of any securities offering.
The information contained herein includes forward-looking statements. These statements relate to future events or to future financial performance, and involve known and unknown risks, uncertainties, and other factors, that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the company’s control and which could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. No obligation exists to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.