D3VC Algorithm Success: Cabinet Health’s Sustainable Impact and Investment Progress

By now, you have heard that we are launching an AI-driven fund, but did you know that we’ve been investing based on the fund’s algorithm and our investment committee’s decision process for a year now? In this email, we want to provide an example of one of our early investments, Cabinet Health.

Our proprietary algorithm identified Cabinet Health as a promising investment opportunity in August 2022. The week it appeared on our list, there were 568 active deals, and Cabinet Health scored an 83.1% on the algorithm. After further diligence, our team decided to invest. Since then, the company has made significant strides in its mission to revolutionize the healthcare industry with sustainable solutions.

Cabinet Health is a New York-based sustainable healthcare company that has developed a refillable and compostable medicine system. Their mission is to lessen the environmental impact of plastic medicine bottles, which currently contribute to a significant amount of plastic waste. Cabinet Health’s innovative solution involves delivering medication to customers in compostable pouches, which can then be stored in reusable glass containers.

Since our investment, Cabinet Health has demonstrated impressive growth and resilience. They have successfully raised an additional $17 million in growth funding, led by the Global Impact Fund, to fuel their rapid expansion into new categories and retail channels. This fundraising round brought the company’s total funding to $23.6 million to date. The funds have been used to further their mission of eliminating single-use plastic from the medicine and healthcare industry.

In terms of sales performance, Cabinet Health has proven its concept with investors and consumers, generating an average of 19% growth year-over-year with its over-the-counter offerings. Cabinet Health has also launched its first-ever nationwide pill bottle recycling program to address pharmaceutical plastics.

Through this program, anyone in the U.S. can request a recycling bag from Cabinet Health, ship back their old, empty plastic pill bottles, and have them either recycled or upcycled into an evolving art sculpture.

Prior to our investment, Cabinet Health made a notable appearance on the popular TV show “Shark Tank,” where they secured an investment of $500,000 for a 2.5% equity stake in the company. This exposure has led to increased interest in their mission and
products, with various school groups, medical experts, and environmental specialists reaching out to contribute to their goals.

Cabinet Health’s products are currently available online through their official website, via online retailers such as Grove Collaborative and Amazon, and in-store in over 700 CVS locations nationwide. They are also planning more retail partnerships in 2023.

In conclusion, we believe Cabinet Health is a testament to the power of our investment algorithm in identifying promising companies that are not only financially viable but also contribute positively to society. We are excited about the future of Cabinet Health and look forward to sharing more updates with you.

Want to be a part of D3VC? Then join our waitlist today. Our goal is to invest in 200 companies with the potential to scale just like Cabinet Health.

Sherwood Neiss

Please note that this email is intended solely for informational purposes and should not be considered as an offer to sell or a solicitation to buy securities. Any investment in D3VC or its affiliated funds will be made solely to accredited investors pursuant to Regulation D, Rule 506(c) of the Securities Act of 1933. Participation in our investment opportunities is subject to verification of accreditation status and compliance with applicable securities laws. Please consult with your legal and financial advisors before making any investment decisions.

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