Slovak companies Noili and DNA ERA seek capital for further growth
23/03/2022
Following initial growth capital from a fund managed by CB Investment Management, two young Slovak companies, DNA ERA and Noili, now have the opportunity to raise additional investment from private investors on Crowdberry's platform. The total value of the new capital, which will enable these startups to continue expanding into new markets and broaden their product portfolios, will reach almost €1.3 million.
The investment fund managed by CB Investment Management (CB Growth ONE) focuses on supporting innovative Slovak companies with the potential to establish themselves and grow internationally. The fund has raised €14.2 million in capital for 21 companies to date, including Glycanostics, altFINS, Artzenal, SmartHead, Boataround and others. These companies have proven their ability to unlock and grow their potential, even across the Crowdberry ecosystem, which provides innovative and quick access to smart capital from private investors through an investment platform.
That is the case of the biotechnology company DNA ERA and the Slovak premium cosmetics brand Noili. Both of these brands bring an innovative approach to health care and a balanced lifestyle. Health protection, as well as access to information and knowledge about one's own body, play a key role in the prevention of many diseases and improving the quality of life. Pandemics, as well as the unsatisfactory state of healthcare systems, have naturally led to growing interest among the public in innovative solutions that help to complement the overall picture and information about one’s own body.
DNA ERA – Personalised services using DNA analysis to reveal health risks, predispositions and athletic potential
Slovak company DNA ERA, founded by geneticist Michaela Šišková and her husband, the mathematician Jakub Šiška, focuses on direct genetic analysis of DNA using its own software for data interpretation. Thanks to this, it can reveal predispositions to diseases, genetic risks and detect sporting potential. Currently, it has introduced a new tool for comparing sports genes in collaboration with professional athletes.
An initial investment of €250,000 from CB Investment Management was used to improve the customer experience, design a new web application that focused on data interpretation and enter the Czech market. In addition to meeting these objectives, the company closed 2021 with turnover of €684,000. “We are getting a lot of positive feedback from people who have decided to do more for their health and their future. Our results prove that there is huge interest in genetic analysis. We are moving forward and have big plans for the next period,” says CEO Michaela Šišková.
“The pandemic has shown that healthcare capacity has its limits and solutions like DNA ERA are making available to people the market’s potential. This is confirmed by the significant increase in sales of DNA ERA tests achieved in 2021,” says Jakub Bachratý, Investment Manager at Crowdberry. “Thanks to the new investment, DNA ERA will be able to continue to expand and improve its portfolio of products and services. For investors, this is an opportunity to enter a company at an early stage of growth with a high-quality team of founders, which could result in higher valuation in case of an eventual exit.”
The company intends to use the investment from Crowdberry investors, with a target amount of €1 million, to develop its product portfolio and further expand in the rapidly growing market. [1]
Noili – Transparency, minimalism and innovation in everyday skin care
Noili is a Slovak cosmetics brand focused on the production of premium everyday skin care products. Its development is founded on scientific and medical knowledge, which is based on the exclusive use of natural-based active ingredients with no chemical preservatives. The quality of the products and the customer buying experience make Noili a premium brand with a rapidly growing customer base. The organic skin care market is characterised by high sales margins and global growth that is 80% faster than any other segment of the beauty industry. [2]
The first Noili products were introduced in 2018, when the founder, Dr Zuzana Gyárfášová, developed Noili’s first beauty oil, which quickly established itself on the market. Later, the company's leadership in business development was strengthened by Oliver Fodor, who previously had built up the successful Perceptive Toys (Vnímavé hračky) brand (now part of the Toyeto chain). With initial growth capital from CB Investment Management, Noili was able to achieve significant growth. “It opened up further opportunities for us to support the growth of the company and the brand as a whole. We have managed to standardize our corporate processes, enter the Czech market and establish cooperation with several influencers, especially with Daniela Peštová,” says Zuzana Gyarfášová, founder of Noili.
The brand plans to expand its collaboration with the famous top model. “The upcoming product cooperation with an international top model is absolutely unprecedented in the regional market. We are happy to be a part of Noili's success story from the very beginning,” comments Branislav Hóz, Crowdberry's Investment Manager.
Noili has established a solid position in Slovakia and has seen rapid growth in the Czech Republic in recent months. Given the dynamics of the market and the interest of distributors in selling Noili products in their regional retail networks, it can be assumed that the brand will soon succeed in fulfilling its international ambitions. Once the business plan has been realised, Noili would be one of the most attractive acquisition targets in the region in terms of brand perception and its own customer base. Further growth investment to the targeted amount of €270,000 through the Crowdberry investment platform should enable the brand to achieve these goals.
[1] The global genetic testing market value is expected to grow at a CAGR of 7.6% by 2030 , source: Globenewswire
[2] 8.5% CAGR 2021-2026, McKinsey & Company, May 2020