Hydration startup Drip Drop Inc. raises 2.3 million in just 10 days
SAN FRANCISCO, July 12, 2013 /PRNewswire/ -- Only 10 days after announcing a $3 million Series A-1 financing round, Drip Drop Inc., inventor of medical grade hydration products, has executed the initial close on $2.3 million from a group of investors led by Pacific Advantage Capital, with the round closing July 29th. New funds will be used to add key personnel and scale the company's operating infrastructure, supporting an expansion of leading hospital and pharmacy distribution. The close comes just weeks into Anne Kallin Zehren's tenure as CEO.
Drip Drop® is an innovative rehydration solution that combines best-in-class medical technology with great taste. Developed by Eduardo Dolhun MD, a Mayo trained physician and Stanford Adjunct Assistant Clinical Professor, Drip Drop's formula helps prevent dehydration, maintain electrolyte balance, and replenish fluids lost through illness or activity. Tested worldwide in the most challenging circumstances, Drip Drop® has won early adoption by a broad spectrum of users that include the Stanford University Medical Center, UCSF Medical Center, elite athletes, U.S. Special Forces, humanitarian workers, pharmacists, and patients with chronic illness.
"This investment allows us to continue fast-tracking our work with the country's top medical institutions, retailers, and influencers," said Zehren, who started at Drip Drop in April. "It speaks volumes about Drip Drop's potential that 78% of this round came so quickly from our existing shareholders - a full 75% of them reinvested, with the vast majority increasing their investment level. In my 20 years as an executive, it's absolutely rare to find a startup with such promise at such an early stage."
"With Anne's leadership, the Drip Drop team is driving terrific performance," said David Zezza, partner at Pacific Advantage Capital. "Drip Drop has already made significant progress in critical sales channels and brand awareness. A full year ahead of schedule, Drip Drop is better poised than ever to meet the pent-up demand for medical-grade hydration."
In the United States, where 75% of the population is chronically dehydrated, dehydration symptoms like fatigue and lack of focus account for $160 billion dollars lost to reduced productivity alone, according to narrow analysis by the CDC. Hospitalizations with dehydration as the primary diagnosis cost $5.5 billion every year. With admission costs rising above $16,000 for dehydration treatment (vs. $5 per use for Drip Drop), Drip Drop could lead to massive cost reductions.
Drip Drop's formula improves upon international standards for Oral Rehydration Therapy, a proven medical intervention that remains underutilized in the USA. Despite being described by Doctors Without Borders as "the most important medical advancement since penicillin," studies show that Americans are generally unaware of its benefits, relying instead on less effective sports drinks. Oral Rehydration is recommended as a frontline dehydration treatment by the Centers for Disease Control (CDC), American Medical Association (AMA), American Association of Pediatrics (AAP), the World Health Organization (WHO), and many others.
"I initially developed Drip Drop to meet the needs of my own patients," said Drip Drop founder Dr. Dolhun. "The broad adoption of Drip Drop nationwide has been both thrilling and humbling. I believe Drip Drop is the most advanced hydration you can get without a trip to the hospital, both in function and in taste - the latter of which has been a major barrier to the broad application of this crucial intervention. And what's so miraculous to me is that this formula that performs under extreme conditions is still safe and effective for moms, children, and seniors."
Drip Drop is currently available online and at select Walgreens pharmacies, hospitals, and premium resorts.
SOURCE Drip Drop Inc.