This is the first in a series of articles where we will be diving into how Cleavemoor invests. This piece focuses on our private investment in the health and wellness brand Puresport.
A standout brand
From our first contact with Puresport, almost three years ago, the brand has stood out. Puresport’s ethos is to support mental and physical wellness through natural products. Whilst this is an excellent goal, its Puresport’s connection with its consumers that has put it head and shoulders above the rest. It has a genuine and authentic voice which has resonated with consumers. Testament to this is the 100+ runners that turn-up for its weekly run club; running clubs and large brands could only dream of this traction with their audience.
A message we believe in
Founded by ex-professional athlete, Grayson Hart, Puresport noticed the modern world’s reliance on a quick-fix mentality, neglecting the power of natural products to support long-term health. Providing an alternative to this lifestyle, Puresport created the world’s most tested and trusted CBD, along with a range of nootropic and adaptogenic supplements to form a wellbeing ecosystem of expertly balanced natural products. Wellbeing is a journey, Puresport believe in small, sustainable steps which form life-long habits.
its Puresport's connection with its consumers that has put it head and shoulders above the rest.Ewan Mitchell Founder
Management are exceptional people
It’s connection with consumers confirmed our hypothesis that Puresport was a standout brand. A standout brand alone however, is not enough, it needs to be backed by a formidable and talented management team. In Grayson and Dan, Puresport has this in abundance. Throughout our investment process and as we have rolled up our sleeves post transaction, Grayson and Dan have impressed us with their straightforward communication and growth mindset. Two of the most important characteristics we look for in founders and management teams.
Strong financials
In our experience there are few companies, in consumer or further afield, that can grow at a CAGR of >140% over the last three years and maintain a segment leading gross margin. The stress this level of growth puts on a business is severe and yet the financials, stripping out the stress, continue to look strong.
Capital +
When we invest we look to add more than capital. We are consumer experts, our connections within consumer, founders through to bankers, are a part of how we add value. Opening doors and connections can transform a business and we are on that journey with Puresport. We look to bring the full weight of our portfolio investments to bear where we can, cross selling, from banking relationships to buyers at major retailers, is a part of that.
We think our investment in Puresport can clear +30% growth per annum over a ten year horizon.Ewan Mitchell Founder
On trend
Puresport is a business changing the health and wellness space. Grayson’s story is one that resonates loud and true with us. Health and wellness as a category is one that has been growing and is forecast to continue to grow mid single digits out to 2030. Beyond the attractive overall category growth we see the trend of consumers moving away from ‘pharma’ products towards more natural and authentic products as a major driver of this growth. Puresport’s expansion into mushrooms and nootropics is another leadership step within this category.
+30% pa over 10 years
All of this combines in our base forecasts and valuation scenario, we think our investment in Puresport can clear +30% growth per annum over a ten year horizon. We think there is significant upside to this if the brand and category plays out as we hope.
Our investment in Puresport is a great start, we have been hard at work over the last month, since our launch, communicating the unique Cleavemoor philosophy to founders. We have >10 companies in our pipeline which continues to grow day by day due to our industry connections and ethos. The potential for growth of these companies is phenomenal and we are working hard to make Cleavemoor10 the best partner for their story.