Here’s How Magic Raised $10mm In Seed Funding For Healthcare Startup Fruit Street.
Fruit Street is the first digital health and telemedicine company to deliver the CDC’s National Diabetes Prevention Program and license their software to healthcare professionals who want to set up a virtual practice.
Participants sign up for the program with the goal of losing 5-7% of their weight to reduce their risk for Type 2 diabetes. Each week, customers video conference with a registered dietitian, take pictures of their food in the Fruit Street mobile application, use a Fitbit to track physical activity as well as a wireless scale to track weight loss progress.
Why Fruit Street Uses Magic
Laurence Girard, Fruit Street CEO, starting using Magic as a personal assistant. He delegated a variety of one-off tasks to Magic before asking if Magic would be a fit for his business needs. He needed help with fundraising for Fruit Street and recruiting doctors onto his platform.
Laurence hopped on a call with his account manager and was surprised to discover how flexible Magic would be at building and following through with any custom process. He wanted to Magic sure Magic would learn a complicated flow chart, such as a sales funnel, and follow it correctly.
Laurence was happy to discover that Magic would build out the process with him and train their team specifically on how to execute it.
“Some tasks shouldn’t be handled by me. If Magic can do something, and Magic’s price is lower than my hourly rate, I’ll always send it to Magic.”
—Laurence Girard, Fruit Street CEO
Fruit Street was able to “hire” Magic, with all the responsibilities of a full time employee, while keeping the flexible pricing of an app.
Magic gives startups like Fruit Street the best of both worlds. Startups want flexible pricing, allowing them to scale up and down instantly, while at the same time they need to delegate complex work with multiple steps that gets iterated on the fly. Magic learns and gets better over time, even while being “pay as you go.”
Magic Completely Automated Fruit Street’s Fundraising
To get initial seed funding, Fruit Street needed to reach out to investors interested in the telemedicine and healthcare industry.
First, thousands of leads needed to be collected from a wide variety of accredited investors and funds. Second, each lead needed to be added to Linkedin and Salesforce. If an email address or phone number was missing from the lead, a specialized message needed to be sent asking for that information.
After collecting all of the information, an investor package needed to be sent alongside a Calendly link to schedule a phone call. At each point in the funnel, a lead could drop off and go unresponsive. If this happens, a follow up sequence needed to kick into gear. In addition, whenever any update happened with any lead, this information needed to be updated into Salesforce.
Laurence Girard, CEO of Fruit Street, worked with Magic to build this flowchart. Magic then executed it automatically. At any point, Laurence could message Magic to tweak any aspect of the flowchart and adjust his sales process.
For example, here’s what Magic and Fruit Street developed together as a flowchart for follow ups. Magic kept track of this for every single lead, 24/7.
Fruit Street Saved Over $110,000 Using Magic
When needed, Fruit Street used over 100 hours of Magic a week to accomplish the needs of more than 2 full time employees. Some weeks, less work was needed, and Fruit Street ramped down its usage. Because Magic is not a fixed cost, Fruit Street saved thousands of dollars over hiring a full time employee, who would sit around during that period.
Magic also saved Fruit Street money by including all of these extra costs already for its team members in its single hourly rate:
- HR costs
- Office space
- Subscriptions to remote work apps like LastPass, Slack, and G Suite
If Fruit Street would have hired 3 employees instead of using Magic, he would have spent an additional $110,000+. For an entire year, with the ability to do the work of 3 employees, Magic was less than the cost of a single full time sales assistant. This is because Magic only works when you need it to work, and you don’t pay for any of the additional costs of an employee, such as hiring and training costs.
Magic Is Now Helping Launch CovidMD
Magic was so successful fundraising and scaling Fruit Street that “dozens of companies” have asked Fruit Street to teach them their strategy and do something similar at their company.
In addition, the CEO of Fruit Street is using Magic again to help grow CovidMD, a new telemedicine company to help those who believe they are infected with Covid-19.