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Why did you launch HumanCo Acquisition Corp?
At a time when people are sicker than ever and looking for solutions, we believe there is a need and opportunity for more publicly traded, high-growth consumer companies focused on advancing healthier living.
Why did Jason Karp decide to focus his career on the health & wellness space?

Jason’s focus on health and wellness has deeply personal roots. In his early twenties, he became very ill with several autoimmune diseases and was told by doctors that, while there was no cure, he should consume countless medications to mitigate his symptoms. He was also diagnosed with an incurable, degenerative eye disease and told he would be blind by the age of 30.

After countless hours of research, self-experimentation and a steadfast refusal to accept these diagnoses, Jason discovered his diseases were primarily linked to what he was putting both in and on his body. After Jason dramatically improved his nutrition and lifestyle by focusing on whole, unprocessed foods and eliminating chemical additives found in most consumer products, his ailments reversed over time, including his supposedly incurable eye disease.

Inspired by the transformative power of real, whole ingredients, Jason and his family set out to prove the possibilities of unadulterated, sustainable food without compromising on taste by creating Hu Kitchen and HumanCo LLC. Witnessing the dearth of trustworthy and healthy options for consumers combined with the success of his health & wellness companies and investments, Jason reevaluated his life and decided to concentrate all of his time on health and wellness.

Why did HumanCo and CAVU decide to partner?
HumanCo and CAVU have related goals as two mission-driven companies that invest in and build brands focused on healthier living and sustainability and the principals have personally known each other for a very long time. They each bring important experience to our team: Jason and Ross each have more than twenty years of investment experience and have run successful investment management companies, often focusing on the consumer sector and acquisitive platform companies. Amy has extensive legal and operational experience including managing human resources, legal, technology, marketing, and investor relations. On the CAVU side, Rohan has over twenty years of experience in the consumer space, first as a brand builder and marketer, followed by over a decade of successful investment experience. He co-founded CAVU Venture Partners in 2015 alongside Brett, which has quickly become one of the fastest-growing venture funds in the CPG space, successfully posting eight exits in under five years. We believe that the combination of Jason, Ross, Amy, Rohan, Brett and the broader team is a key differentiator for the identification and execution of a potential initial business combination target.
Do you have a focus area?
Our primary investment universe is within consumer and technology markets, including food & beverage, household products & personal care, beauty & wellness, fitness, and nutrition.
Why do you believe there is a market opportunity in the health and wellness space?

There is a massive cultural awakening within health, wellness and sustainability.  Despite medical advances, Americans are sicker now than ever before. Today, Americans are spending record amounts on healthcare and exercising more than ever, yet the rates of obesity and chronic disease are at all-time highs. Currently, over 70% of Americans are obese or overweight, according to a 2018 report by the U.S. Centers for Disease Control and Prevention. Beginning in 2014, the U.S. Centers for Disease Control and Prevention publicly declared obesity a chronic disease and a national epidemic. Obesity is linked to more than 60 chronic diseases, and 90% of the $3.3 trillion in annual health care expenditures in the U.S. are for people with chronic disease. Poor diet and lifestyle are the leading causes of chronic disease and death, and much of this is fixable through better food, product and lifestyle choices.

We believe that there is a generational opportunity driven from four key areas. First, large legacy public companies are not creating enough healthy options and evolving fast enough due to existing business attachment. Second, there is continued focus on health & wellness among Millennials and Gen-Z populations, as well as Baby Boomers who want to age well. In addition, we believe that the U.S. healthcare system is in an unsustainable crisis, with our population sicker than ever before as mentioned above. Finally, the added presence of social media and technology amplifies transparency and pride in wellness and sustainability. We believe that this dynamic provides a wealth of opportunities for emerging, authentic companies that offer consumers options to live a better and healthier lifestyle. We have first-hand experience with these types of companies as investors and operators and believe that they provide a compelling investment opportunity.
 

How large is the market opportunity?
We believe there is a massive opportunity within the health & wellness industry. According to the Global Wellness Economy Monitor October 2018 report, it is a $4.5 trillion market that is comprised of large and growing categories including the following: personal care, beauty, & anti-aging ($1.08 trillion); physical activity ($828 billion); healthy eating, nutrition & weight loss ($702 billion); wellness tourism ($639 billion); preventative & personalized medicine & public health ($575 billion); traditional & complementary medicine ($360 billion); wellness real estate ($134 billion); spa economy ($119 billion); thermal / mineral springs ($56 billion); and workplace wellness ($48 billion).
What is your competitive advantage?

We believe that our management team and directors will offer distinctive competitive advantages to our stockholders in the pursuit of a target opportunity. Our competitive strengths include the following:

  • Sophisticated Investment Team. Jason and Ross each have more than twenty years of investment experience and have run successful investment management companies, often focusing on the consumer sector and acquisitive platform companies. Amy has extensive legal and operational experience including managing human resources, legal, technology, marketing, and investor relations.  On the CAVU side, Rohan has over twenty years of experience in the consumer space, first as a brand builder and marketer, followed by over a decade of successful investment experience. He co-founded CAVU Venture Partners in 2015 alongside Brett, which has quickly become one of the fastest-growing venture funds in the CPG space, successfully posting eight exits in under five years. We believe that the combination of Jason, Ross, Amy, Rohan, Brett and the broader team is a key differentiator for the identification and execution of a potential initial business combination target.

  • Experienced Health & Wellness Operators and Leaders. We have experience investing in and building brands, historically taking both controlling or minority interests in private, mission-driven companies. Our leadership team has proven success as first-hand operators of health & wellness companies. We believe that prospective companies will benefit from the guidance and insight that our management team can provide through mentorship, governance and operational involvement and experience.

  • Progressive Acquisition Vehicle with Significant Resources. HumanCo Acquisition Corp. stands out as a truly mission-driven SPAC within health, wellness and sustainability and is powered by investment, operational and brand building experience.  We believe that we can add significant value to a newly public company through our extensive industry knowledge, marketing and financial expertise, as well as our network of strategic investors and resources.

  • Science-Driven Approach. We leverage evidence-based, scientific research from world-renowned, published scientists to inform our criteria for identifying, monitoring, and optimizing health and sustainability focused businesses and their impact on society at large. We believe that this approach will allow us to effect a value-enhancing acquisition.

  • Qualified Board. Our board of directors brings significant investment, operating experience and relationships within the broad health & wellness universe. The board of directors will provide the expertise and insights to help identify target companies.

  • Uniquely Advantaged SPAC Vehicle. Our culture, focus and resources make us an ideal business combination partner. Our investment will be driven by both financial returns and improving global health and sustainability, which will allow us to share best practices with like-minded entrepreneurs and management teams to grow a mission-driven business.
What are you looking for in a target company?

Consistent with our business strategy, we have identified the following general criteria and guidelines that we believe are important in evaluating prospective target businesses. We intend to seek to acquire companies that fit the following criteria:

  • Strong management team with founder-led culture;

  • High quality, differentiated products with mission-driven, health-forward approach;

  • Signs of market penetration with strong demonstrated performance in existing markets;

  • Good unit economics with strong quality of revenue and velocities;

  • Attractive, high-growth category with durable tailwinds; and

  • Path to become or already are an industry leader.

These criteria are not intended to be exhaustive. Any evaluation relating to the merits of a particular initial business combination may be based, to the extent relevant, on these general guidelines as well as other considerations, factors and criteria that from time to time our management team may deem relevant.

How will you generate shareholder value?

HumanCo Acquisition Corp. has a differentiated ability to generate value for shareholders. 

  • Target identification and selection:
     
    • Actionable, proprietary deal flow based on highly successful track record and decades of industry relationships

    • Track record and value-add capabilities create preferred partner status with founders and CEOs

    • Frequent touch points and strong industry relationships across all verticals

    • Selection process that leverages our experience providing robust 360® value-add capabilities from operations to consumer-facing brand building

    • History of successful entry points in private acquisitions and in public equities  

    • Extensive knowledge of public and private markets

    • Deep understanding of risks and shifting trends in health & wellness
  • Partnering with target company
     
    • Unparalleled in-house value-add capabilities and resources

    • Understanding the levers that drive stock performance, premium valuations and lower cost of capital

    • Deep industry network, from retail relationships to national media partners, built over decades

    • Established CPG platform ecosystem and preferential treatment and discounted rates with service providers

    • Ability to elevate companies through branding, marketing and revenue growth

    • History of top talent recruitment and development