Alternative health market deck v4.25.2020 f

Alternative
Practitioner
Marketplace
Analysis:
For Bridge Builders Collaborative
By Michigan Ross MBA Students
By Gus Young, Payal Parikh, Robert Kasper, Rohan Kalra, Sonal Thawani, Sonja Manning & Zach Eddy
April 2020
1CONFIDENTIAL

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Introduction
The Michigan Ross MBA program promotes action-based learning experiences where students partner with
industry executives and entrepreneurs to learn about and test ideas. This project was championed by FitX, a
professional and innovation club focused on companies in the mental or physical fitness industry that are
changing how consumers access and manage their health and wellness.
The behavioral and mental health software market is growing significantly and partners at Bridge Builders
Collaborative are exploring how these trends will impact deeper shifts in humanity such as moving from
awareness to integration, from personal to social wellness, and from faster alone to better together.
A student-led Ross team worked directly with Operating Partner Charlie Hartwell to complete a market analysis
on key players, consumer needs, and opportunities within the alternative practitioner marketplace.

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Executive Summary
Challenge:
• The alternative practitioner space generates in excess of $18B annually in the US with over 226K practitioners. This marketplace is
growing yet is highly fragmented.
• Existing practitioners frequently lack the ability or know-how to market their business to new clients and would prefer to focus
their time on practicing instead of managing their business.
• Meanwhile, consumers--the prospective clients of these providers--have insufficient information about the types of treatments
that are available, their efficacy, and the credible practitioners in each field. Technology can help to bridge these gaps.
Opportunity:
• There is ample opportunity for a two-sided marketplace to bring consumers and practitioner together, creating value for both in
the process.
• An ideal product would: market practitioners to consumers; enable online booking and customer relationship management;
educate potential consumers of available evidence-based treatments; match consumers with various therapies in response to
their symptoms; identify trustworthy practitioners via reviews and endorsements, offer a seamless booking process; and benefit
from network effects.
Considerations:
• The marketplace should be created to mirror some of the traits of other successful two-sided e-commerce marketplaces.
Specifically, the pricing structure should be created to encourage continued participation on the platform and the on-boarding
process should be designed to create a switching cost for any practitioner considering a competitor.
• As the healthcare industry continues to evolve, this space faces the risks of additional regulation, consolidation, technological
innovation, and changes in healthcare/insurance policy.

CONFIDENTIAL
Rob Kasper
rkasper@umich.edu
Former engineer and future
consultant, interested in innovation
through the VC lens
The Team
Sonja Manning
sonjakm@umich.edu
Former consultant, motivated to
help start-ups in the positive living
industry grow and impact more
consumers
Zachery Eddy
zacherygeddy@gmail.com
Healthcare consultant, focused on
expanding access to evidence-based
care models
Gus Young
gusyoung@umich.edu
Former pro hockey player and future
consultant, interested in the intersection of
health + technology
Payal Parikh
prparikh@umich.edu
Former healthcare consultant,
passionate about advancing
innovation in health and wellness
Rohan Kalra
rkalra@umich.edu
Former IT professional and future
investment banker focusing on the
technology industry
Sonal Thawani
sonalt@umich.edu
Product Manager passionate
about tech + alternative care

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Table of Contents
INVESTMENT CRITERIA
CONSUMER & PRACTITIONER PAIN POINTS
CURRENT PLAYERS
RISKS & UNADDRESSED GAPS
INDUSTRY ANALYSIS
CONCLUSIONS

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ALTERNATIVE MEDICINE MODALITIES
• Increasing number of adults aged 20 to 64
• Per capita disposable income on the rise
• Increasing integration of complementary and alternative
medicine (CAM) services to allopathic services and
systems
• Scientific evidence and proof of efficacy increasing
• Insurance reimbursement for CAM services becoming
more frequent
MARKET GROWTH FACTORS
Alternative Medicine continues to see consistent growth in
the U.S. market
1
IBISWorld Industry Report, Alternative Healthcare Providers in the US, 2019.
2
2018 Global Wellness Economy Monitor. https:globalwellnessinstitute.org/industry-research/2018-global-wellness-economy-monitor/
• Acupuncture
• Herbal therapy
• Music therapy
• Hypnotherapy
• Yoga
• Energy healing
• Massage therapy
• Reiki healing
• Eye Movement Desensitization
and Reprocessing (EMDR)
• Naturopathy and homeopathy
• And many others!
226K
Providers1
$18B
2019
Revenue1
33%
of the U.S.
use
CAM2
KEY INDUSTRY STATISTICS

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Alternative health practitioners are increasing to meet the
consumer demand

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5 key elements characterize the current state of this highly
fragmented industry
• Compete on price and service differentiation
• Word of mouth is key to referrals
• Minimal marketing by practitioners leads to reliance on consumer loyalty
TECHNOLOGY
SCIENTIFIC EVIDENCE
SCALE
EXTERNAL COMPETITION
INTERNAL COMPETITION
• Home health agencies and hospitals are top competitors
• Lack of partnerships between allopathic and alternative practitioners
• Pharmaceutical industry lobbying against alternative treatments
• Size is not a significant advantage, allowing practitioners to operate
independently
• Independent practitioners leads to high fragmentation in the market
• Lack of awareness of highly trained and medically certified organizations
(e.g. Consciousness and Healing Institute)
• Social stigma surrounding alternative health medicine can be negative
• Low penetration of high-tech systems
• Practitioners have been attempting to integrate more technology into
their practices (e.g. patient management systems)

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Primary Care Physicians
are “gatekeepers” and if
alternative methods are
not prescribed by a PCP,
consumers are largely
on their own to
navigate alternative
care.
Consumers rely heavily
on word-of-mouth,
internet searches,
and doctor referrals.
Fragmentation of the
industry leaves finding
the right practitioner
difficult and time-
consuming.
Social stigma, minimal
online community,
and limited access to
evidence-based
research make it
difficult for consumers
to trust alternative
health practitioners.
Booking methods
are inconsistent and
cumbersome across
practitioners so
consumers must
actively seek ways to
contact a practitioner.
Learning about
Options
Accessing a
Practitioner
Trusting a
Practitioner
Booking an
Appointment
The consumer journey reveals major friction points...
Education
Continuing
Engagement
Consumers currently
do not have a way to
track progress or
interact with
providers post-visit.
Less touch-points with
practitioner increases
risk of losing
consumer.
Accessibility Trust Booking Experience Engagement
Friction Point

…and friction points create opportunity for value creation
Consumer Pain Points Value Proposition Similar Models
Education Educational content
Matching algorithm
Accessibility
Searchable platform
Scalable platform
Trust
Practitioner vetting
Consumer reviews
Consumer success stories
Booking experience
Scheduling & booking capability
Online payments
Insurance integration
Engagement
User interactions
Group treatment
Progress tracking
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Given lack of education on
and access to alternative
practitioners, consumer
acquisition can be slow
and unpredictable, and
marketing may not be
financially viable.
Practitioners also face several friction points when attracting
and retaining consumers
Finding Patients Booking Patients Payment Client Retention
Independent practitioners
are responsible for both
scheduling appointments
and treating consumers.
With outdated software
and limited resources, this
is inefficient and expensive.
Payment relies heavily on
cash in the alternative
practitioner space.
Further, practitioners
currently deal with outdated
POS systems.
Client retention relies on
email lists, postcards, and
phone calls. Clients want
to be able to track progress
and receive consistent
support.
Customer Acquisition Practice Operations Practice Operations Customer Retention
Friction Point

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…and a digital marketplace could simplify practice
management
Practitioner Pain Points Value Proposition
Practice Operations
Scheduling & booking platform
Online payments
Financial management
Customer Acquisition
Searchable platform
SEO optimization
Marketing expertise
Similar Models
Customer Retention
Branded content
Curated email List
Push notifications
Progress tracking

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Educate Consumers
Educate consumers on
evidence-based treatments and
use algorithms to match clients
to treatments
A successful digital marketplace will incorporate six key
investment criteria
Practice Management
Simplify scheduling, booking,
and payment while enhancing
marketing capabilities and
freeing up practitioners for
client work
Increase User Engagement
Create forum for branded
content and a medium for user
interactions to create loyalty
and a community of support
Track Consumer Outcomes
Incorporate impact tracking to
measure consumer success and
increase client-practitioner
communication
Practitioner Needs Fulfilled Consumer Needs Fulfilled
Create Trust
Increase consumer trust with
consumer reviews and ratings,
and a thorough practitioner
vetting process
Alternative
Practitioner
Marketplace
Core
Elements
Increase Accessibility
Increase customer acquisition
with searchable platform and
improve practice visibility and
credibility
Blended Needs Fulfilled

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We have identified 11 key digital marketplace features
that can satisfy investment criteria
Needs FulfilledMarketplace Features
1. Ratings System Trust
2. Practitioner Vetting Trust
3. Educational Content Education
4. Matching Algorithm Education
5. Progress Tracking User Engagement, Tracking Outcomes
6. Client – Practitioner Communication User Engagement, Trust, Tracking Outcomes
7. Appointment Scheduling Accessibility, Practice Management
8. Payment System Accessibility, Practice Management
9. Search Method Accessibility
10. Lead Generation Practice Management, Accessibility
11. Client Management Software Practice Management

Start-ups are beginning to enter the space
United States International
Find & book wellness practitioners. Search
thousands of science-backed, trusted practitioners,
trained to help you with your specific health
concerns. Launched in Los Angeles March 2020, with
practitioners around the country now.
Get health answers & find wellness practitioners
across the US. Connect with Acupuncturists,
Chiropractors, Massage Therapists, Naturopathic
Doctors & more. Launched 2016.
Kensho is a modern guide to holistic health that
makes it easy to find what you need, whether that's
a trusted answer or an expert provider. Launched
January 2020.
Domestic and international companies are beginning to
enter the space
The Oneness Movement aims to educate
potential customers of wellbeing and
connect them with practitioners (No
details on size and revenue model).
Soon to be launched fitness platform based
out of Luxembourg allows users to explore,
find, and book wellness services in the
greater Luxembourg region. Welly has an
integrated matchmaking algorithm to help
connect customers to the services they need.
CONFIDENTIAL

Current U.S. Players Overview
Major Markets
National (especially
focused on LA, NYC, SF)
National (especially focused on LA,
NYC)
National (39 major cities)
Founded 2018 2017 2014
Launch Spring 2020 January 2020 2016
Funding Status2 Angel (Kleiner Perkins and
Kelly Noonan); N/A
Seed; $1.3M Seed; $1.2M
Active Practitioners 7K+ 1K 6K+
Pricing Model1 Booking fees, Subscription,
Referral Fees
Saas, Booking fees Saas
Revenue N/A ~$600k ~ $1M
Instagram Followers 13.9K 10.2K 1,971
Management Team Evaluation3
Startup Experience
Education/Skills
Wellness Ties
Source: (1) Company pitch decks, (2) PitchBook and TechCrunch (3) LinkedIn
DesirableNot desirable
Overview of major U.S. players
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Evaluation of U.S. start-ups against key investment criteria
Increase Accessibility
Lower barriers to care with searchable
platform and frictionless booking and
payment
Create Trust
Increase trust with consumer reviews
and ratings, and a thorough practitioner
vetting process
Simplify Practice Management
Simplify practice management while
enhancing marketing exposure
Track Consumer Outcomes
Incorporate impact tracking to measure
consumer success and increase
credibility
Increase User Engagement
Create forum for branded content and a
medium for user interactions to create
loyalty and a community of support
Educate Consumers
Educate consumers on the most recent
evidence-based treatments and match
their needs to solutions
Needs Fulfilled
Key:
Thoroughly
addressed
Partially
addressed
Does not
address

Backup: Deep dive on platform offerings
1. Ratings System Trust Yes Yes Yes
2. Search Method Accessibility
Practitioner, Conditions,
Specialties
Practitioner, Specialties, Articles
Practitioner, Condition,
Specialties, Articles
3. Educational Content Education Virtual Education Studio
Blogs, Articles, Live and On-Demand
Classes
Blogs, Wellness A-Z
4. Matching Algorithm Education No Quiz Algorithm
5. Progress Tracking
User Engagement, Tracking
Outcomes
No No Planned
6. Client – Practitioner
Communication
Accessibility, Practice
Management
Yes Planned Consultation Only
7. Appointment Scheduling
Accessibility, Practice
Management
Yes No Yes
8. Payment System
User Engagement, Trust,
Tracking Outcomes
Yes, via Stripe Yes Yes
9. Practitioner Vetting Trust Yes
All practitioners verified
Some background checked
None
10. Lead Generation
Practice Management,
Accessibility
Yes Yes Yes
11. Client Management
Software
Practice Management Yes No Yes
Needs FulfilledMarketplace Feature
Backup: deep dive on evaluation of U.S. start-ups against
key marketplace features

CONFIDENTIAL
Current marketplace solutions have unaddressed gaps that
can be considered as opportunities
CONSUMER EDUCATION CONSUMER OUTCOMES
NORMALIZE
ALTERNATIVE MEDICINE
● Limited educational resources
are available for new consumers
seeking to understand the
alternative medicine landscape
● Current demand-matching
algorithms provide consumers
with excessive choice
● Misinformation could be
detrimental to market growth
● There is no standardized method
for tracking the efficacy or safety
of alternative therapies or
practitioners
● Alternative practitioners rely on
consumer testimonials to
establish credibility
● Need to identify what alternative
therapies are most effective for
treating specific conditions
● Lack of partnerships with
credible alternative medicine
organizations and traditional
healthcare stakeholders (e.g.
payers, employers)
● Scientific evidence produced by
organizations such as
Consciousness and Healing
Initiative (CHI) needs to be
broadly socialized to reach new
consumer markets
Current
Offerings
Future State
Marketplace

CONFIDENTIAL
An alternative health marketplace is not without risk
Breakthrough
Therapies
• Newly developed
drugs or medical
interventions
could obviate the
need for some
alternative
medicine
therapies.
Practitioner
Consolidation
• Hospital and
physician group
consolidation has
had a significant
impact on
healthcare.
• Alternative practice
consolidation could
similarly alter
current market
dynamics.
External
Competition
• Hospitals are shifting
to patient-centered
care, and integrative
medicine is being
adopted by top
centers.
• Pharmaceutical
companies using
market power to
block advances in
alternative medicine.
• Companies with
established
distribution channels
may also pivot to
alternative medicine.
Increased
Regulation
• Increased adoption
may lead to stricter
regulation.
• Example: the FDA
recently cracked
down on stem cell
clinics that market
unproven and
potentially
dangerous
treatments.
Consumer
Spending
Changes
• Increasing financial
constraints on
consumers could
limit their
willingness to pay
for elective
treatments.
• Patients may
ultimately defer
healthcare in order
to save money.
Healthcare
Policy Changes
• Democratic
presidential
candidates want to
expand healthcare
coverage to more
Americans by
implementing a
single-payer system.
• Policy changes could
impact how patients
seek treatment and
which services are
reimbursed by
traditional
healthcare payers.
The role of healthcare and insurance companies adopting alternative practices, based on lobbying from major companies or
consumers, would make a significant impact on this marketplace.

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Table of Contents
INVESTMENT CRITERIA
CONSUMER & PRACTITIONER PAIN POINTS
CURRENT PLAYERS
RISKS & UNADDRESSED GAPS
INDUSTRY ANALYSIS
CONCLUSION

CONFIDENTIAL
Conclusion
Our analysis of the alternative practitioner marketplace resulted in the following takeaways:
• The demand for alternative practices and practitioners is growing, yet the two-sided marketplace is still
fragmented. Technology, especially if embraced by practitioners, will be the key to value creation.
• Platforms within this two-sided marketplace must fufill diverse consumer and practitioner needs. Platforms cannot
rely on consumer’s awareness and trust of alternative medicine; rather platforms must lead the education and build
trust of consumers.
• We are entering a new age of services marketplaces; and the alternative practitioner marketplace is ripe for
disruption. Digital technology, as well as Automation and AI, can convene practitioners and consumers in a way that
has never been done before.
• Most consumers require education prior to adopting alternative practices, and consumers also trust and
continued engagement with their practitioner and community.
• Most practitioners must build trust to acquire and retain consumers, and a key aspect of that is improving
practice operations to free-up time for practitioners to focus on clients and enhance the consumer
experience
Who will best take advantage of opportunities to create value in this marketplace?
Investors, entrepreneurs, practitioners, and consumers should closely follow the evolution of this marketplace.

APPENDIX
• Master company data set
• U.S. start-ups financing & business models
• Analysis methodology
• Sources
28

CONFIDENTIAL
Appendix: Company Data Set
Company HQ CEO Founded
Total Funding
(M)
Last Round Date Last Round Type Company Stage
Wellset LA Tegan Bukowski 2018 undisclosed 7/30/2019 Seed
Limited Launch, Pre-
Revenue
Kensho LA Krista Berlincourt 2013 1.3 9/11/2019 Pre-seed Revenue
DaoCloud SF Max Coleman 2014 1.2 9/1/2019 Pre-seed Revenue
Wellness Official LA Millana Snow 2017 undisclosed N/A Pre-Seed Pre-Revenue (Beta)
Begin to Heal NY Pooja Khanna 2017 undisclosed N/A Pre-Seed Pre-Revenue (Beta)
The OneNess
Movement
London Joanna Harris 2018 - - - Pre-revenue
Holisticism LA Michelle Pellizzon 2017 undisclosed N/A Pre-Seed Pre-Revenue
Welly EU Agnella Serafin 2019 undisclosed N/A Pre-seed Pre-Revenue
Grit Well SF Chelsea Rowe 2018 0.06 9/22/2019 Incubator Incubator
ClassPass /
MindBody
NY Fritz Lanman 2013 549 1/8/2020 Late-Stage Revenue

Backup: Deep dive on platform offerings
Financing Raised Undisclosed 1.3M 1.2M
Revenue Model Booking Fees 3%
New Client Referral Fee 30%
Client Management Features
range from 0-150$/month
for premium client features
Providers pay $100 Verification +
$200/year
Booking coming in 2020
Currently charges practitioners
$340/year
Booking coming in 2020
Verification of Providers Yes, all via Checkr and some
additional verification to
become WellSet Select
All verified and interviewed None are verified
Customer Focus Consumers, Practitioners Consumers, Practitioners Practitioners
Matching Quiz N/A Beta Yes
Features Implemented Search & Filter,
WellSetCircles (word of
mouth referrals online),
Booking System
Search, Verified Practitioners,
Educational Articles
SaaS, Educational Articles
Upcoming Features TBD Hyper-Curation, Direct Booking, Social
Network
Direct Booking
2020 Revenue Estimate Undisclosed $1 million $2.38 million
5 year Revenue Estimate Undisclosed $15 million $150 million
Appendix: Evaluation of U.S. start-ups financing and core
business model
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Appendix: Methodology
Stakeholder
Interviews
(including
entrepreneurs,
investors,
practitioners,
consumers)
Industry Research
via online sources
University of
Michigan Zell Lurie
Institute: Advice
and Reviews from
Entrepreneurs in
Residence
To complete this analysis, our team utilized the following three methods:

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Appendix: Main Sources
Bukowski, T. (February 2020). Phone meeting with Bukowski.
Connor, M. (January 2020). Phone meeting with Conner.
Jain, S. (February 2020). Phone meeting with Jain.
CrunchBase. February 2020. Retrieved from www.crunchbase.com
Dao Cloud. April 2020. Retrieved from www.daocloud.com
IBISWorld Industry Report, Alternative Healthcare Providers in the US, 2019.
Global Wellness Economy Monitor - 2018. February 2020. Retrieved from https:globalwellnessinstitute.org/industry-research/2018-global-
wellness-economy-monitor
Kensho Health. April 2020. Retrieved from www.kenshohealth.com
Pitchbook. April 2020. Retrieved from www.pitchbook.com
The Oneness Movement. February 2020. Retrieved from www.mytom.io
WellSet. April 2020. Retrieved from www.wellset.co
Welly. February 2020. Retrieved fromwelly.lu
Note: This is not an exhaustive list of sources referenced to inform the analysis.

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