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VC NEWS DAILY: So what makes "Naughty Bits"
so naughty?
NAUGHTY BITS: Well, when I started teaching nutrition
classes, I became known as the "Not-Eat Nutritionist,"
because half of what I was telling people was what not
to eat... and when you say that fast, it becomes the
"Naughty Nutritionist."
I used that when I started building out the company
as something that would appeal, especially, to young
people - partly because young people want something
new and fun, and partly because I wanted to prevent
the younger generation from having the same health problems
baby boomers do.
VC NEWS DAILY: But your background isn't in nutrition.
NAUGHTY BITS: Oh, no. I've worked as a marketer and
an entrepreneur - this is my fourth startup. I've started
three other Internet-based companies. I have an MBA,
I've done marketing for 25 years. I've launched about
300 companies or brands, because I used to work for
the Canadian government as an attaché, and I
would write companies' business plans to launch in the
U.S. market.
VC NEWS DAILY: Why the foray into nutrition?
NAUGHTY BITS: Four years ago, my sister was diagnosed
with breast cancer, and along with her treatment, her
oncologist told her she should eat an alkaline diet.
She asked me what I should do with that, and I didn't
know, but I'm a very good researcher, so I looked it
up. Basically, it's a diet based on a lot of green vegetables
and salads and green tea. [My sister] switched to that,
and went on with treatment, and completely healed. And
four years later she's still cancer-free.
So, I started researching this more... and I found
that 97 percent of the health problems and chronic illnesses
of Americans arise from their diet. That's not a number
I pulled out of the air. That's from the Center for
Disease Control.
I wanted to find one thing that people could add to
their diets that would lead to a healthy lifestyle.
I spent about eight months looking, and nothing was
working until I found the algae. There's nothing with
as much protein as algae... it's almost a joke that
nature has given us. There's this miracle food that
has been around for 2.5 billion years, that could solve
every health problem in modern society... but nobody's
paying attention to it. Except we are.
VC NEWS DAILY: Algae doesn't seem like the most obvious
food source.
NAUGHTY BITS: Well, it's funny. The Germans discovered
it as a protein source during World War I. The first
[industrial] plant to grow algae outside of Germany
was right here in Cambridge. That was the beginning
of the algae story, because Americans introduced the
Japanese to it, and they discovered how fabulous it
is. So, they threw billions into researching it, and
now it's a multibillion dollar industry over there.
And we're this company in Cambridge working off my dining
room table. But it's got such potential.
VC NEWS DAILY: You said you want to appeal to younger
people. How will you do that?
NAUGHTY BITS: I discovered the "Gen X" market
is twice as big as the baby boomer market. But in the
supplements market, nobody's catering to younger people.
Nobody makes it fun. And so our messaging doesn't really
focus on a lot of the rich nutritional information.
I focus on benefits that are going to be fun and interesting
to younger people - like get a better workout, or don't
get a hangover.
VC NEWS DAILY: Have you sought venture funding? Is
there any interest in NaughtyBits?
NAUGHTY BITS: I was a semifinalist in MassChallenge
last year, I was a semifinalist in PepsiCo Highland,
and was a finalist in another competition. I had some
conversations with VCs last year, but nobody could really
see the vision I had for the company. I decided I could
either knock on VC doors and try to get money that way,
or I could hunker down and build my company. You can
do one or the other. In the Boston entrepreneurial community,
a lot of people look for the venture capital. I chose
to build my company.
Right now, we do not want venture capital. I'm not
sure we could find a VC who would support our vision
for the company. We are looking for an angel investor.
Our ideal investor is some high net-worth individual
who has a background in the athletic community, because
athletes get this, completely. Someone who could write
a check for $100,000, $250,000. We wouldn't take more
than $500,000. And after that, with the sales we expect,
we might not need any more money.
VC NEWS DAILY: What do you think the potential market
is for NaughtyBits?
NAUGHTY BITS: We want to be as big as Red Bull. I see
us being actually the size of Red Bull - which is a
$4 billion company. We want to do the exact same thing
they did - take a product that is successful in Asia,
and rebrand it, and sell it here. They created a new
category called "energy drinks." Ten years
ago, the market here was half a billion dollars. Now
it's $10 billion - and Red Bull still controls 42 percent
of it.
The problem is, those energy drinks are full of caffeine
and chemicals. And protein bars - those are a $4 billion
industry, but those are just as bad, because they're
filled with soy, which is unhealthy. Some of them have
over 90 ingredients... and they're all chemicals. They're
very smart - they put the foil flap over the nutritional
information.
I'm just determined that one way or another, we're
going to reach people, and we're going to have fun.
And you're going to start taking this stuff. And it'll
change your life.
- Reporting by Dennis Mayer
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