1. Fundraising & Investors
Investment Opportunity
Local LifeCare is raising a $1.6M Seed Round to accelerate adoption of our Life Care Platform — delivering scalable daily execution support through AI-powered automation, medication adherence, coordination assistance, and life-management support to millions through zero-CAC distribution channels.
This round provides an 18-month runway to reach our next major valuation inflection point: scaling from 150,000 to 2 million lives through Employer Group and DPC partnerships while launching our premium tier.
The Problem: The Universal Execution Gap
People know what they should do for their health and life, but they don't follow through:
- 50% of medications are not taken as prescribed
- 40% of doctor's recommendations are never followed
- 70% of care plans fail in daily execution
- $500B in avoidable costs from poor adherence and coordination
These breakdowns — small in isolation — drive enormous downstream costs: avoidable ER visits, disease progression, family burden, and billions in wasted healthcare spending.
Most health breakdowns don't happen in exam rooms — they happen in the chaos of everyday life.
Our Solution: Life Care Platform That Closes the Execution Gap
A messaging- and AI voice-based platform that ensures essential health tasks actually get done:
Automated Daily Support Through AI
- Medication adherence reminders via RCS/SMS and AI voice
- Appointment and task coordination
- Refill management and pharmacy sync
- Family communication and updates
Human Follow-Through When Needed
- AI handles 90-95% of routine interactions
- Human coordinators step in for escalations (1:2,500 ratio)
- Proactive outreach for at-risk members
Zero-Friction Deployment
- No apps to download
- Works on any phone (smartphone or landline)
- No clinical integration required
- Deploy to thousands of lives in days, not months
We don't diagnose or treat — we ensure the basics actually happen.
Business Model: Three-Tier Revenue Structure
1. Employer Group Distribution (Base Layer)
- Pricing: $0.65 PEPM
- Target: 5 million lives by Year 5
- Near-zero CAC: Partners own the employer relationships
2. DPC Distribution (Engagement Layer)
- Pricing: $0.65-$1.00 PMPM
- Target: 1 million lives by Year 5
- Value: Improved adherence and care plan follow-through
3. Premium Tier (Revenue Multiplier)
- Pricing: $165/month
- Target: 1% conversion (60,000 members by Year 5)
- Enhanced Support: Daily check-ins, expanded coordination, priority access
Unit Economics
- Effective CAC per member: ≈$0 (one-to-many distribution via employers/DPCs)
- Gross Margin: ~90% (automation-first model)
- Support Ratio: 1:2,500+ through AI automation
- LTV/CAC: Infinite at base tier, 20x+ at premium
Traction & Proof Points
- 200,000 lives in active pipeline discussions with Employer Groups
- 4 DPC clinics expressing interest (20,000 lives)
- 90%+ medication adherence in pilot programs
- 95% automation rate for routine interactions
- Zero clinical staff required — non-clinical model validated
Our model is proving what the market desperately needs: consistent daily follow-through at population scale with software economics.
Five-Year Financial Projections
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Employer Group Lives | 100,000 | 500,000 | 1,500,000 | 3,000,000 | 5,000,000 |
| DPC Lives | 50,000 | 150,000 | 300,000 | 600,000 | 1,000,000 |
| Total Lives | 150,000 | 650,000 | 1,800,000 | 3,600,000 | 6,000,000 |
| Premium Members | 0 | 1,625 | 9,000 | 27,000 | 60,000 |
| Total ARR | $1.2M | $8.3M | $31.9M | $81.5M | $165.6M |
| Gross Margin | 87% | 90% | 90% | 90% | 90% |
| EBITDA Margin | ~10% | 41% | 54% | 66% | 72% |
Conservative Assumptions:
- Only 1% premium conversion (industry benchmarks suggest 2-5%)
- No price increases over 5 years
- Linear growth rather than exponential network effects
Use of Funds — $1.6M Seed Round
| Category | Allocation | Purpose |
|---|---|---|
| Product & Engineering | $520,000 (32.5%) | AI voice platform, automation workflows, messaging infrastructure, partner APIs |
| Growth & Commercial | $400,000 (25%) | Employer Group/DPC partnerships, enterprise sales, channel development |
| Operations & Support | $520,000 (32.5%) | Salaries/wages for care coordinators, operations team, and support staff |
| Compliance & Legal | $120,000 (7.5%) | HIPAA alignment, SOC 2, partner contracts, regulatory review |
| Working Capital | $40,000 (2.5%) | Operational flexibility and vendor management |
Total = $1.6M providing ~18-month runway, with cash-flow breakeven around Month 15
Key Milestones (18 Months)
Lives Under Management Growth Path: 150k → 650k → 1.8M → 3.6M → 6.0M
Month 6
- 75,000 lives under management (50% of Year 1 target)
- 1-2 Employer Groups, 10-20 DPC clinics
- Premium tier launched and tested
- Full AI + messaging automation platform deployed
Month 12 (End of Year 1)
- 150,000 lives under management (Year 1 target achieved)
- 2-3 Employer Group partnerships, 20-40 DPC clinics
- 750 premium members (0.5% conversion)
- $1.2M ARR run rate
Month 18 (Mid-Year 2)
- 400,000 lives under management (on track to 650k by Year 2 end)
- 4-5 Employer Group partnerships, 50-60 DPC clinics
- 2,000 premium members (0.5% conversion)
- $5M ARR run rate (on track to $8.3M by Year 2 end)
- Cash flow positive trajectory
- Series A ready
Team
Kenneth Lyman — CEO & Chair (65%)
Healthcare entrepreneur, U.S. Navy veteran. Built multi-state home care organizations and founded Local HomeHemo, scaling healthcare operations across the Pacific Northwest.
Mia Padilla — Chief Growth Officer & Secretary (25%)
Leads commercial strategy, Employer Group/DPC partnerships, and channel development. Track record scaling platforms to national distribution.
Jason Dierks — CFO & Treasurer (5%)
Finance lead overseeing unit economics, capital strategy, and investor relations. Deep expertise in finance and operational scaling.
Employee Stock Option Pool (5%)
Reserved for key technical, commercial, and operational hires.
Why Invest Now?
1. Massive Zero-CAC Distribution Opportunity
Employer Groups and DPCs control millions of lives and need our execution layer. We plug in seamlessly without customer acquisition costs.
2. Software Economics in Healthcare-Adjacent Market
90% gross margins, 1:2,500 support ratios, near-zero marginal cost per life — while solving a $500B problem.
3. Non-Clinical Model = Rapid National Scale
No state healthcare licenses, no clinical staff, no medical liability — deploy to all 50 states immediately.
4. Premium Tier Creates Exponential Value
Just 1% conversion at $165/month drives 72% of Year 5 revenue — with significant upside potential.
5. Clear Path to High-Value Exit
$165.6M ARR at 4-6x revenue multiple = $660M-$990M valuation by Year 5.
Comparable Companies & Exit Potential
Strategic Acquirers
- Health Plans: UnitedHealth, Anthem, Humana (need engagement solutions)
- Pharmacy Benefits: CVS/Aetna, Express Scripts (adherence is core metric)
- Digital Health: Teladoc, Babylon, Carbon Health (need daily engagement)
- Employee Benefits: Willis Towers Watson, Mercer, Aon (seeking differentiated benefits)
Comparable Valuations
- Omada Health: 4.5x revenue ($450M on $100M revenue)
- Livongo (exit): 37x revenue at acquisition ($18.5B on $500M)
- Virta Health: 10x revenue ($2B on $200M)
- Ginger/Headspace: 6x revenue ($3B on $500M combined)
Our Advantage: Zero-CAC distribution and software margins position us for premium multiples.
Investment Terms
- Round Size: $1.6M seed
- Structure: SAFE; $16M post-money valuation cap
- Minimum Check: $250K
- Lead Investor: Seeking strategic with employer benefits or healthcare system executives
- Timeline: Rolling close through Q1 2026
Appendix: Detailed Financial Assumptions
Revenue Assumptions
- Employer Group PEPM: $0.65 flat across all employer sizes
- DPC PMPM: $0.65-$1.00 based on clinic volume
- Premium Tier: $165/month ($1,980/year)
- Premium Conversion: 0% Y1, 0.25% Y2, 0.5% Y3, 0.75% Y4, 1% Y5
- Churn: 5% annually at base tier, 10% at premium tier
Cost Assumptions
- Support Ratio Evolution: 1:1,500 (Y1) → 1:2,000 (Y2) → 1:2,500 (Y3-Y5)
- Infrastructure: 10% of revenue (AI, cloud, messaging)
- Gross Margin: 87% (Y1) → 90% (Y2-Y5)
- Compliance & Legal: $100K (Y1) → $250K (Y2) → $500K (Y3) → $750K (Y4) → $1M (Y5)
Operating Expense Assumptions
- Product & Engineering: 30% of revenue (Y1) → 20% (Y2) → 15% (Y3) → 10% (Y4) → 7% (Y5)
- Sales & Commercial: 24% of revenue (Y1) → 16% (Y2) → 12% (Y3) → 8% (Y4) → 6% (Y5)
- General & Administrative: 15% of revenue (Y1) → 10% (Y2) → 7.5% (Y3) → 5% (Y4) → 4% (Y5)
Growth Assumptions
- Employer Group Lives: 100K → 500K → 1.5M → 3M → 5M
- DPC Lives: 50K → 150K → 300K → 600K → 1M
- Total Lives: 150K → 650K → 1.8M → 3.6M → 6M
- Premium Members: 0 → 1,625 → 9,000 → 27,000 → 60,000
Contact
For investor inquiries:
Kenny Lyman, CEO
619.517.8122
kennylyman@locallifecare.com
Local Care Systems Inc DBA Local LifeCare — The Life Care Platform solving healthcare's execution gap through zero-CAC distribution and software economics.