24 Jul 2018: This start-up has invented the best cure for hangovers
82 Labs is a US-based start-up that manufactures drinks to reduce morning-after hangovers.
The consumer goods company produces and sells herbal drinks which are FDA-compliant.
Founded by Korean-American entrepreneur Sisun Lee, 82 Labs' flagship product is the Morning Recovery drink, marketed as a dietary supplement.
The key herbal ingredient in Morning Recovery is an ideal quantity of DHM.
DHM: So what is this magic herb?
The drink is based on a popular South Korean herbal medicine called DHM (dihydromyricetin), a component which is extracted from the fruit of an oriental raisin tree.
DHM helps rid the body of toxic acids produced by alcohol which causes headaches and vomiting.
82 Labs bottles DHM with vitamins, electrolytes, and milk thistle, all of which are known to have detoxifying effects.
Funding: 82 Labs is currently valued at $33 million
In April, 82 Labs raised $8 million in Series A funding from Altos Ventures, Slow Ventures, Strong Ventures, and Thunder Road Capital.
Launched in August last year, it initially also raised $450,000 from angel investors and early backers courtesy an Indiegogo campaign and appearance on Product Hunt.
82 Labs, that dedicates its name to South Korea's country code, has been earning $500,000 monthly since.
Background: 82 Labs was incepted when Lee was in South Korea
Morning Recovery has been brought to America from South Korea, where hangover drinks are quite common.
About a year ago, 26-year-old Lee visited the place where his friends introduced him to popular local herbal drinks to cure his hangover, which worked wonderfully for him.
After his return to the US, he shared the Korean drinks among his friends, who loved them as well.
Fact: Starting the business
Once Lee discovered it could be a potential money-maker, he contacted companies to get permitted as a distributor, but they didn't want someone with no background in consumer goods representing them. Then he thought, why not make it himself? That's how the business was started.
Details: Take Morning Recovery after drinking, before going to bed
Morning Recovery costs $29.95 for a six-pack of 3.4-ounce bottles.
According to Lee, there is a $113 billion market opportunity for hangover remedies, given the $1.2 trillion global alcohol industry.
Lee said, "In our first nine months of operation, we raised $9.5 million in VC financing and made over $5 million in revenue." By October 2017, the company had hit $1 million in sales.
Fact: Former Tesla staffer
Prior to founding 82 Labs, Lee was a staff product manager at Tesla. Before that, he has also worked as a product manager at Uber and Facebook.