SmileDirectClub

SmileDirectClub, founded in 2014 by childhood friends Alex Fenkell and Jordan Katzman, operated as a teledentistry company specializing in clear aligner therapy. The founders' personal teenage experiences with traditional metal braces inspired them to find a more accessible and affordable teeth-straightening solution. Prior to SmileDirectClub, Fenkell and Katzman had collaborated on other entrepreneurial ventures, including a car detailing business and a payment application program. The company was established in Nashville, Tennessee, with initial seed money from Katzman's father, David Katzman, through his firm Camelot Venture Group.

The business operated on a direct-to-consumer model, leveraging teledentistry to connect customers with a network of licensed dentists and orthodontists who would oversee treatment remotely. This approach aimed to significantly reduce the cost of orthodontic care, offering clear aligners for up to 60% less than traditional options. Customers could begin the process by either visiting a physical "SmileShop" for a free 3D scan or by ordering an at-home impression kit. Based on this data, a licensed dental professional would create a custom treatment plan, and the 3D-printed, BPA-free plastic aligners were then shipped directly to the customer. Revenue was primarily generated through a one-time payment for the aligner treatment or a monthly payment plan called SmilePay. In addition to aligners, the company expanded its product line to include oral care products like electric toothbrushes, teeth whitening kits, and water flossers, which were sold exclusively at retailers like Walmart.

SmileDirectClub experienced rapid growth, securing significant venture capital funding, including a $380 million round in 2018 that valued the company at $3.2 billion. A major milestone was its Initial Public Offering (IPO) on the Nasdaq in September 2019, which initially valued the company at approximately $8.9 billion. However, the company faced numerous challenges, including legal battles, criticism from the professional dental community regarding its remote supervision model, and a failure to achieve consistent profitability. Despite serving over two million customers, the company accumulated nearly $900 million in debt. In September 2023, SmileDirectClub filed for Chapter 11 bankruptcy protection. After a failed attempt to sell the company, it announced the cessation of its global operations in December 2023, effectively shutting down the business and converting to Chapter 7 liquidation.

Keywords: teledentistry, clear aligners, direct-to-consumer orthodontics, oral care, cosmetic dentistry, Alex Fenkell, Jordan Katzman, at-home teeth straightening, SmilePay, dental technology, remote dental care, SmileShops, 3D printed aligners, direct-to-consumer healthcare, online orthodontics, affordable orthodontics, dental aligners, telehealth, Nashville startup, Chapter 11 bankruptcy, orthodontics industry, consumer health tech, medtech, SmileDirectClub shutdown