MD200982

This neurotechnology company presents a compelling investment opportunity as it transforms chronic pain and neurological disorder treatment. Using AI-driven, non-invasive neurofeedback, their flagship device provides an effective, drug-free alternative to traditional treatments, tackling a market valued at $1.8 trillion globally.

With regulatory clearance, proven clinical efficacy, and substantial early traction, they are on track for rapid expansion. Raising $10 million, the company aims to scale production, extend applications to anxiety and ADHD, and accelerate R&D, making this a promising entry point into the high-growth neurotechnology sector.

Overview

Industry: Medical Devices, Healthcare Technology, Neurotechnology
Founded: 2015
Mission: To transform chronic pain and neurological disorder treatment by offering drug-free, AI-powered neurofeedback solutions that are accessible, safe, and tailored to individual needs.

Problem & Solution

Problem: Chronic pain management is heavily reliant on opioids and other medications, often leading to addiction, high healthcare costs, and variable efficacy in treating pain at the neurological level.
Solution: The company’s flagship device utilizes EEG technology in a non-invasive headset to analyze and adjust brain activity through neurofeedback. This drug-free solution works to “retrain” the brain, providing lasting pain relief without the risks associated with pharmaceuticals.

Market Potential

Target Market: Chronic pain and mental health treatment markets, expanding to broader neurological applications.
Total Addressable Market (TAM): Chronic pain and neurological treatment market is valued at $1.8 trillion worldwide, covering more than 1.5 billion affected individuals.
Serviceable Obtainable Market (SOM): With plans to capture 2 million patients in the U.S. and EU, the company projects potential revenues of approximately $1.2 billion within the next five to seven years.
Growth Rate: Chronic pain treatment is expected to grow at a 6.9% CAGR due to demand for drug-free alternatives and rising awareness about mental health.

Product

Flagship Device: The wearable headset uses EEG to track brainwave data in real-time, delivering personalized neurofeedback to alter brain response to pain.
Technology: Brain-Computer Interface (BCI) paired with Electroencephalography (EEG) captures brain data and translates it into therapeutic neurofeedback.
Development Stage: Fully developed and market-ready, with regulatory clearance across the U.S., UK, and New Zealand.
Future Applications: In addition to chronic pain, the company is expanding its neurofeedback technology to address anxiety, ADHD, depression, and other neurological conditions.

Business Model

Revenue Streams:
‍
→ Device Sales: One-time purchase for consumers and healthcare providers.
→ Subscription: Annual software subscription supporting continuous therapy and data analytics
Sales Channels: Direct-to-consumer, partnerships with healthcare providers, and potential B2B sales through healthcare networks.
Customer Retention Strategy: Built on a “patient-for-life” model, the company maintains high retention by addressing chronic conditions and ensuring continual app and software updates.

Financials

Funding Requirements: $10 million to scale production, enhance R&D for new applications, and fund further clinical trials.
Revenue: Early revenue projections in the multi-million dollar range, with potential for exponential growth as market adoption increases.
Burn Rate: Estimated at $250,000/month, providing runway for 12 months with current resources.
Financial Metrics:

→ Customer Acquisition Cost (CAC): $60 per customer
→ Lifetime Value (LTV): Estimated at $2,880 over five years, with the likelihood of longer retention.
→ Gross Margin: 75% due to minimal variable costs.
→ Net Profit Margin: 30% projected once economies of scale are reached.

Competitive Landscape

Direct Competitors: Traditional opioid treatments, physical therapy, and clinical neurofeedback devices that require in-office visits.
Indirect Competitors: Pharmaceutical solutions and therapy-based treatments for chronic pain.
Competitive Advantage:

→ The company’s device is home-based, removing the need for costly in-clinic visits.
→ High accessibility and affordability compared to existing neurofeedback therapies.
→ A scalable, FDA-cleared alternative to traditional therapies with data-driven insights for both users and healthcare providers.

Traction & Milestones

User Adoption: Over 25,000 treatments delivered to date, with an anticipated user base of 1 million within the next five years.
Partnerships: Collaborations with health organizations for clinical validation and distribution networks.
Recognition: Recently recognized by key industry organizations for innovation in the healthcare and mental health sectors.

Funding Allocation

Manufacturing and Production: $4 million to meet increased demand and scalability.
Sales and Marketing: $1.7 million to expand market presence and drive adoption.
Research and Clinical Validation: $1.2 million for new product trials and extended applications.
General Administrative and IP: Ensuring regulatory compliance and intellectual property protection.

Exit Strategy

Acquisition Targets: Large healthcare or neurotechnology companies seeking innovation in non-invasive treatment options.
Timeline: Targeting a three- to five-year exit window, with acquisition or IPO as potential options depending on growth and market response.