A $5 Billion Opportunity to Treat Heart Failure

Plus, Coterie on the podcast & #TechMadness is BACK!

Heyyyo,

March is my absolute favorite month; St. Patty’s Day, Spring Break, March Madness and Chicago Inno’s #TechMadness… which is basically the startup version of March Madness! What’s not to love, right?!?

For me it’s always very cool because I get to see some of the amazing founders I’ve interviewed finally earn a spot on a list of Chicago’s fastest growing tech companies.

This year is different though; I get to see my own company make the list (proud dad moment). Obviously, it would warm my heart to earn your vote — but, participating in the pool is a fantastic way to learn about what Chicago Tech has to offer!

Click Away 👉 https://bit.ly/3l4E9GM

[Extra Points for Songfinch votes — click on the purple bird]

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For my newbs; every week I breakdown a startup pitch with the added hook that you don’t have to be a rich guy to invest (if you don't know what that means, click here).

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On the pod: If you’ve followed my podcast over the years, you know I love me some InsurTech (just ask former Lightbank MP Vic Pascucci, lol). And, what’s not to like??? Clearcover, Snapsheet, Kin Insurance, Vouch, Coverwallet, AmFam Ventures, FIGO, Dais, Obie… to name a few! Time to add another disruptor to the list — Coterie.

Here's my podcast w/ Coterie founder David McFarland 👉 https://spoti.fi/3bwAAWJ

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Scott

#pitchreview time!


Company Bio

Oracle Health is a heart failure cardiac monitor using remote monitoring technology and AI.

Oracle Health is developing a tiny, insertable cardiac device to monitor Heart Failure and reduce unnecessary hospitalizations. This tiny device utilizes multi-sensors, remote monitoring technology and cloud based Artificial Intelligence for long-term comprehensive cardiac monitoring.

This is a simple 2-minute office procedure that does not require a follow up. Thus saving time for both patients and cardiologists.

See Market Analysis. I’m far from an expert in the field of medicine so all I can do is rely on research and go with my gut (heart 🧐) on this pitch. What I can say after digging in a bit is there’s a lot of companies tackling the physical problem, but very few addressing the mental problem, which is fear… nobody likes going to the doctor, let alone flying a bug up your you-know-what. Oracle is as minimally invasive as you can get without walking around with wires under your shirt.


Meet the Founder

Watch my full interview with Oracle Health founder and CEO Jaeson Bang, here.

Jaeson Bang is Oracle Health’s founder & CEO. Prior to this, Jaeson spent nearly two decades in the clinical-tech and startup space working for Medtronic, CVRx, Abiom, and Keystone Heart (Israeli startup) focused on operations and development.

Jae is an amazing guy. He truly lives for his work and has plenty of relevant experience to have the network and know-how to get Oracle to market. The acceptance by Johnson & Johnson Innovation is also pretty powerful. If I had to pick at anything it would be the lack of a meaningful exit in the space! Usually, I don’t go there but MedTech is weird like that… Hospital groups love a big name!


Traction

  • World renowned team of physicians, scientists, engineers & entrepreneurs 

  • 180 years of combined expertise in Heart Failure and implantable devices

  • 25 Heart Failure patients already enrolled in pre-clinical testing

  • Accepted into exclusive Johnson & Johnson Innovation Network

Traction is hard to report on for early stage MedTech companies such as Oracle because all I have to work with are studies and a prototype. Oracle appears to be pacing well, but it’s just too early to tell if the product (which looks quite legit) will ever meet a patient.


Market Opportunity

Oracle Health’s monitor promises to capture part of the $5.3 billion market for arrhythmia detection devices. Problem is, Oracle will have to contend with a handful of competitors ranging from venture-backed startups to established medical device manufacturers developing their own implants for tracking heart failure.

Eko, for instance, creates a digital stethoscope for more precise heart and lung monitoring in cardiac patients. While the company doesn't have an implantable device, as with Oracle, it does have nearly $100m in venture capital, and it’s not hard to imagine Eko using that war chest to expand its suite of products and develop an implantable device of its own. Same with Analytics 4 Lyfe, a Toronto-based company that has raised $29 million to develop A.I. solutions for diagnosing coronary artery disease. AliveCor, out of the Bay Area, has raised $154 million for its technology that turns a smartphone into an electrocardiogram recorder. Let’s not forget that Apple has integrated ECG technology into the latest version of its Apple Watch. Both companies allow for heart monitoring that is much less invasive than an implant.

Oracle aims to win out by creating a device that is far more precise and provides feedback in real-time. The hope is the device can detect heart abnormalities earlier, thus saving lives. Oracle is going to need a lot of cash (its fundraising goal is $8 million) and two years to get its product.

Still, the addressable market is large. So if Oracle can deliver on its promise of creating a better heart monitor, it can carve out a niche within this crowded space.


Terms & Takeaway

Invest in Oracle Health here 👉 https://bit.ly/38t9EFu

Security Type: Stock Purchase Agreement
Valuation Cap: $20,000,000
Investment Goal: $8,000,000
Raised (as of publishing): $721,570
Minimum Investment: $250

Here's what I like: Oracle is the minimally invasive solution. Between digital stethoscopes and Apple Watch there’s a lot of green field; Apple Watch is more of a daily tracker that proves you’re still alive, while the other option is a fairly uncomfortable medical experience— Oracle on the other hand, is a 2 minute plug & play… I think it gives people that are afraid a less frightening option. In some ways, that’s what Oracle is selling; a better way. And, if that leads to more people having the potentially life-saving procedure done, adoption will be swift!

Here's what I don't love: There are literally no assurances Oracle Health will make it to market or become a widely used device. In the SaaS universe, I can effectively buy into my market, or at least have some control over my fate. Here, I have no such control and with a $20m valuation, my stock is basically just a huge bet on Jae and team to sell the hell out of the product!

Who should invest and why: First, it’s important to note that this deal is NOT a Crowd Safe, it's actual shares of the company so once you invest you’re pretty much locked in for the ride. That said, the ride should be pretty interesting — once the product is out of testing and in production they’ll have a clear mission and you’ll know pretty quickly if there’s traction. If there is, the likelihood of a major acquisition by a medical device maker is high. [Medical device manufactures are sorta famous for “buying innovation” because internal R&D is just too resource-consuming].

However, if Oracle doesn’t make it out of production or finds a cold reception 😭

Game over.

As always, startup investing is super high-risk, anything can happen. So, don't invest money you can’t afford to fill a hole in with 🕳💸

Invest in Oracle Health here 👉 https://bit.ly/38t9EFu

Questions? DM me on Twitter @kitun


Disclaimer: It goes without saying, but this information should not be constituted as financial advice, my investing opinions are my own and all diligence is the responsibility of each individual investor.