Assured Med Supply is offering Common Equity in its current fundraising round. The company has set a pre-money valuation of $9 million, with shares priced at $1.00 each. This valuation reflects the company's ongoing efforts to develop its AI-powered platform and secure key distribution partnerships.

Investing in common equity provides investors with ownership stakes in the company, aligning their interests with the long-term success of Assured Med Supply. However, common equity typically does not come with the preferential treatment that preferred equity offers, such as liquidation preferences or dividends. This means common equity investors are more exposed to the company's operational risks and will only see returns after all other obligations are met.

For Assured Med Supply to provide a 10X return to investors, the company would need to achieve a post-exit valuation of approximately $90 million (not accounting for dilution). This level of return could be driven by substantial milestones such as significant revenue growth, expanded market share, and successful strategic partnerships or acquisitions. Given the current pre-money valuation and the company's revenue of $41k, achieving such a valuation would require considerable growth and market traction.

The U.S. medical supplies wholesaling market is substantial, with an estimated size of $297.1 billion and a slow growth rate of 0.4% annually. Several key drivers and trends are influencing this market, potentially impacting Assured Med Supply's growth trajectory.

One significant market driver is the increasing demand for healthcare services, driven by an aging population and the prevalence of chronic diseases. As healthcare providers seek efficient procurement solutions to manage costs and ensure timely availability of medical supplies, there is an opportunity for Assured Med Supply’s AI-powered platform to gain traction. The growing focus on cost optimization and operational efficiency within healthcare facilities further supports the demand for streamlined procurement processes.

Another important trend is the adoption of technology and digital solutions in healthcare. The shift towards digital transformation is accelerating, with healthcare providers increasingly embracing AI and data analytics to enhance decision-making and improve operational efficiency. Assured Med Supply’s AI-driven platform is well-positioned to capitalize on this trend, offering advanced analytics and automated processes that align with the industry's move towards digitalization.

However, the market also presents challenges. The competitive landscape for medical supplies wholesaling is moderately competitive, with established players already holding significant market shares. This environment necessitates robust marketing and strategic efforts for new entrants like Assured Med Supply to build market presence and compete effectively.

Assured Med Supply targets a niche within the broader market—the segment of healthcare providers and medical supply purchasers looking for AI-enhanced procurement solutions. While the company’s platform can address the entire market, its appeal may be stronger among early adopters of technology and organizations looking to innovate their procurement processes. This niche focus allows the company to differentiate itself through its AI capabilities, although it also limits its immediate market reach to those specifically seeking advanced technological solutions.

Assured Med Supply is led by Roy Malkin (Co-Founder / CEO) who previously led RedSwan, a commercial real estate tokenization platform. He also runs Venture Aviator, a consulting firm that has built three tech companies that became unicorns. He holds an MBA from UCLA and also worked at Open Media Group, The Walt Disney Company, Liberty Media, and Credit Suisse 

Roy is joined by Gary Lipsky (Co-Founder / COO) who also served as Head of Product at Galactica Labs. He previously worked as VP of Product Development and FoxIO, and also previously founded Venture Spark, PINE.EARTH, JA1inc (acquired by FoxIO), Innovizo, and Clean Power Ventures. 

Finally, Dan Oparah is a Co-Founder and Advisor at Assured Med Supply. He is currently the CTO of RedSwan, a company he founded with Roy, and is also a UCLA MBA holder. He previously owned Blockvolution and Venture Aviator.

Assured Med Supply operates in a competitive landscape with several notable industry competitors. Key examples include McKesson Corporation, Cardinal Health, and Medline Industries. These companies are well-established players in the medical supplies wholesaling market, each with distinct capabilities and market positions.

McKesson Corporation is one of the largest medical supply wholesalers, with a broad product range and extensive distribution network. The company’s size allows it to leverage economies of scale, offering competitive pricing and comprehensive solutions. McKesson's product quality is generally high, supported by robust infrastructure and long-standing supplier relationships.

Cardinal Health is another significant competitor, known for its wide array of medical products and services. Cardinal Health combines product quality with value-added services such as inventory management and logistics support. The company’s pricing is competitive, and its large-scale operations enable it to meet diverse customer needs efficiently.

Medline Industries focuses on providing high-quality medical supplies and innovative solutions. Medline's product range is extensive, and the company emphasizes quality and customer service. Its pricing is competitive, particularly for bulk purchases, making it a preferred choice for many healthcare providers.

Compared to these competitors, Assured Med Supply is a smaller player but differentiates itself through its AI-powered platform. The company’s technology aims to streamline procurement processes, offering advanced analytics and automated workflows that are not typically found in the offerings of larger competitors. This focus on AI and digital transformation can be a key differentiator, particularly for tech-savvy customers seeking innovative procurement solutions.

Assured Med Supply targets healthcare providers and medical supply purchasers who are looking for efficient and cost-effective procurement solutions. The primary customer demographics include hospitals, clinics, and other healthcare facilities that prioritize operational efficiency and cost management. These customers are likely to be early adopters of technology, open to integrating AI and data analytics into their procurement processes.

Assured Med Supply's recent financial performance highlights several key metrics and growth rates that are critical for evaluating the company's current position and future potential. The company experienced a significant year-over-year revenue drop, from $3.2 million to $41k. This is due to the company pivoting to its AI-assistant software, which has not yet been released to customers.

The company's most recent monthly burn rate is approximately $7.2k, with cash on hand at $1k. These figures suggest a limited financial runway, emphasizing the urgency for additional funding to sustain operations and support growth initiatives. The low cash reserves relative to the burn rate indicate potential liquidity issues, which could impact the company's ability to execute its strategic plans effectively.

Assured Med Supply faces several unique risks that potential investors should consider. These risks stem from the company’s financial health, market positioning, and operational challenges.

The company’s revenue multiple is notably high at 217.9x. This reflects significant expectations for future growth, but also suggests that the current valuation may be overestimated. High revenue multiples can be indicative of potential overvaluation, especially in the absence of substantial and rapid revenue growth. This poses a risk for investors as the company must achieve significant milestones to justify its high valuation.

Assured Med Supply has experienced a large year-over-year revenue drop, from $3.2 million in the prior fiscal year to $41k most recently. THis is due to the company's pivot to an AI-powered software company. which is not yet in the hands of customers.

Up until this year, Assured Med Supply was a supplier of medical equipment to major hospitals and clinics across the United States. The company grew this business to over $5M+ in revenue and cultivated deep relationships and partnerships with nationwide hospitals and clinics. As a result, the company is now already an approved supplier at these institutions, a process that usually takes up to a year or more to get approved. This will allow for Assured Med Supply to quickly leverage existing relationships to get its AI-assistant into the hands of customers. Additionally, since the company has already played in the medical supply space, Assured Med Supply already has full access and relationships to suppliers that will get quickly integrated onto the platform.

Going through a dramatic business pivot like this always carries substantial risk. Since Assured Med Supply’s product is not in the hands of customers yet, there is no way of knowing how the rollout/feedback will be from hospitals. While the solution is serving an obvious need, developing and iterating on an AI-powered software product will always carry hiccups that will need to be addressed in real-time. Additionally, there is always the possibility that there are large competitors in the medical supply space that are building similar products that will compete with Assured Med Supply.  

Medical supplies are one of the largest expenses for hospitals, with millions being spent per year to keep critical instruments and materials in stock for surgeries and medical procedures. However, shortages continually plague the industry, often requiring hospitals to pay up to 10X prices for critical supplies that are in urgent need. If hospitals can’t get hands on these materials, surgeries are often delayed and can cause both negative patient outcomes and missed revenue for the hospital. Assured Med Supply has developed an AI-copilot assistant to streamline the process of purchasing medical equipment for hospitals and clinics, easily allowing them to compare prices across multiple different supplier sources and ultimately paying a fair price. The company used to be a pure-play supplier of medical supply equipment, and has now pivoted into developing its AI-solution to address the inefficiencies plaguing the supply procurement process for hospitals and clinics.