Epi One

[Closed for Investment] Epi One, with a valuation of $45.01 million, is raising funds on StartEngine. The company has developed a diagnostic testing platform for early detection of cancer. Epi One uses its innovative DNA-based biomarker identification methods for faster and more accurate detection of cancer and can be used for the detection of prostate, lung, and pancreatic cancers. The company is led by an experienced team and is backed by $3.1 million in early angel funding. Michael Marquardt, Fang “Sophia” Fang, and Dr. Neng Yang founded Epi One in June 2016. The current crowdfunding campaign has a minimum target of $14,996.80 and a maximum target of $4.9 million. The campaign proceeds will be used for lab setup and equipment, company employment, research and development, marketing, legal and patent work, information technology, and working capital.

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Investment Overview

Raised this Round: Raised: $1,131,127

Deal Terms

Total Commitments ($USD)

Platform
StartEngine
Start Date
05/20/2024
Close Date
09/04/2024
Min. Goal
$14,997
Max. Goal
$4,999,991
Min. Investment

$495

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$7.28

Pre-Money Valuation

$45,009,372

Company & Team

Company

Year Founded
2016
Industry
Healthcare & Pharmaceuticals
Tech Sector
HealthTech
Distribution Model
B2B2C
Margin
Medium
Capital Intensity
High
Location
Brooklyn, New York
Business Type
Growth
Company Website
Visit Website

Team

Employees
4
Prior Founder Exits?
No
Founder Name
Sophia Fang
Title
President
Founder Name
Neng Yang
Title
Vice President

Financials

as of Fiscal Year 2023
 Revenue
$0
 Monthly Burn
$3,486
 Runway
24+ months

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-41,834

$-40,151

Summary Balance Sheet

FY 2023 FY 2022

Cash

$56,854

$78,180

Accounts Receivable

$0

$0

Total Assets

$60,113

$78,500

Short-Term Debt

$31,878

$2,261

Long-Term Debt

$0

$0

Total Liabilities

$31,878

$2,261

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Synopsis

Epi One is at the forefront of a transformative shift in the early detection of cancer, leveraging a diagnostic testing platform that utilizes innovative DNA-based biomarker identification methods. This approach promises to enhance the speed and accuracy of cancer detection, offering hope for the early identification of diseases such as prostate, lung, and pancreatic cancers. With a focus on making cancer detection both accurate and affordable, Epi One aims to impact the global cancer diagnosis market significantly, improving patient outcomes through early intervention.

Founded in June 2016 by Michael Marquardt, Fang “Sophia” Fang, and Dr. Neng Yang, Epi One has already attracted $3.1 million in early angel funding, underscoring the potential of its technology and the confidence of its early backers. The company is currently in the pre-revenue stage. Still, it is poised for growth, with plans to use its latest fundraising campaign proceeds for critical areas such as lab setup and equipment, research and development, and company employment. This strategic allocation of resources is designed to accelerate Epi One's journey toward market readiness and regulatory approval.

Operating under the tagline "Accurate, Affordable Early Cancer Detection," Epi One's mission is to demystify cancer through early detection and precise treatment. The company's participation in Downstate's Biotechnology Incubator accelerator program further emphasizes its commitment to innovation and excellence in the healthcare and pharmaceutical industry. As Epi One progresses towards its goal of revolutionizing cancer diagnostics, its DNA-based testing platform stands as a beacon of hope for early detection and the potential for more effective treatment strategies.

Next Section: Price

Price

Epi One is currently seeking investment through a crowdfunding campaign on StartEngine. Its pre-money valuation is set at approximately $45.01 million. Given that the company is pre-revenue and doesn't require FDA approval, it is overvalued.

Investors should weigh the high valuation against the potential for groundbreaking advancements in cancer detection and the associated market opportunities. While the valuation may appear steep for a company at this stage of development, the transformative potential of Epi One's technology in improving early cancer detection could justify the investment, assuming the company meets its development and commercialization milestones.

Next Section: Market

Market

The global cancer diagnostics market, as the target for Epi One's diagnostic testing platform, presents a significant opportunity with an addressable market size of approximately $107.45 billion. This market is experiencing a growth rate of 6.16%, driven primarily by the increasing prevalence of cancer worldwide, technological advancements in diagnostic procedures, and rising initiatives by private and public organizations. These factors collectively contribute to the high market potential for Epi One's innovative DNA-based biomarker identification methods aimed at early cancer detection.

The urgent need for early cancer detection technologies is underscored by projections from the Pan American Health Organization (PAHO), which estimates millions of new cancer cases and deaths annually, with an expected increase in reported cases to about 30 million by 2040. Moreover, statistics indicating that one in six women and one in five men are likely to develop cancer at some point in their lives further emphasize the critical need for advancements in diagnostic options. Epi One’s technology, designed to detect prostate, lung, and pancreatic cancers, addresses this need by providing faster and more accurate detection capabilities.

In addition to the growing market demand, collaborations such as the one between Radiopharm Theranostics and The University of Texas MD Anderson Cancer Center to develop novel radiopharmaceutical products highlight the ongoing efforts and investments in the field. Epi One stands to benefit from these trends, given its focus on early cancer detection and disease prognosis through DNA-based biomarker identification methods.

However, Epi One is entering an extremely competitive landscape, with established competitors in the cancer diagnostics sector. Given the high capital intensity associated with the healthcare and pharmaceuticals industry, particularly in developing and commercializing diagnostic technologies, Epi One's journey from pre-revenue to market entry will require careful navigation of funding, regulatory approvals, and market penetration strategies. 

Next Section: Team

Team

Epi One is led by a dynamic team combining expertise in healthcare leadership, scientific research, and cancer biology. With his tenure as the former American Cancer Society Board Chair, CEO Michael Marquardt brings a wealth of experience in both the tech and healthcare sectors. His leadership is grounded in a strong commitment to fighting cancer, supported by a Master’s in Chemistry from the University of Virginia (UVA). Marquardt's extensive business acumen and experience as a seasoned CEO and board member make him well-equipped to navigate the complexities of the healthcare and pharmaceutical industry, particularly in early cancer detection.

Co-Founder, President, Chief Scientific Officer, and Board Member Fang “Sophia” Fang, MD, PhD, contributes a deep understanding of genomics and cancer biology to Epi One. Her dual degrees from Harbin Medical University and Iowa State University and her research expertise from Memorial Sloan Kettering position her as a leading figure in the scientific strategy behind Epi One’s diagnostic testing platform. Sophia’s focus on leveraging DNA-based biomarker identification methods for faster and more accurate cancer detection is central to the company’s mission.

Dr. Neng Yang, MD, PhD, another co-founder and the Vice President of Research & Development, brings specialized knowledge in next-generation sequencing and CAR T-cell therapy. Her work at Sloan Kettering, particularly in pioneering single-cell sorting for leukemia and researching CAR T-cell therapy for lung cancer, underscores her significant contributions to the field. With an MD from Guangdong and a Ph.D. from Shanghai JiaoTong, Neng’s expertise is crucial for driving biomarker validation and furthering Epi One’s research and development efforts.

Next Section: Differentiation

Differentiation

Epi One Inc.'s differentiation strategy is rooted in its proprietary DNA-based biomarker identification methods, which offer faster, cheaper, and more accurate detection of prostate, lung, and pancreatic cancers. This technological advantage is particularly significant in a field where early detection can dramatically improve treatment outcomes and survival rates.

Many companies are involved in cancer diagnosis, including companies offering cancer biomarker assays, molecular diagnostic tests, and developing early cancer detection technologies. For example, Abbott Laboratories offers a range of cancer biomarker assays and molecular diagnostic tests for oncology applications, including leukemia, lymphoma, breast cancer, lung cancer, and other solid tumors. Thermo Fisher Scientific, another competitor, provides a comprehensive suite of cancer biomarker assays, including next-generation sequencing (NGS) panels, PCR assays, and immunohistochemistry (IHC) tests for cancer diagnosis and research.

If Epi One succeeds in being cheaper, faster, and more accurate than its competition, it could win considerable market shares. However, if it cannot bring a better product to market, it will struggle against pharmaceutical giants.

Next Section: Performance

Performance

Epi One Inc. has made significant strides in the healthcare and pharmaceutical industry, particularly in early cancer detection. The company's innovative approach to cancer diagnosis through its DNA-based biomarker identification methods has positioned it as a promising player in the global cancer diagnosis market. Despite being in the pre-revenue phase, Epi One has secured $3.1 million in early angel funding, underscoring investors' confidence in its potential to revolutionize prostate, lung, and pancreatic cancer detection.

Financially, Epi One reported cash and cash equivalents of $1.8 million, providing the company a runway to advance its diagnostic platform toward commercialization. Unfortunately, the company didn't disclose its monthly burn rate, which would be an essential factor in understanding its operational efficiency and long-term sustainability.

Next Section: Risk

Risk

Epi One presents several risk factors that potential investors should consider before committing capital. As a company in the pre-revenue phase focusing on the global cancer diagnosis market, Epi One's success is contingent on developing and commercializing its diagnostic testing platform. This platform, which aims to offer early detection of prostate, lung, and pancreatic cancers through innovative DNA-based biomarker identification methods, faces the challenge of achieving market acceptance amidst a highly competitive landscape.

The company operates in a competitive industry that must contend with established players and emerging technologies. Gaining a significant market share may require substantial time and resources, including extensive marketing and continuous innovation, to stay ahead of competitors.

Additionally, the likelihood of facing legal issues is high, a common risk in the healthcare and pharmaceutical industry, especially for companies developing new medical technologies. Litigations or regulatory compliance issues could result in substantial financial and reputational damage to Epi One.

Lastly, Epi One's valuation of $45.01 million might be considered high for a pre-revenue company, suggesting a risk of overvaluation. Investors should weigh the company's potential for innovation and market disruption against the inherent risks of investing in a pre-revenue, early-stage company within a highly competitive and regulated market.

Next Section: Bullish Outlook

Bullish Outlook

Epi One Inc. is primed to revolutionize the global cancer diagnosis market with its trailblazing diagnostic testing platform. The company leverages innovative DNA-based biomarker identification methods to enable early, accurate, and affordable prostate, lung, and pancreatic cancer detection. This positions Epi One at the vanguard of cancer diagnostics, distinguishing it in a highly competitive market and crucially important market.

With the global emphasis on early cancer detection to improve treatment outcomes and survival rates, Epi One's platform meets a critical need. The company's technology promises to surpass current market offerings in speed and accuracy, offering a compelling value proposition to healthcare providers and patients alike. Given the high mortality rates associated with cancers like pancreatic cancer, due to late detection, Epi One's early detection capabilities could be life-saving for many.

Epi One has secured $3.1 million in early angel funding, underscoring investors' confidence in its team and technology. This financial backing has supported the company's development phase, enabling significant progress toward marketing its diagnostic platform. Furthermore, the company's participation in Downstate's Biotechnology Incubator highlights its commitment to innovation and excellence in biotechnology.

With a vast and growing market potential, Epi One's business model, which likely combines B2B2C distribution strategies, is well-suited to capitalize on the increasing demand for advanced cancer diagnostics. The company's claims of a cheaper, more accurate, non-regulated cancer diagnosis technique set it apart in a market thirsty for innovation. Additionally, securing patents reinforces Epi One's competitive edge by protecting its unique technology.

In conclusion, Epi One Inc. is positioned for significant growth in the healthcare and pharmaceutical industry. Its innovative approach to early cancer detection, with strong funding and a clear market need, provides a bullish outlook for the company. As Epi One moves closer to bringing its diagnostic platform to market, its potential impact on the early detection and treatment of cancer is immense, making it a compelling opportunity for investors.

Next Section: Bearish Outlook

Bearish Outlook

While operating in the critical and fast-evolving field of early cancer detection, Epi One faces significant hurdles that present a bearish outlook for potential investors. The company is currently pre-revenue, with a valuation of $45.01 million based primarily on the potential of its DNA-based biomarker identification methods for early detection of prostate, lung, and pancreatic cancers. Despite the innovative approach and the backing of $3.1 million in early angel funding, several factors contribute to a cautious investment perspective.

Firstly, the global cancer diagnosis market, while large and growing, is extremely competitive. Epi One's claim of a cheaper, more accurate, non-regulated cancer diagnosis technique is yet to be proven in a market that includes well-established players with significant resources. The company's ability to compete effectively against these entities, secure market share, and achieve commercial viability remains uncertain.

Additionally, the high barriers to entry in the healthcare and pharmaceutical industry, including regulatory hurdles, clinical trials, and the need for extensive validation studies, compound the risks associated with Epi One. The company's technology, while promising, must navigate these challenges successfully before it can be considered a viable investment.

In conclusion, while Epi One's mission to innovate in early cancer detection is commendable, the company faces many challenges that contribute to a bearish outlook. Before proceeding, potential investors should carefully consider the competitive landscape, current financial position, and operational hurdles.

Next Section: Executive Summary

Executive Summary

Epi One Inc. stands at the forefront of cancer diagnostics innovation with its cutting-edge diagnostic testing platform aimed at early cancer detection. Leveraging DNA-based biomarker identification methods, Epi One aims to revolutionize the detection process for prostate, lung, and pancreatic cancers by offering faster and more accurate diagnostics than currently available alternatives. With a valuation of $45.01 million, Epi One's approach has attracted significant attention and funding, raising $3.1 million in early angel rounds, underscoring the confidence in its potential to impact cancer diagnosis profoundly.

The global cancer diagnosis market is experiencing rapid growth, driven by the increasing prevalence of cancer and the urgent need for early detection methods that can improve disease management and reduce mortality. With an estimated millions of new cancer cases and deaths annually, and projections indicating a significant rise in cases by 2040, Epi One's diagnostic solutions are positioned to address a critical and expanding need within the healthcare sector. The company's innovative approach has not only garnered interest at prestigious industry events like the ASCO Annual Meeting but has also led to the development of a product that could significantly alter the landscape of cancer care.

However, the journey ahead for Epi One is not without challenges. The cancer diagnostics field is extremely competitive, with high barriers to entry and significant capital requirements for research, development, and regulatory compliance. Epi One's ability to navigate this landscape will be critical as it moves forward with its plans for FDA clearance and seeks to capture market share in the highly lucrative but densely populated cancer diagnostics market.

In conclusion, Epi One Inc. represents a promising investment opportunity in the healthcare and pharmaceutical industry. It has the potential to substantially impact the early detection of cancer. Its innovative technology, experienced leadership, and strategic focus on addressing a critical healthcare need position it well for future growth and success in an increasingly important field.

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Company Funding & Growth

Funding history

Total Prior Capital Raised
$1,011,267
VC Backed?
No
Close Date Platform Valuation Total Raised Security Type Status Reg Type
12/04/2024 StartEngine $46,433,849 $1,884,266 Equity - Common Funded RegCF
09/04/2024 StartEngine $45,009,372 $1,131,127 Equity - Common Funded RegCF
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Growth Charts

Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Valuation History

Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Employee History

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Epi One on StartEngine 2024
Platform: StartEngine
Security Type: Equity - Common
Valuation: $45,009,372
Price per Share: $7.28

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