Future Cardia
About this raise
Future Cardia, with a valuation of $46.9 million, is raising funds on StartEngine. It is a medical technology startup manufacturing a heart failure cardiac monitor. Future Cardia’s monitor is a small device that uses remote monitoring technology and artificial intelligence to gather comprehensive cardiac data. It is one of the companies selected by Johnson & Johnson Innovation to join its global network to create life-saving wellness solutions and has successfully impacted the device in 39 patients in 2024. Jaeson Bang founded Future Cardia in May 2019. The current crowdfunding campaign has a minimum target of $7,500 and a maximum target of $1.74 million. The campaign proceeds will be used for clinical operations, research and development, working capital, and marketing.
Investment Overview
Committed $818,464 :
Deal Terms
Company & Team
Company
- Year Founded
- 2019
- Industry
- Healthcare & Pharmaceuticals
- Tech Sector
- Distribution Model
- B2B2C
- Margin
- Medium
- Capital Intensity
- High
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Synopsis
Future Cardia operates in the healthcare and pharmaceuticals industry, focusing on cardiac monitoring solutions. The company specializes in developing a heart failure cardiac monitor designed to provide continuous and accurate cardiac data. This device uses remote monitoring technology and artificial intelligence to gather comprehensive cardiac information. The primary customers for Future Cardia include healthcare providers and clinicians who require reliable and extensive cardiac monitoring to improve patient care and outcomes.
The problem addressed by Future Cardia is the significant challenge of managing heart failure, which affects millions of patients in the U.S. alone. Traditional cardiac monitoring devices often lack the precision and compliance needed for effective long-term monitoring. This gap leaves healthcare providers with limited tools to proactively manage heart failure, leading to frequent hospitalizations and increased healthcare costs.
Future Cardia's solution is a small, under-the-skin cardiac monitor that provides continuous monitoring of cardiac function. The device collects data on ECG and heart sounds, allowing healthcare providers to assess cardiac health trends and intervene proactively to prevent heart failure decompensation events. This approach aims to reduce unnecessary hospital visits and improve patient management.
In everyday scenarios, heart failure patients often face uncertainty about their condition, leading to either unnecessary emergency room visits or delayed medical attention. Future Cardia's device offers a practical solution by providing real-time cardiac data, helping patients and healthcare providers make informed decisions without the need for constant hospital check-ups. This aligns with the growing trend towards remote health monitoring and data-driven healthcare practices.
Price
Future Cardia is offering Common Equity in its current fundraising round, with a pre-money valuation set at $46.9 million. The price per share is $3.00. Investing through Common Equity provides shareholders with voting rights and a direct stake in the company's success. However, Common Equity holders are typically last in line for claims on assets in the event of liquidation, which can be a disadvantage compared to Preferred Equity.
In terms of exit potential, startups in the healthcare and pharmaceuticals industry often aim for substantial growth to achieve successful exits. For Future Cardia to deliver a 10X return to investors, the company would need to reach a valuation of approximately $469 million at the time of exit. This calculation does not account for dilution, which can impact the final return. To achieve such a valuation, Future Cardia would likely need to demonstrate significant market adoption, secure FDA approval, and expand its product offerings.
The valuation of Future Cardia should be considered in the context of industry revenue multiples. While specific revenue multiples for Future Cardia are not provided, healthcare technology companies often trade at varying multiples depending on growth prospects and market conditions. High revenue multiples can indicate that a deal may be overvalued, potentially offering less favorable terms to investors. Investors should carefully assess the company's growth trajectory and market position when considering the investment opportunity.
Market
The addressable market for Future Cardia is the U.S. Cardiac Monitoring sector, valued at approximately $11.3 billion with an annual growth rate of 5.43%. This market is driven by a growing prevalence of heart failure and cardiovascular diseases, along with an increasing demand for advanced monitoring technologies that can provide continuous and accurate health data.
Key market drivers include an aging population, rising healthcare costs, and a shift towards preventative healthcare measures. The increasing adoption of remote monitoring technologies and artificial intelligence in healthcare is also reshaping the way cardiac conditions are managed, allowing for more proactive and personalized patient care.
These trends positively impact Future Cardia’s growth potential by aligning with the demand for innovative solutions in cardiac health management. The company's focus on AI-driven and under-the-skin monitoring technology differentiates its product within the broader market, appealing to healthcare providers seeking reliable and comprehensive monitoring solutions.
While the cardiac monitoring market is vast, Future Cardia’s product may initially appeal to a niche segment focused on heart failure management. As the company achieves regulatory approvals and demonstrates efficacy, there is the potential to expand its target market to include broader cardiac health applications.
Team
Future Cardia is led by a team of experienced professionals with diverse backgrounds in cardiology, medical technology, and business operations. Jaeson Bang, the Founder and CEO, brings over 20 years of experience in clinical, business, and tech operations, having previously worked with Silicon Valley startups as well as Medtronic and Abiomed. His leadership is critical in steering the company towards achieving its market entry and commercialization goals.
Anatoly Yakovlev, PhD, serves as the Data Scientist. He is a biomedical engineer and AI expert with a PhD from Stanford University. His expertise in neuro-modulations and machine learning is instrumental in developing the AI-driven aspects of Future Cardia's cardiac monitoring technology.
Adam Gullickson, the VP of Operations, has over 21 years of experience in R&D, manufacturing, quality, and regulatory pathways. His skills are vital for navigating the complex regulatory landscape and ensuring the product meets industry standards.
Steve Zielinski, VP of Systems Engineering and Software, is a veteran in medical device R&D with over 20 years of experience. His expertise in systems development and AI applications supports the technical advancement of Future Cardia's product offerings.
The team is further strengthened by a group of seasoned advisors, including Dr. Dan Burkhoff, a renowned cardiologist with extensive experience in heart failure and medtech startups. His insights are valuable for aligning the company's product development with clinical needs and market demands.
While the team possesses strong technical and operational expertise, there may be a gap in marketing capabilities, which could be critical for achieving Future Cardia's future milestones, particularly in product launch and market penetration. Addressing this gap could enhance the company's ability to effectively promote its solutions and expand its customer base.
Differentiation
Future Cardia operates in a competitive landscape with several notable competitors in the cardiac monitoring industry. Boston Scientific and Medtronic are two prominent players that offer advanced cardiac monitoring solutions. Boston Scientific is a well-established company with a broad range of medical devices, including cardiac monitors. Their products are generally larger in scale and have a well-established market presence. Medtronic, another major competitor, provides comprehensive solutions for cardiac health, leveraging extensive resources and a global distribution network.
Compared to these larger companies, Future Cardia is a smaller entity focused on a specific niche within the cardiac monitoring market. Its product aims to provide a unique under-the-skin monitoring solution, potentially offering higher compliance and precision. Pricing details for Future Cardia's device are not explicitly provided, but the company emphasizes low manufacturing costs, which may allow for competitive pricing against larger competitors.
The customer demographics for Future Cardia primarily include healthcare providers and clinicians who manage patients with heart failure and other cardiac conditions. These professionals seek reliable and comprehensive monitoring tools to enhance patient care and outcomes. Patients benefiting from Future Cardia's technology are typically older adults and individuals with a history of cardiac issues, aligning with the broader trends of an aging population and increasing prevalence of heart-related health challenges.
Performance
Future Cardia is currently in the pre-revenue stage, reflecting its focus on product development and clinical validation. The company has successfully implanted its cardiac monitoring devices in 39 patients, collecting over 60,000 hours of cardiac data. This milestone indicates progress in clinical trials and supports the company's move toward commercialization.
The most recent monthly burn rate stands at $300k, with cash on hand amounting to $1.2 million. This financial position provides a runway of approximately four months, emphasizing the importance of securing additional funds to support ongoing operations and product launch efforts.
Future Cardia aims to achieve FDA 510(k) submission by mid-year, which is a key step toward market entry. The company projects to generate $6.2 million in revenue within the first two years following its launch in 2025, with an anticipated deployment of 5,000 implants expected to yield approximately $23 million over four years. These projections underline the company's strategy to establish a foothold in high-volume regions and expand its market presence.
The company's backing by Stanford StartX and Johnson & Johnson's JLABS provides additional credibility and support in its pursuit of commercialization. However, the path to profitability will depend on successful market adoption, regulatory approval, and the ability to scale operations efficiently.
Risk
Future Cardia presents several specific risks that potential investors should consider. A prominent concern is the company's financial situation, characterized by high cash burn and limited runway. The company reports a monthly cash burn rate of approximately $300k, with cash and cash equivalents of $1.2 million. This financial position indicates a runway of around four months, which underscores the urgency of securing additional funding to maintain operations and support growth initiatives.
Another significant risk is the high capital intensity level associated with developing and commercializing medical technology solutions. The process requires significant investment in research and development, as well as navigating complex regulatory pathways for FDA approval. These factors can lead to delays and additional costs, impacting the company's ability to achieve market entry and financial sustainability.
The market for cardiac monitoring devices is competitive, with several established players and new entrants. Future Cardia's need to differentiate itself from competitors and gain adoption poses a challenge. Achieving significant market penetration will require proving the efficacy and reliability of its device, as well as establishing strong partnerships with healthcare providers.
Additionally, the regulatory environment presents inherent risks due to the high level of scrutiny and compliance required for medical devices. Any setbacks in obtaining FDA clearance or navigating regulatory requirements could delay product launch and impact market entry timelines.
Finally, the absence of paying customers and revenue growth at this stage increases the reliance on external funding to support ongoing operations. While the company plans to launch its product in 2025, the path to profitability remains uncertain, dependent on successful commercialization and market acceptance.
Bullish Outlook
Several factors contribute to a bullish outlook for Future Cardia. The company operates within the $11.3 billion U.S. cardiac monitoring market, which is experiencing a growth rate of 5.43% annually. This expanding market presents ample opportunities for Future Cardia to capture a share, especially with its focus on advanced cardiac monitoring solutions that leverage AI and remote technology.
Future Cardia's competitive advantage lies in its under-the-skin monitoring technology, which aims to provide continuous and precise cardiac data. This approach could address gaps in current monitoring solutions, potentially leading to higher patient compliance and better clinical outcomes. The company's strong team, led by Jaeson Bang, offers extensive experience in medtech and AI, aligning well with Future Cardia's goals.
Institutional backing from Stanford StartX and Johnson & Johnson's JLABS enhances the company's credibility and provides additional resources for development and commercialization. These partnerships underscore the potential for Future Cardia to navigate market challenges and achieve regulatory milestones.
The company plans to target high-volume regions post-launch, projecting revenue generation of $6.2 million within the first two years and $23 million over four years. This strategy, combined with the implementation of 5,000 implants, highlights a clear path toward market penetration and revenue growth.
While Future Cardia is pre-revenue, its potential for generating substantial revenue post-launch is supported by a comprehensive go-to-market strategy and the market's growing demand for effective cardiac monitoring solutions. The company's valuation and investment terms may be seen as favorable, offering investors an opportunity to engage with a company poised to leverage market trends and technological advancements.
Bearish Outlook
Several factors contribute to a bearish outlook for Future Cardia. One primary concern is the company's current financial position, characterized by a high cash burn rate of $300k monthly and only $1.2 million in cash reserves. This limited runway poses a significant risk, as the company needs to secure additional funding to sustain operations and achieve its commercialization goals.
The competitive landscape presents another challenge. Future Cardia operates in a market with established players like Boston Scientific and Medtronic, which have extensive resources and market penetration. The company's smaller size and niche focus may limit its ability to compete effectively and capture market share, especially if larger competitors develop similar technologies.
Regulatory hurdles are a significant growth inhibitor. The path to FDA approval is complex and resource-intensive, and any delays or setbacks could further strain the company's financial resources and delay market entry. Additionally, the need for robust clinical validation to prove the efficacy and safety of its device is critical but costly.
Market adoption poses another risk, as Future Cardia relies on gaining acceptance from healthcare providers to drive sales. Without a broad customer base and proven market demand, the company may struggle to generate sufficient revenue post-launch.
Lastly, the company's current valuation may be seen as unfavorable compared to industry benchmarks, especially given its pre-revenue status. Investors may be cautious about the potential for dilution or the need for future funding rounds, which could affect the overall investment return.
Executive Summary
Future Cardia is a healthcare technology company focused on developing a cardiac monitoring device that utilizes AI and remote monitoring to provide comprehensive cardiac data. The primary customers are healthcare providers and clinicians managing patients with heart failure, aiming to improve patient outcomes through continuous monitoring.
The company is offering Common Equity at a pre-money valuation of $46.9 million, with shares priced at $3.00. While still in the pre-revenue stage, Future Cardia has demonstrated clinical progress by implanting its devices in 39 patients, collecting substantial cardiac data. The financial health shows a monthly burn rate of $300k and $1.2 million in cash, providing a limited runway. The company projects significant revenue post-launch, contingent upon achieving regulatory approvals and market entry.
The U.S. cardiac monitoring market, valued at $11.3 billion and growing at 5.43% annually, presents a substantial opportunity. Future Cardia's differentiation lies in its under-the-skin monitoring approach, which aims to offer higher compliance and precision. Competing with larger entities like Boston Scientific and Medtronic, the company targets a niche market initially, with potential expansion as it gains regulatory approval.
The team, led by Jaeson Bang, possesses strong expertise in medtech and AI, aligning well with company goals. However, marketing capabilities may need strengthening to support product launch and market penetration. Risks include the high cash burn, regulatory challenges, and the need for market adoption. The team's expertise in navigating these challenges is a critical factor in mitigating risks.
From a bullish perspective, Future Cardia benefits from favorable market trends, a growing demand for advanced monitoring solutions, and strong backing from institutions like Stanford StartX. Conversely, the bearish outlook highlights the financial constraints, competitive landscape, and regulatory hurdles that could impede growth.
Overall, Future Cardia presents a mixed investment opportunity. The company's innovative approach and alignment with market needs are promising, but the financial and regulatory risks require careful consideration. Investors should weigh the potential for significant market impact against the challenges of achieving commercialization and profitability.
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Company Funding & Growth
Funding history
- Total Prior Capital Raised
- $16,500,000
- VC Backed?
- Yes
Offering Name | Close Date | Platform | Valuation | Total Raised | Security Type | Status | Reg Type |
---|---|---|---|---|---|---|---|
Future Cardia | 03/27/2025 | StartEngine | $46,899,441 | $818,464 | Equity - Common | Active | RegCF |
Future Cardia | 12/19/2024 | Wefunder | $44,206,629 | $1,751,155 | Equity - Common | Funded | RegCF |
Future Cardia | 06/03/2024 | StartEngine | $40,112,855 | $3,498,881 | Equity - Common | Funded | RegCF |
Future Cardia | 06/20/2022 | StartEngine | $20,000,000 | $3,114,169 | Equity - Common | Funded | RegA+ |
Oracle Health | 08/29/2021 | Republic | $20,000,000 | $3,289,558 | Equity - Common | Funded | RegA+ |
Oracle Health | 03/23/2020 | Microventures | $5,000,000 | $275,104 | SAFE | Funded | RegCF |
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.