Future Cardia is offering Common Equity in its current fundraising round. The company is valued at $44.2 million pre-money, with a price per share set at $3.00. This valuation reflects the company's progress in developing its cardiac monitoring device and its strategic partnerships with leading medical institutions and technology incubators. The company already raised close to $16 million in previous funding rounds.

Investing through common equity provides investors with ownership in the company, though it comes with no preferential treatment in dividends or liquidation preferences compared to preferred equity. This structure can benefit investors who believe in Future Cardia's long-term growth potential and are willing to accept the same risks and rewards as the company's founders and early team members.

To achieve a 10X return on investment, Future Cardia must reach a valuation of approximately $442 million without accounting for dilution. Given the company's projected revenue generation and market potential, several factors could contribute to this growth. For instance, obtaining FDA approval and successfully commercializing the cardiac monitoring device by 2025 could significantly enhance the company's market position and valuation.

In terms of revenue multiples, if Future Cardia were to achieve $23 million in revenue over four years with an initial deployment of 5,000 implants, a revenue multiple of 19.2x would be required to reach the target valuation. This high multiple reflects the premium placed on innovative medical technology companies, particularly those that can demonstrate significant market traction and growth potential.

Exit opportunities for Future Cardia could include acquisition by a larger medical technology company or an initial public offering (IPO). The company's strategic relationships with entities like Johnson & Johnson Innovation and Stanford's StartX accelerator program enhance its visibility and attractiveness to potential acquirers. Successful exits in the MedTech space often hinge on demonstrating robust clinical efficacy, regulatory approval, and substantial market penetration, all of which Future Cardia is actively working towards.

Several key factors, including the increasing prevalence of heart disease, advancements in medical technology, and the growing adoption of remote patient monitoring solutions, drive the cardiac monitoring market in the US. Heart failure alone affects over 6 million patients in the US annually, making it one of the most costly healthcare burdens. The need for effective monitoring solutions is underscored by the high incidence of hospitalizations related to heart failure, costing the healthcare system $40 billion per year.

Market trends such as the integration of artificial intelligence in medical devices and the shift towards value-based care positively impact the growth of companies like Future Cardia. Incorporating AI allows for more accurate and continuous monitoring, providing valuable insights that can lead to better patient outcomes and reduced hospital visits. Additionally, the focus on value-based care encourages healthcare providers to adopt technologies that can improve patient outcomes and reduce costs, aligning well with Future Cardia's product offering.

The addressable market for cardiac monitoring in North America is substantial, valued at approximately $10.6 billion and growing at a rate of 8.4% annually. This growth is driven by the increasing prevalence of cardiovascular diseases and the rising demand for advanced monitoring solutions.

Future Cardia's product targets a significant portion of this market by offering a comprehensive monitoring solution that can appeal to a wide range of patients and healthcare providers. The device's ability to provide continuous, real-time data through a simple under-the-skin procedure distinguishes it from traditional wearable and heart procedure devices, which may lack the same level of accuracy and patient compliance. This unique approach positions Future Cardia to capture a significant share of the cardiac monitoring market.

However, the company must navigate a competitive landscape with established players and prove the efficacy and reliability of its technology to gain widespread adoption. If successful, Future Cardia's product has the potential to significantly reduce the incidence of unnecessary hospital visits and improve overall patient care, aligning with broader healthcare trends and market needs.

A team of experienced professionals with diverse expertise in cardiology, medical technology, artificial intelligence, and regulatory affairs leads future Cardia. This collective experience is critical to advancing the company's mission of improving cardiac monitoring through innovative solutions.

Jaeson Bang, the Founder and CEO, brings over 20 years of experience in clinical, business, and tech operations at Silicon Valley startups, as well as major medical device companies like Medtronic and Abiomed. His background in cardiology and medtech startups, combined with his MBA from Northwestern University's Kellogg School of Management, positions him well to steer Future Cardia through the complexities of product development and market entry.

Anatoly Yakovlev, PhD, serves as the Data Scientist. With expertise in neuro-modulations and machine learning, Anatoly leads the AI innovations at Future Cardia. His experience at Oracle and his PhD from Stanford University underscore his capability to develop and implement advanced AI algorithms, which are central to the functionality of Future Cardia's monitoring device.

Adam Gullickson, the VP of Operations, has 21 years of experience in R&D, manufacturing, quality, and regulatory affairs. His specialization in navigating regulatory pathways is crucial for Future Cardia's goal of obtaining FDA approval. Adam's background in biomedical engineering from the University of Minnesota equips him with the technical and regulatory knowledge necessary to lead the company through the approval process and into commercialization.

Steve Zielinski, the VP of Systems Engineering and Software, is a medical device R&D veteran with over 20 years of experience. He has expertise in systems development and AI applications, having led the development of Coloplast's first active implantable neuromodulation device. His engineering background from the University of Minnesota and the University of St. Thomas supports Future Cardia's technical development and integration of AI into its devices.

The advisory team includes notable experts such as Dr. Dan Burkhoff, MD PhD, a world-renowned cardiologist with a history of successful medtech startups, and Dr. Kevin Heist, MD PhD, a leading cardiologist and electrophysiologist at Harvard Medical School. Their guidance is invaluable for clinical validation and strategic direction.

The team's expertise aligns well with Future Cardia's objectives of developing a cutting-edge cardiac monitoring device, navigating regulatory approvals, and achieving market penetration. However, as the company moves towards commercialization, it may benefit from additional expertise in large-scale manufacturing and global sales strategies to ensure smooth scaling and distribution of its product.

Future Cardia differentiates itself in the cardiac monitoring market through its use of remote monitoring technology and artificial intelligence integrated into a small, implantable device. This approach contrasts with traditional cardiac monitoring solutions, which often rely on wearable devices or more invasive procedures.

Two notable competitors in the cardiac monitoring space are Medtronic and Abbott Laboratories. Medtronic, a large and established player in the medical device industry, offers a range of cardiac monitoring products, including implantable loop recorders. These devices are larger and more invasive compared to Future Cardia's subcutaneous monitor. Additionally, Medtronic's products are typically priced at a premium, reflecting the company's extensive research and development capabilities and established market presence.

Abbott Laboratories, another major competitor, provides implantable cardiac monitors such as the Confirm RX Insertable Cardiac Monitor. Similar to Medtronic, Abbott's devices are larger and more invasive than Future Cardia's solution. Abbott also leverages its strong brand and extensive distribution network to maintain a significant market share, often leading to higher product prices.

Future Cardia targets a broad demographic of patients with heart failure and other cardiac conditions. The primary customers are healthcare providers, including hospitals and cardiology clinics, that seek advanced monitoring solutions to improve patient care and outcomes. The device's ease of implantation and continuous monitoring capabilities make it suitable for a wide range of patients, from those with chronic heart conditions to those at risk of acute cardiac events.

Future Cardia's focus on AI-driven, real-time monitoring sets it apart from its competitors. By providing continuous, accurate data, the company's device empowers clinicians to make informed decisions, potentially reducing hospitalizations and improving patient outcomes. The company's low manufacturing costs enable an 81% profit margin on its devices, which could make it a more cost-effective option for healthcare providers compared to the higher-priced offerings from Medtronic and Abbott.

Future Cardia has demonstrated significant progress in developing and deploying its cardiac monitoring technology. In 2024, the company successfully implanted its devices in 39 patients, with plans to expand to hundreds more at medical centers of excellence. This milestone indicates the safety and efficacy of the technology in real-world settings, which is crucial for gaining market acceptance and achieving regulatory approvals.

The company's financial metrics reflect its current stage of development. Future Cardia's most recent monthly burn rate was approximately $125k, which underscores the high costs associated with research and development, regulatory submissions, and initial market deployment. The company is in a comfortable cash position with $3.8 million in the bank as of May 2024.

Future Cardia's strategic partnerships with entities like Johnson & Johnson Innovation and Stanford's StartX accelerator program have been instrumental in advancing its technology and business development efforts. These collaborations not only provide validation of the company's approach but also offer access to resources and expertise that can accelerate its path to market.

The company is on track to achieve critical milestones, including patents, FDA market authorization, and insurance reimbursement. These achievements are essential for Future Cardia to establish a foothold in the competitive cardiac monitoring market. The company's Class II, 510k classification allows for a streamlined regulatory process, keeping it on schedule for FDA approval and commercialization in 2025.

Future Cardia's business model is based on selling devices and continuing monitoring services directly to healthcare providers. The company's low manufacturing costs ensure an 81% profit margin on its devices, which is a strong indicator of potential profitability once market penetration is achieved. The existing insurance reimbursement structures further support the financial viability of the company's offerings, making it easier for healthcare providers to adopt the technology without significant financial barriers.

Investing in Future Cardia involves several risks that potential investors should consider carefully.

One of the primary risks is the high regulatory burden of bringing a medical device to market. The company is currently in the pre-revenue stage and is working towards gaining FDA approval for its cardiac monitoring device, which is expected in 2025. Any delays or issues in the approval process could significantly impact Future Cardia’s timeline and financial projections.

Another risk to consider is the market adoption risk. Future Cardia’s product is early to market within the cardiac monitoring space, relying on advanced remote monitoring technology and artificial intelligence. While these features have the potential to offer significant benefits, there is a risk that the market may be slow to adopt this new technology due to unfamiliarity or resistance from healthcare providers accustomed to traditional monitoring methods.

The competitive landscape also presents a challenge. Although Future Cardia has developed a differentiated product, the healthcare and medical device markets are highly competitive with established players. To succeed, the company will need to demonstrate clear advantages over existing solutions and secure significant market share.

Future Cardia's innovative implantable cardiac monitor uses advanced remote monitoring technology and artificial intelligence for continuous and accurate cardiac data collection. This technology surpasses traditional wearable devices in terms of accuracy and patient compliance, making it a preferred option for healthcare providers. The ease of implantation and continuous data provision position Future Cardia advantageously in the market.

The company's collaborations with renowned entities like Johnson & Johnson Innovation and Stanford's StartX accelerator program validate Future Cardia's technology and business strategy. Additionally, significant investments from Sandhill Angels and Sixto Global Capital underscore the confidence in the company's potential.

Favorable investment terms and a strong financial outlook support the case for Future Cardia. With a pre-money valuation of $44.2 million and a share price of $3.00, investors have an attractive entry point to participate in the company's growth. Key growth drivers include trends in remote monitoring and AI integration in medical devices, with the goal of achieving FDA approval and commercialization by 2025. The company's low manufacturing costs and high profit margin of 81%, combined with substantial investor support, indicate a clear path to profitability and market success.

One primary concern for Future Cardia is the high regulatory burden of bringing its cardiac monitoring device to market. The company, still pre-revenue, relies on FDA approval expected in 2025. Any delays or complications could significantly impact its timeline and financial projections. Regulatory hurdles are unpredictable and can add substantial costs and delays to product development.

Market challenges also pose a potential barrier. The cardiac monitoring market, though sizable, is highly competitive with established players like Medtronic and Abbott Laboratories. These competitors have significant resources and strong brand recognition, making it difficult for Future Cardia to gain market share. To succeed, the company must demonstrate clear advantages and secure substantial market adoption.

Technological and market adoption risks could be significant growth inhibitors. Future Cardia's AI-driven technology may face resistance from healthcare providers used to traditional monitoring methods, as adopting new medical technologies can be slow and challenging.

Future Cardia is a healthcare company developing a cardiac monitoring device that utilizes remote monitoring technology and artificial intelligence. Their primary customers are healthcare providers, including hospitals and cardiology clinics, seeking advanced tools for continuous and accurate cardiac monitoring of patients.

The company offers Common Equity in its current fundraising round, with a pre-money valuation of $44.2 million and a share price of $3.00. Future Cardia achieved a strategic milestone: it has successfully implanted its devices in 39 patients in 2024. Strategic partnerships with Johnson & Johnson Innovation and Stanford's StartX accelerator program support the company's development and market entry efforts.

The device's ease of use and continuous data provision make it an attractive option for healthcare providers. The company's low manufacturing costs and 81% profit margin enhance its competitive positioning. Jaeson Bang successfully aligned dozens of salespersons ready to sell its product and a hundred physicians ready to adopt it. However, investing in Future Cardia carries unique risks, including the high regulatory burden of obtaining FDA approval, a high monthly burn rate, and market adoption challenges. The competitive landscape and the need for continuous fundraising are additional challenges.

Despite these risks, Future Cardia's focus on AI-driven monitoring and its potential to reduce hospitalizations and improve patient outcomes are significant advantages. Investors should weigh these factors to determine if Future Cardia aligns with their investment objectives and risk tolerance.

It’s rare to get the opportunity to invest in a medical device company in the midst of human trials on equity crowdfunding platforms. It’s even rarer to do so in a company led by such a dedicated founder, with dozens of salespeople ready to work to spread the product and a hundred physicians ready to adopt it. 

Future Cardia is this company, and Kingscrowd Capital is currently investing in the deal

As two of our investment committee members, Brian Belley and Léa Bouhelier-Gautreau already invested in one of Future Cardia’s previous rounds, they looked at the current deal with sharp eyes, knowing well the company, but also with high expectations.

And Future Cardia delivered. Jaeson Bang, founder and CEO, has a well-defined go-to-market strategy. He’s both optimistic and realistic on the potential of its company in its competitive landscape. Bang has been raising money multiple times on equity crowdfunding platforms, and he has been able to keep up with the milestones he set in 2023.

Future Cardia’s device can compete with the major legacy players thanks to its device capabilities, its network, and smart go-to-market strategy. It positions Future Cardia well for a future acquisition by one of these players, and give returns to investors.