Oracle Health

Oracle Health

Early Stage

Tiny implantable cardiac device using telemedicine and AI

Tiny implantable cardiac device using telemedicine and AI

Overview

Raised this Round: Raised: $3,289,558

Total Commitments ($USD)

Platform

Republic

Start Date

01/12/2021

Close Date

08/29/2021

Min. Goal
$100
Max. Goal
$8,000,000
Min. Investment

$100

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegA+    Open SEC Filing

Price Per Share

$2.00

Pre-Money Valuation

$20,000,000

Year Founded

2019

Industry

Healthcare & Pharmaceuticals

Tech Sector

Medtech

Distribution Model

B2B2C

Margin

Medium

Capital Intensity

High

Location

Safety Harbor, Florida

Business Type

Growth

Oracle Health, with a valuation of $20 million, is raising funds on Republic through Reg A+ crowdfunding. It is a medical technology startup manufacturing a heart failure cardiac monitor. Oracle Health’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 done pre-clinical testing with 25 heart failure patients. Jae Bang founded Oracle Health in 2019. The current crowdfunding campaign has a maximum target of $8 million. The campaign proceeds will be used for research and development, FDA submissions, sales and marketing, patent protection, product testing, and working capital.

Balance Sheet

Cash and Cash Equivalents

$291,682

Investment Securities

$0

Accounts and Notes Receivable

$34,156

Property, Plant and Equipment (PP&E)

$0

Total Assets

$325,838

Accounts Payable & Accrued Liabilities

$4,590

Long Term Debt

$505,404

Total Liabilities

$509,994

Total Stockholders' Equity

$-184,156

Total Liabilities and Equity

$325,838

Statement of Comprehensive Income Information

Total Revenues

$0

Costs & Expenses Applicable to Rev

$0

Depreciation and Amortization

$0

Net Income

$-370,847

Earnings Per Share - Basic

$-0.04

Earnings Per Share - Diluted

$-0.04

Auditor: Jason M. Tyra, CPA, PLLC
Financials as of: 01/12/2021
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Future Cardia 10/20/2024 Wefunder $44,206,629 $320,423 Equity - Common Active RegCF
Future Cardia 06/02/2024 StartEngine $40,112,855 $3,498,881 Equity - Common Funded RegCF
Future Cardia 06/19/2022 StartEngine $20,000,000 $3,114,169 Equity - Common Funded RegA+
Oracle Health 08/28/2021 Republic $20,000,000 $3,289,558 Equity - Common Funded RegA+
Oracle Health 03/22/2020 Microventures $5,000,000 $275,104 SAFE Funded RegCF
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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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Synopsis

Amid the ongoing COVID-19 pandemic, it can be easy to forget that the leading cause of death in America is not viral contagion but heart disease. Heart disease accounts for nearly 660,000 deaths per year. That has changed in the short-term as statisticians catch up with the grim reality of rising pandemic death rates, but after it ends, the treatment of heart problems will likely once again be the priority.

Heart disease can be both chronic and immediate. Americans are probably most familiar with coronary heart disease, a buildup of plaque on the arteries that can lead to heart attacks as those arteries become constricted. Both coronary heart disease and heart attacks — among other conditions — can lead to heart failure. About 6.2 million Americans suffer from heart failure, and it was mentioned on 379,800 death certificates in 2018. Part of the challenge is getting heart failure patients to the hospital in time to save their lives. Wearable technology (wearables) and more invasive devices are being employed to monitor heart failure patients in hopes that ailing patients can be rushed to the hospital that much faster.

Oracle Health has developed a patent-pending, subdermal cardiac monitor. Oracle’s device is a small but complex sensor that can be inserted above the heart in a simple, two-minute office procedure. The sensor monitors heart and lung sounds and has an electrocardiogram (ECG) to keep track of heart rhythms. Best of all, the patient doesn’t need to engage in complex self-monitoring. Data is securely transmitted to a cell phone, and the phone transmits the data to an AI cloud.

Oracle’s device is halfway to FDA approval, and it is ahead of its limited competition in this space. The hope is that eventually it can reach every heart failure patient in America to keep them healthy as long as possible. In the tech’s current stage of human testing and clinical trials, Oracle has no hard numbers on how effective the product is. However, in a nod to the company’s progress, Johnson & Johnson has included Oracle as one of several startups on its JLabs collaborative team.

Oracle Health’s current Republic raise has been rated a Deal to Watch by the KingsCrowd investment team.

Next Section: Price

Price

Oracle Health is selling common stock at a $20 million valuation, a steep fourfold increase over its valuation in a previous raise. Given its pre-revenue stage, this increase in valuation is presumably due to its early traction in gaining FDA approval. The valuation is not unreasonable for a medical technology company but isn’t a strong point in favor of investing at this stage either.

Next Section: Market

Market

Heart failure is an exceedingly common condition, especially in the US. As mentioned above, 6.2 million Americans are heart failure patients. The global cardiac monitoring and cardiac rhythm management market — which includes pacemakers and automated external defibrillators (AEDs) — was valued at $29.0 billion in 2019. It is projected to grow at a 6.5% CAGR through 2027. The US market is a little over one-sixth of that size (around $5 billion). Oracle Health’s leading position in development and reimbursement plans leaves the company well-situated to secure a sizable portion of the US market.

Next Section: Team

Team

Oracle touts a team of industry experts, starting with founder and CEO Jaeson Bang. Bang holds an MBA from Northwestern University, and he has spent nearly two decades at the intersection of medicine and business, with an emphasis on the human heart. Most recently, he worked with EBR Systems Inc., a Silicon Valley startup working on a pacemaker. His experience spans global projects, but perhaps his most notable experience is with Medtronic, a leader in medical technology. He started there as a senior clinical specialist but transitioned to sales down the line, an apt line of development for the head of Oracle Health.

Doctor Dimitrios Georgakopoulos and Randy Armstrong serve as the director of science and director of technology, respectively. Georgakopoulos holds a PhD from the Johns Hopkins School of Medicine. He brings two decades of experience across the medical field, including various roles at CVRx — a medical technology firm dedicated to treating heart failure — and a two-and-a-half year stint as chief scientific officer of CHF Solutions, formerly known as Sunshine Heart, Inc. Georgakopoulos is also the founder and CSO of the small startup Barologics Inc., of which little public information exists. Randy Armstrong is a licensed professional engineer who has worked with companies developing medical technology (such as defibrillators and pacemakers) as far back as 1989. Armstrong is also currently CTO at Velentium, a Texas medical device company.

Doctor Dan Burkhoff serves as one of several medical advisors. Like Georgakopoulos, Burkhoff holds a PhD from the Johns Hopkins University School of Medicine and has nearly three decades of experience serving as medical director for various entities. He transitioned to working with startups in 2012 and currently serves as the vice president of medical science at HeartWare Inc. Doctor Kevin Heist — another medical advisor — holds a PhD from the Stanford University School of Medicine and is currently an associate professor of medicine at the prestigious Harvard Medical School. The Oracle Health team is further rounded out by a number of other medical advisors and data scientists.

Overall, the Oracle Health team comprises many medical industry experts. There is also past entrepreneurial and leadership experience in the team, which bodes well for Oracle’s future success.

Next Section: Differentiators

Differentiators

When it comes to technology, differentiation of product is everything, and for a singularly-focused company like Oracle, this is especially true. Fortunately, its product is highly differentiated. The device includes multiple sensors to monitor heart and lung function and can be inserted through a simple two-minute procedure. The combination of a comprehensive monitoring package with a simple and unobtrusive installation makes for a compelling product. Furthermore, the integration of artificial intelligence analysis with its existing application is quite useful for doctors.

Patents are pending, which is important at this stage. The product is about halfway through a 6-to-12 month FDA approval process under a Class II 510K device classification. Oracle has a number of competitors, including Abbott, VitalConnect, and Sensible Medical, but such devices do not offer the same comprehensive advantages as Oracle’s. At this time, Oracle Health has successfully created a product that holds a strong competitive advantage while also answering a clear and present market need.

Next Section: Performance

Performance

Oracle is pre-revenue, but the measures it has taken to secure future revenue appear promising. Once human trials and clinical testing of the product are complete, investors will be able to more accurately gauge product viability and potential revenues through such metrics.

However, its costs thus far are significant. As of 2020 Q2, the company had an accumulated deficit of $460,967. These expenses are likely to continue for at least the next couple of years as development and planning continue.

Next Section: Bearish Outlook

Bearish Outlook

As an early-stage medical startup, Oracle faces the daunting combination of several years with high capital burn and no-to-low revenue. While there is little doubt that patients — especially in the US — will continue to be in need of cost-effective cardiac monitoring solutions, investors should remember that the product is still in development. Therefore, nothing about its effectiveness has been fully proven. If results in clinical trials demonstrate less product quality than has been advertised or Oracle fails to build a sustainable marketing initiative, it will likely struggle to gain ground in a market that, while lacking in many notable competitors, is still fierce. 

Next Section: Bullish Outlook

Bullish Outlook

As the United States grows ever grayer and aging populations grow more comfortable with technology-based healthcare, Oracle’s product is likely to appeal to doctors and patients alike. Combining what may be a shortened development process given the expertise at hand and the assistance of medical companies through Johnson & Johnson, Oracle could very well secure a sizable portion of America’s 6.2 million heart failure patients. If Oracle can sell even a few thousand devices, it could begin seeing returns in the millions. Medical technology often has high margins on its products, which is a boon for early investors. Furthermore, Oracle has done much of the early work to distinguish its products from competitors’ and to build defensibility through pending patents. Once FDA approval is secured, the company is well-positioned to start carving out a substantial market niche for itself.

Next Section: Executive Summary

Executive Summary

Oracle Health is a medical device startup developing a multi-sensor cardiac monitoring implant device. Its product, which is undergoing human testing, keeps track of heart and lung activity to prevent expensive and dangerous hospital visits. The tech is differentiated from its competitors’ and should provide a high-quality monitoring solution that uses AI analysis to reduce the burden on patients and doctors.

With an experienced team at the head, Oracle is rocketing through the approval process. Its valuation has increased steeply from a raise last year but remains reasonable for a medical technology company. For these reasons, Oracle Health has been rated a Deal to Watch.

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com.

Analysis written by Benjamin Potts.

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Oracle Health on Republic 2021
Platform: Republic
Security Type: Equity - Common
Valuation: $20,000,000
Price per Share: $2.00

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