Atom Limbs

Atom Limbs

Growth Stage

Revolutionary prosthetics to end physical disability

Revolutionary prosthetics to end physical disability

Overview

Raised to Date: Raised: $1,718,839

Total Commitments ($USD)

Platform

Wefunder

Start Date

10/08/2023

Close Date

04/11/2024

Min. Goal
$50,000
Max. Goal
$5,000,000
Min. Investment

$250

Security Type

SAFE

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$60,000,000

Valuation Cap

$65,000,000

Discount

0%

Rolling Commitments ($USD)

Status
Funded
Reporting Date

04/23/2024

Days Remaining
Funded
% of Min. Goal
Funded
% of Max. Goal
Funded
Likelihood of Max
Funded
Avg. Daily Raise

$9,291

# of Investors

1,425

Momentum
Funded
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Year Founded

2019

Industry

Healthcare & Pharmaceuticals

Tech Sector

HealthTech

Distribution Model

B2C

Margin

Medium

Capital Intensity

High

Location

San Francisco, California

Business Type

Growth

Atom Limbs, with a valuation of $65 million, is raising funds on Wefunder. The company is creating the world’s first mind-controlled bionic arm. Atom Limbs’ arm has full finger dexterity, 200 sensors, and curls 45lbs. It is powered by artificial intelligence and will be sold to amputees and robotic organizations dealing with agriculture, factory assembly, and hazardous environments. Atom Limbs currently has a pipeline of over $180 million with 9,000 qualified buyers. Tyler Hayes, Doug Satzger, and Eric Monsef founded Atom Limbs in April 2019. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $5 million. The campaign proceeds will be used for hiring, materials, 3D prints, prototyping, equipment, travel, and operating costs.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-3,718,607

$-1,941,209

Summary Balance Sheet

FY 2022 FY 2021

Cash

$1,611,770

$1,453,448

Accounts Receivable

$0

$0

Total Assets

$1,990,558

$1,506,360

Short-Term Debt

$337,701

$195,454

Long-Term Debt

$167,671

$0

Total Liabilities

$505,372

$195,454

Financials as of: 10/08/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Atom Limbs 04/10/2024 Wefunder $65,000,000 $1,718,839 SAFE Funded RegCF
Atom Limbs 04/27/2022 Wefunder $40,000,000 $5,000,000 SAFE Funded RegCF
Atom Limbs 02/02/2021 Wefunder $10,000,000 $1,070,000 SAFE Funded RegCF
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Price per Share History

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

Valuation History

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.

Employee History

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Analyst Report

Synopsis

Amputation is a major health issue worldwide, affecting millions of people. In the United States alone, nearly 2 million people are living with limb loss, and the majority of these are due to vascular disease. For these individuals, prosthetic limbs can significantly improve their quality of life. However, traditional prosthetics have significant limitations, including a lack of fine motor control and sensory feedback.

Atom Limbs aims to revolutionize the prosthetics industry with its mind-controlled bionic arm. This advanced prosthetic limb features full finger dexterity and has 200 sensors, enabling control and functionality that surpass traditional prosthetics. The Atom Limbs arm can also curl up to 45 lbs, providing users with significant strength and dexterity. Furthermore, the arm is powered by artificial intelligence, potentially allowing for more intuitive control and better integration with the user's body.

Atom Limbs plans to sell its bionic arm to amputees and robotic organizations in various sectors, including agriculture, factory assembly, and hazardous environments. The company has generated significant interest, with a pipeline of over $180 million and 9,000 qualified buyers. This suggests a strong market demand for advanced prosthetic solutions like the Atom Limbs arm, called Atom Touch.

Next Section: Price

Price

Atom Limbs is raising funds through a SAFE with a valuation cap of $65 million. However, this valuation seems too high for the company's current traction stage. Atom Limbs has not generated any revenue yet and is not planning to launch its prosthetic arm until July 2024. This delayed timeline suggests that the company is executing slower than initially planned. Furthermore, Atom Limbs' claims about the revolutionary nature of its arm may be somewhat exaggerated, as other companies like BrainRobotics and Unlimited Tomorrow also produce products that incorporate mind control and a sense of touch.

Although Atom Limbs has the potential to achieve significant value, there is currently no proof to justify such a high valuation. Additionally, the company's progress is too small to justify a jump in valuation from $40 million to $65 million. This is especially concerning given the industry's current trend of down rounds.

Investors should be cautious when considering Atom Limbs' valuation and consider the company's lack of revenue and delayed product launch. While the concept of a mind-controlled bionic arm is promising, assessing the company's ability to execute its plans and generate meaningful revenue is important before justifying a high valuation.

Next Section: Market

Market

Atom Limbs operates in the US Prosthetics & Orthotics market, a sector valued at approximately $2.59 billion in the United States. The market is characterized by a small growth rate of 3.8%, driven largely by an increasing incidence of sports injuries, road accidents, diabetes-related amputations, and the prevalence of osteosarcoma. 

Technological advancements in orthotics & prosthetics, such as 3D printing and artificial intelligence, are expected to boost the market growth. As Atom Limbs’ bionic arm incorporates these innovations, it is well-positioned to capitalize on this trend. However, it's worth noting that upper extremity prosthetics, like the one developed by Atom Limbs, represent only 25% of the market.

Atom Limbs' products will require FDA approval before commercializing it. This could pose a significant barrier to market entry, as the approval process is often rigorous and time-consuming. Nevertheless, high market acceptance and a slightly competitive landscape bode well for Atom Limbs.

In summary, Atom Limbs operates in a market with few direct competitors. Its innovative mind-controlled bionic arm has the potential to disrupt the market, provided it can navigate the regulatory landscape successfully.

Next Section: Team

Team

A strong and experienced team of co-founders leads atom Limbs. Tyler Hayes, the CEO, has startup experience with a background in COO roles at Bebo (acquired by Amazon) and YC-backed startup Disqus (acquired by Zeta). His expertise in scaling companies and securing funding from top VCs positions Atom Limbs for success.

As the Chief Design Officer, Doug Satzger brings an impressive 20 years of relevant industry experience to Atom Limbs. Satzger has a history of working with renowned companies such as Apple, Intel, Palm, and IDEO. He has led teams responsible for groundbreaking products like the iMac and iPhone under the leadership of Steve Jobs. Satzger's industrial design expertise and experience managing the entire portfolio of Apple's iconic products make him a valuable asset to Atom Limbs.

Eric Monsef, the Co-founder and CTO of Atom Limbs, has 25 years of relevant industry experience. He has previously worked with Apple, HP, and Glydways, where he created Apple's Core Hardware Team of Deep Engineers and led architecture design on the original MacBook and MacBook Pros. Monsef's hardware engineering expertise and contributions to patented technologies further strengthen Atom Limbs' technical capabilities.

While the co-founders of Atom Limbs have a strong background in hardware and scaling companies, they lack direct experience in the healthcare industry. However, Jayant Menon, MD, the medical director, complemented the team. Menon, a trauma neurosurgeon and clinical associate professor at Stanford, brings valuable medical expertise to the team.

Overall, the Atom Limbs team is well-rounded and experienced in their respective fields. With their combined expertise in hardware, design, and medical knowledge, they are well-positioned to develop and commercialize the world's first mind-controlled bionic arm. Their innovative product offering and strong market potential in the US Prosthetics & Orthotics market make Atom Limbs a promising player in the healthcare and pharmaceutical industry. 

Next Section: Differentiation

Differentiation

Atom Limbs is set to revolutionize the field of prosthetics with its mind-controlled bionic arm, Atom Touch. Leveraging machine learning and artificial intelligence, Atom Limbs has developed a bionic arm that offers an intuitive experience with minimal cognitive effort. Weighing under 10 lbs, the Atom Touch provides near-parity with the human arm, offering a wide range of motion and all degrees of freedom. It is also exceptionally responsive, nearly as fast as a human arm.

Atom Limbs faces competition from several direct competitors in the space, including BrainRobotics, Unlimited Tomorrow, Arm Dynamics, and Mobius Bionics. BrainRobotics, for example, utilizes advanced brain-machine interface technology to deliver a prosthetic hand with enhanced capability, usability, and affordability. BrainRobotics is a serious and close competitor for the company. BrainRobotics is also expecting to launch its first product soon. Mobius Bionics specializes in the development of the LUKE Arms, a bionic arm that can be controlled by a variety of inputs and offers multiple grip patterns - but isn't controlled by the brain.

Atom Limbs' differentiation lies in its mind-controlled technology, full finger dexterity, and advanced sensor capabilities. With 200 sensors and the ability to curl 45 lbs, the Atom Touch stands out as a highly advanced and versatile prosthetic option. Additionally, Atom Limbs has established partnerships and a strong pipeline of potential buyers, positioning the company for future growth in the prosthetics market. in the case of Atom Limbs, the competition will surely help the market and insurance companies become more favorable to bionic arms. While competitors provide similar technology, the early stage of the category still leaves room for several companies to grow and succeed.

Next Section: Performance

Performance

Atom Limbs has shown promising traction and significant interest in its innovative, mind-controlled bionic arm. The company has received great reviews from over 30 user-testers, demonstrating the positive reception of its product. Atom Limbs already has over $180 million pipeline with more than 9,000 qualified buyers, indicating strong demand for its bionic arm. The company's waitlist is consistently growing, with a quarterly increase of approximately 15%. Notably, Atom Limbs has received over 1,000 inquiries for leg products despite not announcing a leg product yet, highlighting the market's interest and demand.

Atom Limbs creates a mind-controlled and advanced bionic arm, offering full finger dexterity, 200 sensors, and the ability to curl 45 lbs. The arm is powered by artificial intelligence and targets amputees and non-medical robotic organizations in various industries such as agriculture, factory assembly, and hazardous environments. The company plans to transition from the clinical to the commercial stage and will ship its product to the market in 2024.

However, during its previous raise in 2021, the company planned on commercializing its product in 2023. Given the current delay, investors can wonder whether the company can pass FDA approval and start selling in 2024.

Financially, Atom Limbs has a high monthly burn rate of $200,000 and a very low runway. The runway is normal for such a high-tech product, but investors must know that the company heavily relies on external funding. At the beginning of its Wefunder raise, Atom Limbs only had $100,000 left. While the company seems to be raising enough money to reach commercialization in 2024, investors can wonder why Atom Limbs only launched its crowdfunding round when it was about to run out of cash.

Next Section: Risk

Risk

Investing in Atom Limbs carries a significant level of risk due to various factors. Although the company's prosthetic arm technology has been developed and verified by Johns Hopkins, Atom Limbs still faces challenges in bringing the limb to market and generating revenue. This poses product, market, and time risks, as there is no guarantee that the product will sell well and achieve widespread adoption. Delayed market acceptance or slow sales could hinder the company's progress and distance it from its goals.

Another risk factor is the valuation of Atom Limbs. The company appears to be overvalued for its current stage of traction, which raises concerns about the return on investment for potential investors.

Additionally, the price of Atom Limbs' future products may be too high for many potential customers, limiting their market reach and potentially impacting sales potential.

Financially, Atom Limbs burned $3.7 million the previous year, indicating a high financial risk. The company will require ongoing funding to support its operations as it continues to develop and scale its products.

Atom Limbs operates in a moderately competitive landscape, with direct competitors like BrainRobotics, Unlimited Tomorrow, and Arm Dynamics. The presence of competitors in the market could challenge Atom Limbs to gain market share and establish itself as a leader.

Furthermore, Atom Limbs is in the growth stage, which typically comes with higher risks than established companies. The need for time and resources to scale production and sales, as well as the high capital intensity level, adds to the risk profile of the investment.

Investing in Atom Limbs entails notable risks, including market acceptance, product viability, financial sustainability, and competition. Potential investors should carefully evaluate these risks before making an investment decision.

Next Section: Bullish Outlook

Bullish Outlook

Atom Limbs is at the forefront of revolutionizing the field of prosthetics with its groundbreaking mind-controlled bionic arm. With full finger dexterity, 200 sensors, and the ability to curl 45 lbs, Atom Limbs' arm represents a significant advancement in prosthetic technology. Powered by artificial intelligence, this innovative solution has vast applications for amputees and various industries dealing with hazardous environments, factory assembly, agriculture, and more.

The company has already established a strong pipeline of over $180 million and has identified 9,000 qualified buyers, indicating high interest and demand for its mind-controlled bionic arm. This significant market potential positions Atom Limbs to capture a substantial share of the US Prosthetics & Orthotics market.

Atom Limbs' strategic partnerships with non-medical robotic organizations further enhance its growth prospects. By expanding its target market beyond amputees, the company can tap into additional revenue streams and establish itself as a leader in robotics.

Furthermore, Atom Limbs has attracted notable venture capital investors, including Moai Capital and J4 Ventures, which speaks to the confidence in the company's vision and potential. Additionally, high barriers to entry provide Atom Limbs with a competitive advantage, securing its position as a pioneer in mind-controlled prosthetics.

Next Section: Bearish Outlook

Bearish Outlook

Atom Limbs operates in a competitive market with several direct competitors, including BrainRobotics, Unlimited Tomorrow, and Arm Dynamics. While Atom Limbs claims to have a revolutionary mind-controlled bionic arm with advanced features, it faces significant competition from players with similar technologies in the prosthetics and orthotics industry. BrianRobotics is currently trying to launch its own product on the market - but the company is allegedly experiencing delays.

Furthermore, Atom Limbs is in the pre-revenue stage and has yet to generate sales or demonstrate significant progress in commercializing its product. Despite claiming to have a pipeline of over $180 million and 9,000 qualified buyers, the company has not been able to convert these prospects into actual customers yet. Two years ago, the company claimed to be able to commercialize its products by 2023. Atom Limbs has not been able to execute fast enough to reach this milestone, and the company now hopes to launch its product in July 2024.

In addition, Atom Limbs has a high monthly burn rate of $200,000 based on its latest numbers on Wefunder, which indicates that the company is spending a significant amount of cash without generating any revenue. This raises questions about the company's financial sustainability and ability to continue operating without significant external funding.

Next Section: Executive Summary

Executive Summary

Atom Limbs is a pioneering company developing one of the world's first mind-controlled bionic arms. This revolutionary product, equipped with full finger dexterity, 200 sensors, and the ability to curl 45 lbs, is designed to enhance the lives of amputees and people who have suffered limb loss. The company also explores applications in non-medical robotic organizations, including agriculture, deep-sea operations, hazardous environments, and factory assembly.

Despite being in the pre-revenue stage, Atom Limbs has a promising pipeline worth over $180 million with 9,000 qualified buyers. The company has also attracted notable investors, including Trevor Blackwell and Anthony Pompliano, and has raised over $8.4 million in prior funding rounds. This financial backing underscores the potential of Atom Limbs' innovative product's potential impact on the prosthetics and orthotics market.

However, Atom Limbs operates in a competitive landscape, with companies like BrainRobotics, Unlimited Tomorrow, Arm Dynamics, and Mobius Bionics also making strides in the field. Atom Limbs must accelerate its development and commercialization efforts to maintain its competitive edge.

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Atom Limbs on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $65,000,000

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