!e 2025 target of $47M of revenue and $31Mof EBITDA is 90% recurring, and customer’s order volumes are projected based on their known operating room volumes. Given the technical problems that Magvation solves for customers with active operating rooms,
management believes there are high switching costs in its products and services and as result projects recurring revenues.
With the advantage of Jason Howe as CEO and head of business development, the Company hasrelationships with the top 25 hospital systems, representing an initial $3-5M of Try&Buy contract revenue for the initial product release. In addition, the Company will
continue to leverage Jason’s relationships in the industry, with over 50 hospital systems in the pipeline, targeting $117M in year 3 sales given his experience in this sector with similar products.
Many of the principals of Magvation have more than 20 years experience, individually, in high growth sales directly to hospitals. Jason
Howe, CEO, was one of the founding partners of sponge tracking system where he led the sales and services division for five years. He
has previously developed a sales team specifically for hospital system sales that generated over $100M annually, resulting in over $235M of enterprise value upon exit. Jason is well known for operational excellence in the customer base we seek to target.
For surgeons, scrub techs and ultimately hospitals who are frustrated by ongoing incidents and injuries from errors counting sharps, and who are exposed to millions in unwanted legal, insurance and operational costs, HAYSTACK is in a new product category called the Surgical Safety System. Unlike red plastic needle count boxes, whiteboards and other partial solutions that create added distractions, lower operational efficiency, trigger injuries and invite liability, Haystack delivers true surgical safety.
Haystack is a part of the surgical theatre. Using computer vision, the machine learning algorithms were trained to recognize any on of 15,000 surgical inventory items in 64 thousand different position
permutations. Displaying count results automatically, logged into a on-site blockchain database.
BUSINESS MODEL: HOW WE MAKE MONEY
Management believes there is an opportunity to create billion dollar asset
within four years by capturing revenue from 298 hospitals and 239
ambulatory surgery centers without additional services or up-front costs for buyers, monetizing with a per-operation payment of $499 per. The first-
mover advantage coupled with 5-years of development, patenting, and building on previous work with sponge counting coupled with in-depth
practical surgical and scrub technician insight, have resulted in a highly desirable surgical safety system that’s easy to use and will add layers of stickiness while solving additional OR distractions.
Better systems are needed now: Staff safety and
retention is a #1 priority for hospitals. In addition, there is a push for lowering costs while at the same time,
raising patient safety outcomes.
The Haystack surgical safety system delivers Immediate “stickiness” in the operating room: While Surgeons and OR teams urgently need needle counting, there are other sources of distraction, to include sponge counting, answering phone calls, texting and playing their music during lengthy procedures. Haystack solves for the top 5 critical distractions.
Exit Assumptions: Stryker Medtronic and Cardinal are among the large MedTech suppliers motivated to capture the emerging cobot safety revenue streams to eliminate preventable surgical mistakes.
This manual count been the standard of practice for almost 20 years. But it cannot continue as-is because the operating room has changed such that manual counts pose of the dangers to patients, physicians, scrub techs and the hospital itself.
Needle counter boxes often require the surgical team to recount multiple needles adding time and complexity to the procedure. Paper, whiteboards, handwriting
and shift-change confusion contribute to the problem.
When counts go wrong, RSI incidents are easy to prove, exposing hospitals to compensation costs of up to $3.7M per incident.
SURGERIES IN US PER YEAR
SURGICAL HOSPITALS
AMBULATORY SURGERY CENTERS
After five years of development, trial testing in live environments and solving technical, regulatory and manufacturing issues, Magvation has created a $3-5M go-to-market pipeline and put itself on track to create a potential 12X return for investors based on the projected exit valuation.
$750M Projected exit event in 2027: Based on our Proforma, a five-year MedTech Market CAGR of 33.7% and the disruptive nature of the system that threatens to capture the revenue of large players.
12X target return on investment: Based on 80% gross margin and 5x multiple EBITA of 2027 performance, compared to pre-money valuation of $50M.
We systematically improve operating room outcomes by automating needle and sharps counts, and reduce the number of processes that surgeons and scrub techs are responsible for, putting the focus of surgical staff exactly where it needs to be:
on patient welfare, and successful surgical outcomes.
Join me in our mission to give hospitals the ability to keep their needle count errors to zero, lower their overall surgical costs and reduce time-in- surgery by as much as 15% for high risk patients including those in cardiovascular procedures. – Jason.
*DEFINITION OF ACCREDITED INVESTOR
You qualify as an Accredited Investor if you meet any of the following criteria: a) You earn over $200,000 in annual income, b) You, together with your spouse, earn over $300,000 in joint annual income, c) You have a net worth, exceeding $1,000,000 (excluding the value of your primary residence), individually or together with your spouse.
DISCLAIMER
The material on this website is for the general information of our clients and visitors. This website does not constitute an offer to sell or a solicitation of an offer to buy or sell any security or investment product. It may not be relied upon in connection with any offer or sale of securities. Nothing on this website recommends that you purchase, sell or hold any security or pursue any investment style or strategy. Nothing on this website is intended to be, and you should not consider anything on the website to be investment, accounting, tax, or legal advice. Investments may only be made pursuant to a Private Placement Memorandum of Incrementum Equity.
Copyright @2023 All Rights Reserved