Millions of people around the world suffer from upper-limb paralysis.
In other words, they don’t have full use of their arms. Any number of conditions – including stroke, MS, ALS and injury – can cause this to happen.
Myomo has built an orthotic device that can help these patients gain some mobility back.
It’s a remarkable piece of technology. Myomo’s product works by picking up the signals a user’s brain sends to their muscles, then replicating the user’s intended motion with tiny electric motors.
Myomo is currently on its third generation of devices, with the latest models weighing in at just two to four pounds. So far, it’s sold more than 600 units.
Myomo’s products are based on “myoelectric” tech developed at MIT, which is licensed exclusively to the company.
Here’s a picture of one of the company’s orthotic devices.
Myomo’s orthotics are being utilized by patients with many different conditions.
I highly recommend watching this video on YouTube to see how it works. There’s also a nice collection of user testimonials and personal stories on Myomo’s site.
Watching videos of a company’s product in action (when possible) is a crucial part of the due diligence process, and in this company’s case, that’s especially true.
Myomo Taps Regulation A+ Equity Crowdfunding
Last month, Myomo launched an equity crowdfunding round on Banq.co.
The company is raising up to $15 million at a $35 million (pre-money) valuation.
Myomo has previously raised $20 million from Mountain Group Capital and others.
The company was spun out of MIT back in 2006 and has seen steady growth since.
Today, Myomo is working on expanding its network of distributors and getting the device approved by major insurance companies.
Here are some other key points I’ve discovered about Myomo:
- It’s currently the only upper-limb mobility device on the market.
- Insurance reimbursement ranges from $20,000 to $50,000 depending on the model.
- Each device is custom-molded to the patient.
- It’s the only such device that can bend the elbow and grasp objects.
- It has 70% gross margins.
Myomo is one of the most interesting Regulation A+ deals we’ve seen to date.
I think this company’s a perfect fit for equity crowdfunding. Think about it.
Put yourself in the shoes of someone with a paralyzed arm for a second. How interested are you in this company now? Pretty interested, I’d say. In fact, I bet there’s a good chance that you’d invest in it and try to get your insurance to pay for one of its products.
With a cost of $20K to $50K per orthotic, even a tiny percentage of investors doing so would be a huge win for Myomo.
If investors do become product users and vice versa, the effects for Myomo could be very powerful.
Imagine having these highly engaged investors as customers. They’d give tons of feedback, contribute ideas and hopefully even buy the product. And I bet they’d help Myomo find more doctors, who could then become distributors.
Equity crowdfunding has the potential to affect not just this one little niche, but every niche industry in similar ways.
It’s still early for equity crowdfunding, but the benefits of having customer/investors are getting clearer.
One More Thing
Myomo’s raise is also about to make history. In our next post from my partner Andy, he’ll tell you why.
Founder, Early Investing