Sydney Robinson, Vessl Prosthetics - Automatically Adjusting Prosthetic Socket | LSI USA '24

Sydney Robinson  0:00  
Sydney. Good morning, everybody. I'm Sydney, the CEO and co founder of vessel prosthetics. Since my training in Biomedical Engineering, I've been passionate about prosthetic innovation, so I co founded vessel to dedicate my life to developing solutions. Prosthetic clinicians or prosthetists tell us that poor socket fit. The fit between an amputees leg and their prosthetic leg is the biggest problem in prosthetics today, so my team of engineers and prosthetic leaders have developed a unique socket solution to empower these folks to lead healthier, more comfortable lives. We've all worn poor fitting shoes and gotten terrible blisters, but poor fitting sockets are even more dangerous for folks like Ed here that have a leg amputation, because blisters that they develop can lead to infection, hospitalization and even another amputation. This all happens because Ed's leg changes size throughout the day and in the long term, leading to chafing inside his rigid socket. Unfortunately, it is so painful and so frustrating that 16% of amputees permanently stop using their prosthesis. They would rather never walk again than wear their prosthesis. Thankfully, we've developed the isoform socket, the only socket that automatically adjusts as Ed's leg shrinks and swells with isoform our technology dynamically adjusts the size of the socket with each step without relying on flimsy sensors, heavy batteries or expensive motors. With isoform Ed avoids the pressure extremes that often lead to blisters, so he can walk around all day comfortably. Fewer clinic visits for poor socket fit also saves his prosthetist time and money. The global $13 billion market is expected to double in the next decade, driven by the rising incidence in diabetes, which is the leading cause of leg amputation. We are focused on the United States first, where there are 185,000 new amputations every year. Our serviceable obtainable market is nearly a billion dollars when accounting for amputees eligibility for their first prosthesis and the frequency with which they get a new one. We have protected our technology first by filing provisional last year, and this year, we converted that provisional patent to a PCT application, enabling us to expand into international markets simultaneously, we filed a US utility patent on a new version of our design to expand our claims and get a fast track application filed and completed in the United States. Isoforms, automatic, passive volume adjustment outperforms three competitor categories, manually adjustable sockets rely on constant manual operation, making them largely inaccessible, especially to folks with poor dexterity or sensation loss. Traditional sockets are static. They don't adjust at all. So an amputee will remove their leg, add a sock underneath and put their leg back on to make up for their shrinking leg size and bionic sockets are still too expensive and bulky to even be on the market. Prosthetists tell us that these solutions are not yet clinically relevant. Isoform improves amputees comfort and therefore wear time. But our patent also unlocks an additional reimbursement code, increasing revenue for prosthetists. Vessel operates in a business to business model with a global plan, but beginning in the United States, we will sell our socket to prosthetists, first through our own sales force and then through distributors. As we expand for manufacturing, we're looking to partner with central fabrication sites who are already well versed in creating custom prosthetic sockets and are already supporting multiple clinics which will help us scale our sales. Our price is $2,400 based on conversations we've had with prosthetists, 2019, Medicare data and isoforms added benefits. Then prosthetists are reimbursed through existing insurance codes. The socket payment is a one time fee, but amputees are eligible for a socket replacement on average every 2.3 years, which supports a recurring revenue model to go to market, we will leverage the Veterans Affairs 2% market share and uniquely strong funding model. We've already begun engaging with five VA healthcare centers on product validation through a cooperative research and development agreement. From there, we'll make a strong push to be adopted into the hangar distribution network, which represents almost a quarter of all clinics in the US, hangar and the VA have a long standing relationship. So as our relationship with the VA strengthens, our adoption into hangar becomes easier. We've also begun engaging with hanger prosthetists who can act as advocates and early adopters of our device. Together, these large distribution channels will give us the resources and foundation to sell to smaller networks and individual clinics along the way, we'll generate demand at conferences and trade shows to support our sales efforts. Since incorporating nearly two years ago, we've confirmed our status as an FDA class one medical device, which means no large regulatory hurdles needed to go to market, just standard business documentation. We've. Also filed two patents, as I mentioned, and most recently graduated from the TechStars physical health Fort Worth program in Texas, where we secured a clinical collaborator, Dr Gracie finko, and signed five letters of intent with prosthetists. Right now, we're focused on conducting user feedback with amputees who are trying on our device. And moving forward, I'm raising a pre seed round to conduct further clinical research and to launch our product in the United States, we are asking for $1 million which is actually 65% committed. And this will unlock 14 months of exciting new milestones, including revenue generation for the clinical studies. We're looking at testing isoform with about 20 amputees, which will take us around eight months to complete for the tests that we want to do. In these studies, we've spoken to different prosthetists who've told us what kind of data to collect so that that data is relevant to the decision making process. Large players in this space are using acquisitions as a growth strategy, seeking revenue generating companies with multiple product offerings. While we're open to acquisition, our focus remains on building a sustainable company, which we see doing through strategic partnerships with industry giants like OSER in similar markets, into bones, was acquired when generating just $9 million in revenue. And while a lot of these acquisitions and prosthetics are private, we do know that these companies are being acquired earlier and earlier based on an increasing number of sockets sold to an increasing number of strategic customers. We estimate our five year revenues to be $84 million our sales jump in mid 2025 as we begin scaling our sales team and start selling nationally to hanger simultaneously, our costs decrease as we offer kit versions of isoform for in house fabrication and begin collaborating with larger central fabricators for manufacturing. Raising a seed round lets us ramp up our sales efforts while designing new product offerings, which lets us break even just a year and a half post launch, we already have 23 clinics in our pipeline servicing 7500 below knee amputees based on comparable companies, and our focus on strategic partnerships, an exit is likely in 2027 and we have the team to make it happen. My background in Biomedical Engineering and my co founder's skills as a PhD clinical anatomist are further complemented by Trey Bull's successful business exits. We also have incredible advisors, including Ben, a certified prosthetist and biomaterials engineer, and Jim, whose new products have generated nearly a billion dollars in sales. Mine and Alexis, academic backgrounds have taught us end user design research and prototyping skills as we've both built research projects from the ground up, vessel is the only company solving poor socket fit with a revolutionary solution. Prosthetists and amputees tell us this is the biggest problem in prosthetics today, and that our solution is needed. Our technology adapts to the leg, thereby decreasing discomfort. So we're solving a multi billion dollar problem with a low risk device, join us in helping all amputees like Ed get reliably back on their feet. Thank you. You.