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Bioself Technology

Platform:
Crowdcube
Stage:
Seed
Industry:
Consumer Products
Location:
UK - East
Date Rated:
07/07/17
Raise:
£250,000
Equity:
5.88%
Valuation (Pre Money):
£4,001,701
Industry: Consumer Products
Location: UK - East
Platform: Crowdcube
£250,000 Seed
Valuation: £4,251,701
Date Rated: 04/07/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Bioself Technology is developing the Sensate, a device that combines Vagus Nerve stimulation with biofeedback techniques to aid relaxation. These funds will be used to complete development and launch on Kickstarter.

Financial Overview

Oct-21
Date (y/e) Oct-17 Oct-18 Oct-19 Oct-20 Oct-21
Sales Oct-17£805,736 Oct-18£4,118,776 Oct-19£11,186,336 Oct-20£24,384,336 Oct-21£40,090,336
Gross Profit Oct-17£505,736 Oct-18£2,668,776 Oct-19£7,016,836 Oct-20£15,723,336 Oct-21£26,166,586
GP as % sales Oct-1763% Oct-1865% Oct-1963% Oct-2064% Oct-2165%
Overheads Oct-17£426,424 Oct-18£1,225,276 Oct-19£2,259,550 Oct-20£3,004,780 Oct-21£3,400,560
Operating Profit Oct-17£79,312 Oct-18£1,340,706 Oct-19£4,600,760 Oct-20£12,348,830 Oct-21£21,855,500
OP as % sales Oct-1710% Oct-1833% Oct-1941% Oct-2051% Oct-2155%
Closing Cash Oct-17£1,174,919 Oct-18£1,468,791 Oct-19£3,522,658 Oct-20£10,107,229 £23,294,075

Note: This financial information has been sourced from the company on 30/06/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
57%
SKILLS:
EXPERIENCE:
COMMITMENT:
The CTO's product development company brings a wealth of technical skills to the table, and the CEO has a long career in alternative therapies. The team lacks a dedicated marketer though.
While this may be the CEO's first attempt at a hardware company his co-founder is appropriately experienced on that front. Both have founded companies before and they are well advised.
Both Founders have other commitments, though the CTO's is with the company developing the Sensate device. Management salaries for the next year comprise a high proportion of this raise.
68%
MARKET:
PRODUCT:
COMPETITION:
The market for wellness aides is large and growing, as is that for wearable devices, so the intersection is a good place to be. But no comparable devices have yet broken through to the mass market.
There have been no formal clinical trials yet but early user feedback is good, though development work is required to ready the consumer product for launch, and this appears to be delayed.
The company has applied for patents to protect key product elements and it appears unique in its use of infrasound to stimulate the Vagus nerve combined with additional feedback mechanisms.
35%
PROFITABILITY:
CASHFLOW:
RETURNS:
Bioself is relying on Kickstarter to generate forward sales of £800k by November, which given the current product delays and limited marketing spend seems very optimistic.
Based on the projections there is ample headroom thanks to a £1m round in October. Further product delays could push this back though with consequent financial strain.
Even based on the very optimistic growth projections, give the high entry valuation an exit would need to be at a high multiple relative to other consumer goods companies to give investors high returns.


Conclusion

Sensate's non-clinical triallists appear to be very happy with the devices. But even if the expected demand for the device materialises, meeting and supporting it will be a considerable challenge, and as yet we have little visibility of the subscription product that will be the key driver of recurring sales and a major justification for the high current and expected valuation.

There is another major round of investment due imminently at an expected valuation of £12-15m, which represents a 3-4x increase in just a few months. This may not be realistic but investors should certainly consider obtaining pre-emption rights, which unfortunately require a minimum investment of £10,000.

Related Links

Crowdcube Pitch

www.bioself.technology

 

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