Setting the Scene
One in five people suffer from muscle pain; however, many healthcare systems overlook these cases, primarily focusing on emergency care.
There are a few reasons for this:
Treatments disregard the individualized nature of muscle pain, leading to less effective care.
Physical therapy, a key component in managing such pain, often requires time-consuming, in-person sessions, lacking convenience and immediacy.
This week’s company offers an innovative approach to muscle pain care, combining AI technology with personalized treatment options.
In a Sentence
Neatsy is an AI-powered app that transforms your smartphone into a tool for muscle pain diagnosis, recovery tracking, and telehealth enablement.
Pain diagnosis: Utilizes the iPhone camera to generate 3D scans that assess the user’s posture and musculoskeletal conditions.
Recovery: Analyzes possible health risks and provides personalized solutions for symptoms by recommending orthotics, shoes, workouts, and more.
Telehealth enablement: Allows orthopedic surgeons and PTs to monitor patients, functioning as a supportive tool for doctors.
Bulleted version: In the same way a cashier scans an item’s barcode to gain insight into product details, Neatsy’s technology scans a user’s body to detect health risks and provide treatment options. 🏷️
The Basics
Industry: Healthtech
Headquarters: Boston
Year founded: 2019
Employee count: 3 FTEs and 6 part time engineers
Investors: Techstars, Purdue Innovates, Open Venture Capital, Flyer One Ventures, Cabra VC
Amount raised: $1.6M in pre-seed funding
Currently raising: $2M seed round
Business model: B2C ($30/mo subscription) and B2B SaaS with health plans ($35/virtual check in)
Early traction: 150k downloads, 40k monthly active users, $400k ARR with 20% MoM growth
IN PARTNERSHIP WITH
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For Accel, NEA, Craft and hundreds of VCs using Harmonic AI, that world is a reality.
Due Diligence
WHAT WE LIKE
📈 Market Opportunity: With 1.7 billion people affected by musculoskeletal pain, representing a $380 billion healthcare cost in the US, Neatsy taps into a significant need for effective pain management.
🙆🏼♀️ Disrupting physical therapy: Neatsy offers a solution to the time-consuming and expensive nature of traditional physical therapy, providing an efficient alternative.
🫵 Personalized: Leveraging AI, Neatsy delivers personalized treatment plans, adapting to each user's unique condition and progress.
Neatsy was successfully granted a patent for their technology to help build defensibility around this personalized approach.
POTENTIAL RISKS
🔁 Churn: While the app’s physical therapy component should prevent churn, the challenge for Neatsy lies in retaining subscribers post-diagnosis and treatment.
😳 Market adaptation: Gaining trust in AI-driven healthcare solutions is critical for Neatsy’s acceptance and growth in a traditionally conservative market.
⚠️ Liability: Navigating the legal complexities associated with digital health services, especially around data privacy and medical advice might pose a challenge.
Founder Profile
Artem Semjanow, CEO: Previously CEO at Prisma Labs.
To request an introduction to the founder, respond to this email.
Comps
Hinge Health: Backed by Tiger Global Management, BVP, Insight Partners, Atomico, and others.
Sword Health: Backed by Khosla Ventures, Transformation Capital, General Catalyst, Sapphire Ventures, and others.
Kaia Health: Backed by Balderton Capital, Optum Ventures, 3VC, Idinvest Partners, Optum Ventures, and others.
Why Neatsy: By offering an AI-powered app that helps solve chronic pain, provides recovery, and acts as a supportive tool for doctors, Neatsy is pioneering the next step in the healthtech industry. 🦶🏻
📌 Bulletin Board
🗞 This week in venture: After a massive push into venture funding during the pandemic, hedge funds are backing away from startups.
💡 The innovation situation: An app briefly allowed Android users to message Apple users through iMessage…until Apple shut it down.
🗳 Cast Your Vote
Would you invest in Neatsy?
Last Week Today
The results are in: Edge Foods, a biotechnology company that manufactures a cell-nurturing powder to create recombinant proteins used in cultured meats and cosmetics, was slightly unfavored.
Subscriber feedback: “The company’s ability to create proteins is exceptional, however, I’m skeptical about the synthetic meat market, which the company is relying as a main revenue driver.”
✍️ Written by Brett