Neatsy🦶🏻

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.

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

• Imagine a world where you could search the entire universe of startups (including stealth) in seconds, filtering for companies that exactly match your investment thesis.

• Imagine you could prioritize startups with the strongest investment potential (e.g. seasoned founders with strong growth).

• Now imagine that, every morning, that list of new startups is delivered to your inbox for analysis.

• 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.

  

  Cartoon by Jesse

Founder Profile

• Artem Semjanow, CEO: Previously CEO at Prisma Labs.

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.

📌 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

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

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