The market for endotracheal tubes is very large: it is estimated that between 200 and 250 million tubes are used each year. Moreover, due to the aging population, this is a rapidly growing market with 6.7% growth. As a result, the number of tubes doubles every 10 years. 


There are two segments of the global endotracheal tube market that are particularly suitable for Presscuff: 

(a) Intensive care: estimated at 15-17% of the market.

(b) "Complex operations": estimated at 28% of the market.

 

These are intubations where there is a high risk of lung infections.

Subglottic aspiration has a 40% market share in intensive care in the US. In our view, Presscuff is a superior system because it:

We therefore believe that Presscuff has the potential to achieve this market share as well.

A few months ago, Presscuff appointed an external party to carry out an independent valuation. Riverrun valued Presscuff at €12 million. This is based on the financial plan with the above market data and a detailed cost analysis. If Presscuff realizes this plan, the company's valuation will increase significantly, as a high discount rate (of >45% per year) has been applied to the potential future cash flows.

However, as Presscuff wants to generate even more upside potential for our early investors, it was decided to lower the valuation for this round to €8.69 million (pre-money). This means that all founders will also participate in this capital round, under the same conditions/valuation.

The financial plan for Presscuff is divided into two phases: the development phase and the commercialization phase.


1. Business development and clinical study - 49% of the financing requirement.

Presscuff has already completed one clinical study, which was successful for all patients. Presscuff has spoken to potential partners and selected them for the follow-up study, and we are now in the final preparatory phase to start this study in collaboration with a university hospital. This study will include more patients in order to statistically prove that Presscuff does indeed stop the flow of secretions, thereby reducing the number of pneumonia cases.

 
2. R&D & patents - 26% of the financing requirement.
 
The prototype of the product is ready, and we are investigating different setups to arrive at the best solution for patients and hospitals. Presscuff also has exclusive, worldwide licenses on patents in various regions, including the US and Europe. These licenses cost Presscuff money, and Presscuff is constantly looking for additional protection and patents.


3. Business continuity: Marketing, Logistics, etc. - 25% of the financing requirement:

Presscuff will already prepare for the commercialization phase, including the logistics and production set-up.

Presscuff has the following marketing strategy: 

During the commercialization phase, Presscuff will contact the Benelux hospital market directly in order to establish direct contact with customers.

For other regions, Presscuff will collaborate with distributors who have contacts in hospitals, initially in Europe and the US. This will enable Presscuff to scale up sales more quickly than if it were to build its own global sales force. Moreover, some distributors have already shown interest.
 
Presscuff will first start commercialization in the Benelux market in the coming years, after which we plan to start sales in the US and other neighboring European countries with a partner. If this can be done faster, all the better.

In the financial plan, Presscuff's market share will steadily increase to 6% of the total market and 13% of our most important market (intensive care & other complex operations).

 

With this plan, Presscuff could potentially generate average revenues of more than €20 million between 2029 and 2031 and more than €100 million from 2032 onwards. If Presscuff finds a strong distribution partner, this commercialization could happen even faster.
 
This translates into rising profits and average profit margins above 20% (of sales).