The market for endotracheal tubes is very large: it is estimated that between 150 and 230 million tubes are used per year. Moreover, this is -due to the aging population- and rapidly increasing market with 6.7% growth. As a result, the number of tubes doubles every 10 years. 


There are 2 segments of the global endotracheal tube market very suitable for Presscuff: 

Indeed, these are the intubations where there is a high risk of lung infections.

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

Therefore, we believe Presscuff has the potential to reach at least this market share as well.

Presscuff appointed an outside party to conduct an independent valuation conducted. Riverrun has currently valued Presscuff at 12 million euros. This is based on the above market data and a detailed cost analysis. A heavy discount rate of 50% was applied in the discounted cash flow model, which means Presscuff will have already more than doubled in value.

But since Presscuff wants to generate even more upside potential for our first-time investors, it was decided to set the valuation for this round lower set, at 8 mln euros (pre-money). In this way, all founders will also participate join in, at the same conditions/valuation.

The financial plan for Presscuff is divided into 2 phases: the development phase until the end of 2026 and the commercialization phase starting in 2027. 

1. Clinical trial - 43% of funding need.

Presscuff has already completed 1 clinical trial, which was successful for all patients. Now Presscuff will partner with a university hospital for a follow-up study. This study will include more patients in order to statistically prove that Presscuff does stop the passage of secretions, thus reducing pneumonia rates. 

The protocols and arrangements for this study are currently being finalized.

 

2. Certification - 22% of funding need.
 
Presscuff has been working on CE certification since the start of this year, this is necessary to be allowed to distribute in the Eurozone. After that, Presscuff will also apply for US FDA approval, to be allowed to distribute the product in the US as well. 

3. Patents, marketing & further R&D - 35% of funding need.

Presscuff has exclusive, worldwide licenses on patents in the various regions, including in the US & in Europe. These licenses cost Presscuff money and Presscuff is constantly looking for better protection of its product.

Moreover, Presscuff is working on improvements of the product and Presscuff is exploring other medical applications of the Presscuff technique.


Presscuff has the following marketing strategy:

On the one hand, Presscuff makes sure that through research and academic papers, Presscuff becomes known among physicians. We are currently in contact with several thought-leaders in artificial respiration in Europe and the US. 
On the other hand, Presscuff is in contact with several leading hospitals in Belgium. This shows a strong interest in Presscuff from various hospital departments, including intensive care.


Employee costs are divided between the above 3 projects.

In the commercialization phase, Presscuff will contact the Benelux hospital market directly, in order to have direct contact with the customer.

For other regions, Presscuff will work with distributors with contacts in hospitals, first in Europe and the US. This will allow Presscuff's sales to scale up faster than building out through its own global sales force. Moreover, some distributors have already shown some interest.

Presscuff will start Benelux market commercialization in 2027. In 2028 Presscuff plans to start up the US market with a partner, in 2029 we will start up in the other neighboring countries. If this can be done faster, so much the better.

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

 

This will potentially allow Presscuff to create sales of more than 20 mln from 2029 and more than 100 mln from 2031. If Presscuff finds a strong distribution partner, this commercialization may accelerate.

This translates into increasing profits from 2029 (>5mln esti.) & 2030 (>10mln) to >50mln in the following years.