Follow the MedTech Money Q1 2025 Financial Trends with Zapyrus

Hello, and welcome everybody. Thank you for joining today's webinar. My name is Shawn Smith from Medtech, leading voice, and I'm here with Kevin Siam from Zappyrus, and today's webinar is going to focus on the q 1 financial trends in comparison with projections, and where we thought we were going to be. It's called, Follow the medtech Money. I have a couple of announcements that I'm going to make while people are still joining. Let's see housekeeping notes. This webinar will be recorded, and will be made available to all registrants. If you would like a certificate of attendance from today's event, we can provide that for you. You should put your name and email address in the chat, and

we will create that in the next few days. Please be patient. They have to be made by hand. So the yeah, we don't have AI to do that yet.

What do you mean by hand? Are you like writing it down on a piece of paper and shipping it.

No, we. We do them in canva.

But okay.

It's all good. And so right so. And then we have. Next week we have 2 webinars. Let's see, one is scientific literature review, and the other one is cybersecurity. So I'm going to put the details about that in there. But the one thing that I did really want to talk about was, we created a program last week for startups to attend 10 x for free and it's it involves a sponsor company and the Sponsee Company. So if you're interested in attending 10 x either reach out to me. And but that's that's because we and so yeah, we're looking at startups in. And we actually use a Pyrus to identify a couple 100 startups in Southern California. And.

Oh, nice! I didn't. I didn't know that that's awesome.

Yeah, and we're we're reaching out to them. So yeah, that that's a good segue. I will put these announcements in the chat as well. and without further ado, I'm gonna turn it over to Kevin. Thank you.

Awesome. Thanks, Sean. Thanks, thanks for the intro and and hand off and welcome everybody. I see people are still rolling in. I see some familiar names, some some clients as well. That's awesome to see. So we're gonna keep this. I'd like to keep this pretty casual, pretty conversational. I'm I'm gonna be presenting a lot of numbers and data, right? But I wanna have a focus around actionability. Right? What does it mean if you're a business professional operating in med tech whether your service provider or you're looking to invest in companies, or you're looking to understand better a certain therapeutic area space because you wanna

penetrate deeper into that subsegment of the Med Tech market. The data is aimed to be able to help shape that narrative of from q. 1. And how that plays out in Q. 2 and q. 3. And looking at the trends that we saw from last year and our predictions. And what came true this year, based on our predictions from last year? And all the data comes from suppliers. So I think it. It makes sense to kind of kick things off a little bit, to give a little bit of background about kind of as far as what we do before we get into the the data portion. And yeah, feel free to chime in in the the chat. If you have any questions throughout, Sean, if you don't mind just fielding the questions and managing that throughout, because I probably won't be able to see the chat at all.

That would be great. Okay? All right. Awesome. Okay? So a little bit about my background. So I have a kind of a weird background. I've kind of interacted with Med tech and data and fundamental research from the the early days all the way to the business side of of the industry. So I've been involved in Med Tech approaching 10 years in totality now. And so I started with my background in chemistry, tissue engineering, and portable diagnostic device development in the early days of of research. we use data heavily in research to be able to understand how to move innovation forward.

And then I moved over more on the oem side in a liquid biopsy company using market data and clinical data to determine successful outcomes of the device and the technology before coming to the Pyrus. And we're utilizing data and machine learning here to enable business actions and market intelligence. And so what I guess we're all understanding is like data is a critical piece to be able to move innovation from ideation all the way to a medical device product, approval and commercialization. There's this gap where, when we look at selling and business development and sales, though, and marketing.

There's this kind of gap where people just feel like it's all just feelings and relationship base. And so I'm just gonna go out there to conferences and shake hands and kiss babies and rely on referrals to kind of grow my business, not the case, like, we've been living in the information age we're now migrating to the AI age. Data is more important than ever. Especially with conference attendees going down the global trade wars happening, you're gonna rely more heavily on things that you can do to generate business from your desk. And so we're gonna touch up on on some of those themes as well. So without further ado, I'll just share my screen. Just really just get into it.

just some of the data here. Can everybody see my screen, by the way, perfect? See, Shawn.

At some point at some point. I'm gonna queue up a poll.

Yeah.

So you just let me know when you want me to do it.

Feel free to do it anytime. I don't doesn't matter to me, so pause me anytime to queue up the poll. But okay, so let's let's start. So what we've learned from working with hundreds of professionals in the Med Tech space and looking at performance tracking and over years is that we see that the best sales and marketing teams take a targeted data driven approach to maximizing their commercial productivity, especially when you're scaling from. you know, one or 2 people all the way to teams of 3, 4, 20, and beyond so that enters the pirates like, what? What is the pirates. What do we do? So we pride ourselves as being the most actionable sales and marketing system for Med tech Service providers. That's how we came to market.

We consider Med Tech to be all regulated medical devices, diagnostic Ibd systems. And the emerging software as a medical device space. Here's just some examples of a handful of our clients operating in multiple sectors, across small companies, medium size to to large organizations, enterprise wide that leverage the pirates year over year to scale their commercial success. From marketing, intelligence, market intelligence and fueling action ability across their sales and sales. Enablement teams. So it's it's hard to describe the virus like in one word or in one sentence, just because we do a little bit of everything. It reminds me of that Steve Jobs. Announcement of the iphone for the 1st time where he's going through like, it's a Internet communication device.

It's a GPS, it's a phone. Well, it's all in one device. These are not 3 different devices. So it's similar to Opirus, where, if you're asking questions around, you know, can can I find. Can it help me find my medtech total addressable market? Well, yeah. Can it help me score and find my serviceable market? Yes. Can it help me increase conference. Roi. Yes, have more productive sales calls. Yes, so like you get the gist, it does a lot of different things. How we do it is we take that noisy Med tech market data, right? You can imagine opening 20 different tabs trying to do market research pulling data from FDA device recalls sec filing funding, data, clinical trial, pipeline product, pipeline press releases conferencing. We take all of that, enter it into our Zappyrus system where we've built a machine learning model to be able to segment and transform that data to be actionable for sales marketing team and their use cases

so that allows to do is be able to help you with sales, execution and marketing in a really centralized and industry specific way. Okay, so enough of that. That's kind of what we do. And all the data comes from surprise that you're about to see here. So let's let's just get into it. And feel free to chime in. Ask questions anytime. I want this to be more casual, conversational as well as we're going through the analysis here. So alright. So there's 1 question that really, I want to highlight here. We know that we're kind of in times of uncertainty from kind of global geopolitics. And in the election years off of

us. Election recently, and Canada election, where we're based. Canada is going through our election rounds is in the next couple of weeks as well, and all the trade wars and tariffs and things make it really difficult, and Nih cuts and all that make it really difficult to predict where the market is going to be, and how business is going to be shaped. Right? So we kind of lean on data to be able to help advise us in this instance. So yeah, how do we cut through the noise? Well, let's let's go to the data. And so I want to kick this off with. We put together a blog, and you can find out blog that tries to dig in a little bit into what the funding cuts from the FDA.

All of that noise around, and that buzz around funding cuts. What does it mean? And and all that is covered in detail in the blog. But we just wanted to present this graph here, where we're looking at quarter from q. 1 q. 2 q. 3 q. 4. From the last 4 years that totals the Svr. Funding quarter by quarter, and you can see you know, the recent funding cuts right have not really affected q. 1. Numbers in terms of total early stage grant funding from the Nih. What if if the hypothesis is true that funding cuts to the Nih is going to impact early stage innovation?

We should see a dip in Q. 3 and Q. 4, when we track and we'll we'll publish this accordingly. Once we have those numbers we should see a dip in 2025 for Q. 3 and Q. 4, which I don't think we're going to see that big of a dip. After looking at the numbers in detail given that the funding cuts are mainly related and attributed to overhead costs, and not directly to the R. And D portion of the funding. So my hypothesis is that it shouldn't affect R&D spend that much from the funding portion of the the grants. It just means that people need to be more efficient at handling administration costs in order to tap into that R&D funding.

So that's my hypothesis for the next 2 quarters stay tuned to find out more about where how that shapes up to be over the next 2 quarters. Okay, so here's the kind of juicy bit, and and probably where? Where you guys will start to be interested in some of the numbers here. So the full report is published as a Paris blog as well. We. We publish this publicly, for now you can read it in detail, but we can kick things off with the total. q 1 funding in the last 3 years. and as we can see, this funding captures everything but revenue, so we've removed revenue out right? So this captures grants seed funding Angel Investment series, A, BCDC, etc. And we can see that

it's actually increasing since 2023, which is what we saw kind of in the Covid Cliff era, right where funding peaked in Covid, and then it dipped the year after because of like Covid being dealt with accordingly. And so the successive years funding dipped. And it's just starting to peak back up. And so funding now is actually higher than when it was during Covid. Thank you. One back in 2020 to 2022. However, when we take a look at the numbers more carefully, we can see that in Q. 1, 2025. There's actually a large contribution of 26 Med. Tech companies with funding events equaling to, or greater than 100 million dollars, and that is in part why, this bar in 2025 is a lot higher. And when we, when we dug deeper into the data, we saw that

there's actually less numbers of companies in totality that are being funded. But on average, the amount of funding per company per round is a lot higher. So the the companies that are getting funding are getting more money. But there's less companies that are getting funding overall. And so what this means is that investors are becoming more cautious, more data driven before coughing up their cash. But when they do, they almost double down because they're not, they're not spreading that cash across more volume of investments. They're kind of keeping that investment volume tight, but putting more into the investments that they make.

And this is an interesting trend that we've been observing since 2023. This happened in 2024 as well, and same with this year. Also.

Is there any indication of what they're favoring like.

What do you mean by what they're favoring.

Well, you say they're being more selective, you know, and what they're what they're putting their money into. What what are they selecting? Are we gonna get to that, am I?

Oh, yeah, that's the next 3, 4 slides. We're gonna yeah. So we start with, like, okay, this is the total funding. And then we're gonna look at the different distribution of funding by therapeutic area, by company size by company. Pipeline maturity like, where is that funding going and what they're favoring is is to answer your question.

So there was a comment that I wanted to share, based on the on the inside noise from people at Nih Nsf. Dod and other grant funding will be cut further than what than what we've seen so far. and the other. And there's a question here. How is the Zappyrus approach different or better than simply using AI tools to gather market data and information.

Yeah. Good question. We already established that medtech is noisy. General. Large language models can't differentiate between technical differentiation between one type of implantable device versus another. So it's really, we combine AI with data experts to be able to structure that data in an accurate way where you can take action on it. If you try to apply a large language model that's generic that's trained on any type of data that you put into it, it's going to give you either false signal. So in large language models and prompt engineering, we call it hallucination levels. So it'll just make stuff up

so like it'll start to hallucinate answers and give you false answers. But it looks real if you can't validate it. So for us, because we centralize and clean up medtech data. And then we apply AI on top of it. It's very structured and clean and accurate. And so that makes it more actionable. And so these numbers. We can trace it back to the cent that we pulled in from from our data like the penny amount. I know we're measuring it in billions here. Okay. So when you look at funding by type, and and you see that and you measure funding by type in in different stages of funding, and that's in the Green bar here. And then you look at the number of companies in that category that are receiving funding.

You see an inverse correlation. Right? You see a steep exponential decrease in the number of companies that are receiving funding versus the amount of funding that they're getting. and that's correlated to a couple of reasons. One. You don't need as many or as much capital to succeed in the early early stages of development. Right? You need to take your idea into a patent and a prototype way less capital than in Series B, where you're trying to launch a full blown pivotal study right where you need much more capital. 2. As companies proceed through the different stages of development. A lot of them die out because they can't make it out of that early stage to receive that next round of funding.

And so both factors combined lead to this kind of inverse correlation. Right? And then, when you see in the Ipo stage. Of course, once you go public, you're getting a lot of funding injection to expand commercialization and globalization footprint of your medical technology. Right? We'll we'll launch. If there's interest. We're happy to put together a report around. You know what each stage of funding means and how medical device companies that are bringing in different types of technologies look to spend their money at each stage of development. It's not going to be covered today because it's way, too, in depth. But we're we're happy to

put that together and and publish it online. If there's interest feel free to message me, or or Shawn or email email Us.

Really cool. Question about that last slide. Well, like what the timeline is, and I don't think there really is a timeline on this, because it, you know, when a company does series a series B series C is all different. So it's not so much a timeline but rather an investment line. If that makes.

Yeah. Yeah. Different companies turn on a series a at different times. You're absolutely correct on that part. But when they do turn on a series. A, let's say, all implantable or high risk class 3 device companies when they turn on Series A, they're trying to use that capital for specific things like turning on a 1st in human or a feasibility study, looking to flesh out reimbursement codes looking to like they're using it for those strategic initiatives. Whereas if you're a class one class 2 device company, and you turn on series A, it's a different thing that you're spending it on right, and it's a smaller amount, also that you would need to raise for that round.

Oh, so he he has. sorry. What years? 2023 through current or.

Hmm good question. This is of just this quarter. this, this. What you're seeing here is q, 1 of 2025. This is recent data that you're seeing.

So, yeah, thank you.

Yeah. And this the the reason why we're presenting the recent data. It's like, so you can take action on this in your next right now, and in the next 2, 3 quarters within this year to kind of strategically pivot your business, right? If you need to. Okay. So then we look at funding by employee size split and then funding by therapeutic area. Okay, so where's that money going? Well, you can see that a lot of that money. Basically, half of it is all in the large companies, 10,000 plus employees. And then the other half is not fully, evenly distributed, but more or less evenly distributed amongst the 5 buckets here. Across companies that are 5,000 or less in employee size.

Okay, and then, when we look at how it's being distributed by therapeutic area. It's interesting to see here in this quarter. we predicted from last year's annual funding round, we saw a rise in women's health and women's health funding in Medtech had peaked last year higher than it's ever peaked in the past 20 years, I believe, because that's always been an undervalued and underrepresented therapeutic area in both Pharma and and the Med Tech space where we're seeing it come through is through the introduction of tech and software. It's allowed niche therapeutic areas to gain traction because that opens up different types of applications in that space that wasn't possible before.

and so we see it now in where that funding is being distributed, where cardiovascular, you know, still maintains a dominance in Med tech space, like a big portion of the Med Tech market and funding is going to support cardiovascular device. Development. Oncology has been on the rise and in this quarter. It's actually second in terms of capturing right around 15% in the total funding this quarter women's health. Similarly, 15% neurology and orthopedic covering right around 10% dermatology and wound care, infectious diseases. These are lower funding amounts just because the type of technology coming out are typically Ivd or diagnostic testing for infectious diseases which is lower risk, lower capital needed to bring to market. And so it kind of reflects the demand of capital in that therapeutic area.

So it's super exciting to see that that women's health investment continues to rise rise in this quarter as well. So really cool to see that when we look at q. 1 splits between 2025, and yellow, 2024 in dark gray, and then light gray is 2023. Here, when we look at the split between the 3 main buckets of medtech traditional devices. Ivd technologies and software medical device last year predicted that with the emergence of large language models and the prevalency of AI within the Med Tech space that we're going to see a spike in software as a medical device investment.

We're actually seeing that come to fruition this year in a really big way, almost a 4 x increase in that space. And this is reflected in the fact that we're seeing more outsourcing service providers around security compliancy around outsourcing software development. Increase in volume as well. And representation at some these conferences. It's interesting, though, to see that this number is not net new per se. It's almost a reallocation in where investors are are choosing to invest that money in a particular type of technology, right? It's almost. you can almost say it's being taken directly from devices and slapped on software as medical device.

So it's not total net, new, large amount of cash injection from from somewhere, like the tech industry or something. Although we see some of that, it's mainly a reallocation in where they put that money in terms of the technology development. Okay? We expect this to continue to rise and eventually plateau over the next year or 2. I think I think there'll be a pause in further cash injection, just because people want to see where regulation falls for software, how the software, as medical device companies are performing on the market. Right? There's there's always an influx of cash injection. And then a pause.

and then it either goes up or goes down accordingly, and then plateaus right? Or have a more linear growth in terms of that segment in the market. Okay? So then then I want you to. I want to introduce suppers intelligence kind of what that data means. So in suppers, we have actionable data which we call suppliers intelligence. And so one of this that we're this is a brand brand new capability that we're turning on. It's being able to take a large volume of data. run the data analysis and have a high accuracy predictability score of when a medical technology company is going to look to turn on a clinical trial, right? And so if you are a Cro, or if you're helping with clinical trial management or regulatory filing strategy around clinical trial development, all of that this score is going to help you get ahead

of that opportunity before the company even announces it based off our our metadata of thousands and thousands of historical companies that have come to market before in line with that technology type. And so we can see out of the whole, out of all the companies that are funded this quarter or this 1st quarter with an 80 80% accuracy that we've been able to validate. 72% of those companies has a high likelihood at 80% accuracy to start a clinical study in the next 8 to 12 months. about 5% is at medium, and then 20 24% is at low.

And so you can find this specific company and trigger in zippiris as it pertains to this opportunity score. But I just thought it was interesting to kind of map out the progressionary potential. A couple of quarters out, based on the data that we see in q. 1.

Questions.

Yep.

Is spine included in orthopedics. Yes.

I'm sorry.

Is spine spinal products included in in orthopedics.

I would have to double. I would have to double check for you, and that.

Let me go with yes.

I think so as well. I think it's included in orthopedics. But I'll have to double check. I can't can't give a solid

And where does diabetes and metabolic health fall.

I think it gets captured under cardiovascular.

Sorry.

We can. We can break it down to, though into specifically diabetes. So we can go even further down, deeper. For the general audience. We're just bucketing them and combining things together at a high level. But yeah, in cardiovascular, there's we can break it down by implantable cardiovascular versus wearable, cardiovascular, and things like that.

Where does the respiratory sit? Please.

Respiratory here. I don't know if I think I don't think it's being captured under under here.

Would that be like ventilators? Is that what you know? I don't know.

It could be like drug delivery devices. Also, I think that is involved with like a breathalyzer or something like that that could be related to could be related to that therapeutic area. It's it's tough to to segment by therapeutic area, because people have slightly different definitions of what's in what's out. We try to stick it as close to as the regulatory, like the FDA definition of how they bucket these and approve these devices in into those segmentation. In Zephyrus we we pull the disease condition from the mesh condition network. That the FDA has, and so that sticks close to like the indication for use, the intended use, mechanism as well, and and the medical dictionary definitions of

diabetes, and what falls under that right diabetes hypertension. All of that stuff kind of gets merged into like a bigger cardiovascular branch, oftentimes. Okay. cool, great, excellent questions. And I make no promises that I can answer. All of them live in a call. That's the one that's the one promise I can make. Okay, so let's let's dig into kind of the the milestone future plan milestone. So in Zapirus we have these signals that we bring in called future future plan signals. And so this helps our clients predict in a better way. What that company is looking to do in the next anywhere, from one month to 6 months out to 2 years out. So

these future plan milestones can be bucketed into design, development. activity, clinical activity, regulatory submission, activity, or regulatory approval, activity and commercial activity. So you could see that in yellow. This is the present kind of q 1 numbers, and then we look backwards into Q. 4 of last year. Q. 3 of last year and Q 2 of last year. So we can see that the increased volume of clinical future plan activity from the past 3 quarters has resulted in a massive increase in regulatory submission. Which is not it. It's not illogical. It makes sense, right? The more clinical trials that you're pumping through

the more it's gonna contribute to approve devices. Right? So we can see that in the trend and you can also see that Design and Development Plan volumes. This quarter kind of mirror. Q. 2. Of last year, with an expected spike in clinical regulatory projects for Q. 2 and Q. 3 of this year. based on a similar trend that we saw with leading design development indicators here. And so overall. I think it looks help like the market looks healthy. It's on a growth trajectory. I think it's just important to identify the right ones to kind of focus on. If you're a service provider.

we can break it down further into these design development signals versus clinical, commercial, and regulatory. And yeah, we could see that you know, design development funding is on the rise slightly right? Funding for clinical trial development is at an all time high compared to the past 3 years. So expect a lot of clinical trials being turned on. Commercialization. Funding is is stable, right? So it kind of is within variance from from the past 3 quarters. Okay? And then we go into emerging companies.

I have a question.

Yep.

Can you segment data? By Europe and us.

Yes, we can segment us by states, even yeah or city. We can segment Europe by country, or region through a mapping feature that we have. So you can zoom into Nottingham and see okay within Nottingham ecosystem. Where is where is the business and market distributed? I would just like, I would just like to do a spontaneous testimonial. I use.

Zappyrus, I am a client of Zephyrus and I think that the segmentation is phenomenal. It's really just about. you know, down to the disease state or the clinical trials, or I mean, there's so many ways to slice and dice, the geography, funding stage, etc. Etc. Just to drill down and find out exactly what these companies are up to.

Yeah, almost too many ways where it leads to analysis. Paralysis, sometimes, I find. But yeah. But to answer your question, yeah, we can absolutely do that. That's that's easy. We can do that in seconds. In our platform. Okay, so let's look at emerging med tech companies, right? And so emerging Med tech companies, I think to agree on a definition here. How we define it is typically companies with less than 50 employees that are not yet gone commercial right? So they don't have a commercialized product on market and have received funding types such as grant seed angel investments, early stage venture funding things like that. And so we can see that

emerging Med tech companies are definitely on the rise in terms of funding averages and this is marking the average funding per emerging Med Tech Company. So we can see that. I said at the top of the call that the average amount of funding per company has increased, and this is kind of where we see it on the emerging side of the Med tech space but the volume of them that are receiving funding is drop like I mentioned. So you need to be more strategic and like isolating for the right ones. to target. Okay? And so what is the proportion of total funding

quarter by quarter from q 1 of this year going back to Q, 4 of 2023. So this is spread across a couple of years here received by class 3 device companies. So these are like high risk, high dollar amount. If you're a service provider, if you're an investor, you need to cough up more cash to to fund this type of initiative, and we can see that it's been increasing out of like the Covid Cliff era of like 20 late 2023. Here it's been increasing, but it's plateaued right? And it's plateaued. Because I think one reason is that graph, that reallocation of budget from devices to Samd graph, I think a part of it is is that

another part of it is just in newly innovative products does not need to be class 3 devices right? Like, there's a lot of stuff that you can do within within class, 2 devices through connecting those devices with software and and tech to make it smarter and more powerful and extend expand. Use cases. So it's not bad. It's plateaued at a high. So that's that's encouraging. And then we look at funding distribution in the past. year for patent volume. We can see that. the funding, the companies that are receiving, funding a lot of them are turning on 11 or more patents in the past 12 months with that funding.

And so we can see that successful companies are receiving more funding outside of revenue because we remove that additional funding to then prop up future development, pipeline right? And so investors are then putting more money into companies that maybe have brought one product to market before, and now are looking to replicate that success in multiple therapeutic areas intended use different indications and or just other products in the portfolio, right? And so that's where you can find you can identify long term stable opportunities that continue to expand here and on the opposite end, we actually see a pretty healthy amount of funding going to the the early stage companies where they already have a patent. They're just using that funding not to turn on new patents, but to take it into fleshing out development, prototyping, reimbursement strategy, taking it through that that regulatory pathway.

This is a tangential question. But is from, they said, Hey, great Webinar! I'm curious. If you have any insights into what's driving this increase in funding in q. 1. When there's so much uncertainty at the moment around tariffs, timeliness being affected with layoffs, those with supply chain issues, etc. also, do you have any insights? So I think you sort of addressed the 1st one. In that you said. you know that investors are just being more selective where they put the money. Is that.

Yeah, they're being, yeah. They're being more selective. And we've worked with some of them in the past. And they're more data driven to understand. They 1st before they invest, they're looking at what is the downstream total market of this investment? What is on average, this type of technology? What is the runway in which it. It's going. From this stage of investment all the way to commercialization and potential M and a.

Has it.

Yeah.

So the second part of the question which you're sort of answering is also, Do you have insights into companies at risk, eg. They have future milestones planned, but do not have not raised the funds in over 2 years, are pushing their timelines back, and cannot connect the dots here.

Yeah, that's when you. That's when you gotta look at when the last time they received funding. And what is the runway for that funding look like right? So, for example. they haven't received funding in the last 2 years. But they're in, let's say, the 1st in human stage, and their last round of funding was 3 years ago, but they raised 20 million dollars. They don't need to raise another round within the past 2 years like they're using that to to basically try to get their product to commercialization or or regulatory approval stage, to then raise that next round of funding to scale up manufacturing commercialization.

And so it's not. You can't get a 1 always. It's this answer. It's you kind of look at the data backwards a little bit and see, like, okay. do they have that history of solid funding? And maybe they're just sitting on that to stretch it out, or they are actually struggling or about to die, because they haven't received any investments in the past 3, 4, 5 years, and and don't have that track record of of success moving forward. And so the good news is that all of these numbers that I'm showing is only of funded companies. I'm not showing you the ones that haven't been funded this quarter. So even this distribution plot here between percentage of commercial and pre-commercial stage companies, this is of funded q 1 companies, this distribution. So we can see 77% of the q 1 funded companies are at that commercial stage, and that kind of

as on to my point around the fact that investors are further investing into these companies that have proven out maybe one product at the commercial success, and now are turning on 11 new patents to scale out more pipeline right? And so that is predictable is a way to generate predictable pipeline. If you're a service provider, and it's also a way to understand as an investor where that money is going, because in times of uncertainty and the kind of the what's happening around the globe. If you hold on to cash. You're also diluting your cash, depending on its it's reference to Usd or or the euro, or in our case, CAD is tanking. So it's you know, like you kind of want to put that somewhere. Also, it's just where do we put it?

Right? And you're finding out kind of today. They're putting it in strategic places here where you saw that rise in software as medical Device Company. You're seeing it not being put in a lot in the high risk super early stage doing it for the 1st time type companies. But companies that have some track record of success, some risk mitigation strategies on coming to market. Just because with this trade war, for example, right? Large companies, the way they're going to pivot is we're just gonna increase our prices. Easy solution right to the trade-way companies that have not yet aligned on a a rollout commercialization plan for their device. And they're in the middle of a clinical trial.

They're like, okay, we did our clinical trial for FDA approval. We have to launch in in the Us. Right because we're getting that first.st So that changes the way we evaluate manufacturing partners. It's like, do we just manufacture in the Us. With a partner in the Us. But then where do those components and materials come from? Is it coming from China through that manufacturing? Who's paying that tariff? And so how much investment do we need to to get there. So companies that are in the early stage are reevaluating like before they get hit. Clinical, they're saying, Do we want to launch in the in the EU first.st Now.

with this situation, companies that are already in clinical and have committed to launching in the FDA and getting FDA approval or in the Us. Getting FDA approval. They're just trying to figure out, how do we reduce the cost to manufacture and get it to commercial and start generating revenue? Large companies that are global. They're just like, let's just raise our prices, because that's the easiest way, like we're not going to pull product off shelf or reestablish within a 4 year stretch reestablish, you know who our main manufacturers are right.

We have a related question to that. What activities are you tracking to determine future milestones of design and development?

Yeah. So we're we're seeing in the metadata where companies are announcing, hey, we received this grant funding and we're looking to develop a prototype of our device over the course of the next 8 months. That, then, is a signal is a direct signal for us to say they're planning to do design development or prototype right there. That's more direct, less indirect signals are like we're turning on this new patent, and we're looking to bring it to clinical in the next 12 months. And so that gives you a more of an estimated okay? Well, then, they're probably gonna start to do initial R. And D in the next quarter, and try to do some prototyping in the successive 2 quarters leading up to the 12 month. Plan.

And so that's being picked up in sec filings and press releases in grant filings and abstracts and press conference presentations all over the place. We just centralize it. And then our data experts and machine learning model picks up on that and segments it out into nice snippets of information where? A lot of our clients. You probably do this too, Sean. It just sets an alert on the market they care about, and just wake up every day with a report of like, hey! Let me just get caught up with all my companies and market that I'm looking to penetrate into.

Yes.

Yep, and then and then, lastly, funding by public status. So most of them are public companies that are receiving this funding, which is not surprising because those companies tend to demand larger cash injection to grow incremental percentages. percentage points. But that that's it. We've got maybe 10 min to spare. We can field some questions. But yeah, feel free to visit the Zepyrus website. Our blogs are open and public, for now the report is on. There you can subscribe to our newsletter for free to get a kind of monthly updates on kind of the medtech market and things like that. And also. If you want a demo as a virus, feel free to just shoot us a demo request straight on the website. We're happy to take you through the platform.

Excellent. So you know, having used having used a virus you know, I see a lot of use cases for this around product and service providers selling into med tech identifying signals. That indicate need whether those be for consulting engineering or other. You know, cyber security, etc. You know. How. How do your clients use this effectively to identify prospective customers? And then this is something that you and I have talked about is, you know, developing a workflow that's more than just like, hey? Do you want to buy? You know?

you want to hire me, you know, like it's it's we've all gotten those ham fisted invitations on Linkedin that are like, Hey, I do this. And I'm and I'm about this. And so Kevin and I have had a lot of conversations about you know how how you move somebody from being a stranger never met them to developing a relationship, developing a conversation and and essentially developing a pipeline for your your product or company.

And it's it's it's interesting because a lot of these new AI tools and even traditional tools where you've you've got, like, you know, a list of contacts, a list of companies, right? And then you have a way to automate email cadences and outreach right? That works well. If you're selling a 1 track solution where it's like, Hey, I sell T-shirts. Are you interested in T-shirts? And your total addressable market is like the world who doesn't need a T-shirt, right? So that's like, kind of hey? If we're salesforce right? Who doesn't need a Crm, we can sell to everybody. So that high volume kind of messaging automation approach works well. But if you're operating in a niche like Medtech.

if you approach it that way, you're going to burn through relationships and your brand credibility within a week by doing that at that volume, because your total addressable market is already small, right? And it's consolidated. And within that the people that are looking to partner are really looking to find true partners that are invested in them. and they're not just looking to buy a T-shirt and move on. And so you can't take that same level of approach where Sas companies and Sas tools are built to support Sas companies and Saas tools. And the way they do business development there and try to plug it into a niche industry like Med Tech, where it's still traditionally shake my hand at a conference, and you know, kiss my baby, or maybe not kiss my baby, but shake my hand at a conference and relationship base. It's like, how do you take it from there, and just do more of that in a more meaningful way, without going on the polar opposite end, which is spray and pray

and generic messaging. Right? That's where kind of that's where we operate in that kind of sweet spot in between.

So that so this ties into that 1st part of the question, I'm not sure is answerable. How is the data truly validated? Second part of the question is, how best to action on the data is this more commercial or regulatory for more? For commercial or regulatory professionals? I see it as both, you know. I see there being a lot of valuable information in Zephyrus for regulatory professionals. I think it's more used commercially. Kevin.

Yeah, I think I think you're right. More use commercially, for sure. But even in the commercial space it differs on the role. So, for example, if you're a marketer, you're gonna use a Pyrus to take that data to then score your entire account base to understand? Okay, we have 300 accounts that are high value, that fits our service at a 90% or higher level right? And so we're gonna take that and then market towards them. So that's how marketers use this data right? Whereas if you're a salesperson doing prospecting, going to conferences, right? You're using zapiris to plan your road trip. Right? You're going to Boston

at that Boston event. You want to see who strategically can benefit from our partnership. If we're a design engineering firm that's going to be at that event. And then who else in the Boston area should we be connecting with while we're there? So that's like field work? And so they're using it in a different way than a marketer would. And then for people that are super busy that are managing their existing client, pipeline, and that are also responsible for doing a little bit of prospecting here and there. They're gonna automate a lot of those signals into a consolidated report that they get at the top of the morning, so that they can quickly go through and say, This is actionable. This is not yet. This is a good follow up point. This is not yet. And so for them that workflow is different because they're half account managers, half supposed to sell

right, and so on the commercial level, even from role to role teammate to teammate, it's just implemented differently. And the utilization is different, based on your roles and responsibility of the data.

If there's also tremendous potential for post market surveillance state of the art competitor monitoring and looking looking for new market entrants. That that may displace you. And then I had another question. How can surprise best be used by an early stage Med Tech company startup to refine a business plan which.

Oh, yeah.

Similar to what I just said, which is defining the market landscape, putting some numbers around it. Demo.

Yeah. So basically, let's say, let's let's bring a technology as an example. Right? Let's say you're Sean. You're a med tech startup. CEO, right. And you're looking to pitch to an investor about your technology. Your technology is a competitor to a wearable device like it's a wearable device that does smart tracking. Maybe some glucose sensing. Whatever your combination is. An investor wants to understand, like, what are the risks and what are the benefits to investing in this technology, in this market. you can go into Zappyrus and pull. Okay, what are all of the companies working on this technology?

Right? And what stage of development are they all in? So who's directly competing with with me at this stage? Who is ahead of me, and who's already on market that we need to look to displace. So that gives an investor an understanding of like, okay, you kind of know the space in terms of competition. And then you could see within the tool. Because we track investment dollars, you can see. Oh, that other competitor got investment from this Vc. Firm that I know about that invested in this portfolio product wearable product. You can also use it to then go after Vc firms that are investing in similar technologies as well, and be more targeted that way.

yeah. So those are just a couple of examples, I think, from from how somebody like can use that to kind of map out their their market and competition that way. And then you can track your competition in real time. So you can say, Okay, now that I've identified them. I wanna be notified every single day on what they're doing, what conference they're at, what patents they're putting out. How are they doing on a clinical spectrum. Did they publish a new research paper on their clinical outcomes? You get alerted off of that. And so you're you're tapped into your competitive landscape every single day, and any emerging ones will automatically get pulled in and notified

because you define that criteria you're like. Show me all competitors working on wearable devices any new ones that come online tomorrow and publish an event you already know about them in real time, tracking it that way.

So we're going to go ahead and wrap up. We don't have any more questions from the audience. I would remind everybody, please complete the survey that will pop up on your screen at the end of this call. That helps us understand you and prepare better for future events. I'd like to thank everyone that attended today, and I'd especially like to thank Kevin for coming and sharing this with us. I got a lot out of it. I enjoyed it very much, Kevin. Any closing remarks.

Closing where I'm I'm a monster for feedback. Please connect with me on Linkedin. Please message me email me give me your feedback what you love what you liked and what you hated, what you want to see more of what you want to see, less of I'm happy to contribute back to the community and support. One thing that came up was around sales, methodology, and stuff. Also happy to run a webinar talking about best sales, methodology practices for med tech industry. If you're approaching. If you're a service provider, or if you're an actual oem and happy to kind of consolidate my my knowledge, our our knowledge base working with hundreds of of companies and teams as well into into a a webinar. If you're interested, feel free to give that feedback. So that's all.

And I forgot to mention Kevin will be attending 10 x 2025, may 7, th and 8th Newport Beach. If you or a startup that, you know, is interested in attending. He and I are actually going to be speaking about marketing and I think it's gonna get really exciting. So please join us and help us spread the word. Remember, subscribe to medtechleadingvoice.com.com, and follow the pyrus. And Kevin. Thank you so much for your time. Everyone I'm an this week for the Device Safety Conference. So I look for reports this week from that event.

Awesome. All right.

Bye, everyone.