New Investment Opportunity: Surgical Theater
150 systems in Mayo Clinic, NYU, Stanford and 20 top hospitals
- 150 systems installed for more than 20 customers/users including Mayo Clinic, NYU, Stanford, and Mount Sinai
- FDA clears company's first augmented reality platform for spine surgeries in the operating room; the FDA cleared products are applicable for cranial, spine, cardiac, thoracic, urology and GI
- Partnership with Medtronic to interface SyncAR™ augmented reality technology with Medtronic's StealthStation™ S8 surgical navigation system
- Company implemented leadership changes with Alon Zuckerman as President
- $10M-$15M CLA with the participation of OurCrowd and HTC with $75M cap at 20% discount and preferred rights to receive 3X on the investment upon liquidation event; terms reflect current company financial considerations; CLA will extend runway through 2023
BOOK A CALL
with your Investor Relations representative
Dear Josb,
Practice makes perfect. Nowhere is accuracy more essential than in complex surgical procedures. Surgical Theater is the leader in extended reality (XR) healthcare services. With more than 100,000 consultations and 20,000 surgeries at the Mayo Clinic and 20 other top hospitals, Surgical Theater provides the only proven XR visualization platform that creates 360° patient-specific models for various surgical disciplines.
OurCrowd is investing in Surgical Theater. The details in this email are based on information received from, and verified solely by, the company.
The Problem
Medical surgeons need to practice and visualize complex procedures before cutting into human patients. There are limits to what can be learned from cadavers and animals. To enhance outcomes, surgeons can benefit enormously from a platform that allows them to immerse themselves in the procedure inside the human body as if it was really happening.
The Solution
Surgical Theater adapts flight simulator technology to complex medical procedures. Surgical Theater's XR technology has been studied, published in more than 30 peer-reviewed publications, and is proven to improve patient engagement, increase patient conversion rates, improve surgical plans, and provide great clinical value in the operating room. Rendered from comprehensive combined modalities of CT, MRI as well as advanced post processing images of DTI, fMRI BOLD and Perfusion, these 360° models follow the patient throughout the surgical care journey, giving them and their care team a comprehensive, inside-out-view of their anatomy. By helping weave the benefits of fully immersive capabilities of AR and VR, and applying advanced technologies of AI and machine learning into the healthcare ecosystem, Surgical Theater is transforming the standard of care.
The Traction
Surgical Theater accounting revenue in 2021 was $9.4M with 57% gross margin. The company expects ~$5.1M revenue in 2022 with gross margin of ~63%. Surgical Theater forecasts it will double its revenues in 2023. The company has 20 customers and users including Mayo Clinic, NYU, Stanford, Hackensack, Bambino Gesu, Baycare, and Mount Sinai. In total, the firm has installed over 150 systems.
Surgical Theater has a partnership with Medtronic to interface its SyncAR™ augmented reality technology with Medtronic's StealthStation™ S8 surgical navigation system for cranial and spine applications.
SyncAR™ for Spine, the company's first augmented reality spine application for the operating room, received FDA clearance in September 2022. The company reports 98% accuracy of screw placement when using SyncAR™ for Spine, compared to freehand results of 94% accuracy.
The Company
After growth slowed in H1 2022, the company implemented a recovery plan to preserve its cash runway, including terminating the employment of the CEO, reducing headcount and cutting expenditure. The company implemented leadership changes and nominated Alon Zuckerman, its President, to replace Moty Avisar who no longer holds an active position in the company. Surgical Theater is now focused on developing augmented reality for endoscopic procedures and a new line of products in standalone navigation. Surgical Theater forecasts it will double its revenues in 2023 and become cash flow positive going into 2024.
The Round
OurCrowd has an up to $2M allocation in this up to $15M CLA with a $75M cap at 20% discount and with preferred rights to receive 3X on the investment upon liquidation event. The terms reflect the company's current financial considerations. The CLA will extend the company's runway through 2023 and beyond.
Meet the President
We're hosting a webinar/conference call on Tuesday, January 10th, at 7PM Israel / 12 Noon New York / 9AM San Francisco for investors to meet President Alon Zuckerman and learn more about Surgical Theater.
Can't make the webinar? Register and we will send you a recording of the call.
The Surgical Theater Solution
Surgical Theater is accelerating its innovation by incorporating AI, ML, and image processing to automate capabilities and develop new programs. Currently, the company is undertaking R&D focusing on new structures including the liver, optic nerves, brainstem, ventricles, blood vessels, and hippocampus.
Planning: The SRP converts a patient's 2D scans into a 3D model. Surgical Theater also offers the BrainStorm to facilitate preparations and compile information.
Patient Engagement: Surgical Theater's products are used to engage and educate patients on their anatomy and their treatment journey.
Surgeon Collaboration: The XR Studio in conjunction with Surgical Navigation Advanced Platform and SRP configurations, is designed to enable collaboration between multiple surgeons "flying" in patients' anatomy for education and joint planning towards surgeries.
SyncAR: This is the intra-operative platform of Surgical Theater and has virtual and augmented reality capabilities for cranial and spine applications. The platform brings the 3D model into the operating room and works in conjunction with other operating room systems in real time. The platform enables surgeons to follow their surgical plans during actual surgeries to potentially perform the safest, most minimally invasive procedures possible. SyncAR integrates Precision XR enhancements with the surgeon's existing surgical navigation systems while enabling surgeons to make a patient-specific surgical plan.
For brain surgeries, SyncAR overlays the live optical images from surgical endoscopes and microscopes. Seamlessly integrated with Medtronic Stealthstation S8 and Zeiss or Leica microscopes, SyncAR injects the VR model into the microscope eye-piece allowing surgeons to have all the visual data they need, when they need it, without having to move their eyes away from the surgical scene. For spine surgeries, SyncAR allows spine surgeons to wear an augmented reality headset and view the virtual model as well as other essential visual data, overlayed on the surgical scene; this capability turns SyncAR into a visualization hub inside the OR. SyncAR also provides visual guidance capabilities for screws placemen, improving accuracy comparing with other clinical methods.
Surgical Theater Enterprise Solution: The enterprise solution enables the above functions to run on a central server, rather than on systems occupying space or carried on carts, running and storing data on multiple specifically dedicated CPUs. This solution enables scale-up, as additional licenses and users can be added in a cost-effective manner.
Next steps:
0 Comments