Investing in RetinaLogik


 

The following excerpt is from Allied’s original deal memo to investors. To review investment opportunities in full, please consider joining the syndicate at Allied.vc/join

 

If you’ve ever had an eye exam, you’re likely familiar with the bulky, awkward, and expensive machines that occupy an entire exam room. Additionally, Global ophthalmic diseases are on a steep upward trajectory, creating an urgent need for efficient and cost-effective eye care solutions.

Traditional vision exams, while effective, are plagued by several significant drawbacks:

  1. High Costs: Conventional eye exam equipment can cost upwards of $90,000 per machine, including ongoing maintenance and staffing expenses.

  2. Operational Inefficiency: Traditional setups often require multiple machines for different tests, with some exams taking up to 30 minutes per eye. This inefficiency limits patient throughput and clinic space utilization.

  3. Revenue Loss: The time-consuming nature of traditional exams restricts the number of patients a clinic can serve, directly impacting potential revenue, with an estimated cost of nearly $4B annually in North America alone.

  4. Patient Discomfort: Extended periods in awkward positions during exams often lead to patient discomfort and negative experiences.

Enter RetinaLogik

RetinaLogik is a revolutionary healthtech company on a mission to transform the landscape of vision care through its innovative AI/VR-powered eye exam platform. 

By leveraging proprietary machine learning and AI algorithms, RetinaLogik has developed a suite of eye exams that can be easily distributed through off-the-shelf VR headsets. Furthermore, following many years of clinical trials and research, these exams have been clinically proven to match the accuracy of gold-standard eye exams and address critical inefficiencies in the current eye care model.

RetinaLogik versus incumbents

How It Works

RetinaLogik is on a mission to replace up to 85% of existing eye exams while consolidating multiple tests into a single (hardware-agnostic) VR headset. 

This consolidation not only simplifies clinic operations but also opens up new possibilities for eye care delivery, particularly among people who cannot get to a clinic.

After the patient puts on the VR headset, RetinaLogik’s software walks them through an immersive tutorial and administers each eye exam using voice prompts (available in 20+ languages).

Why we are thrilled to support the team at RetinaLogik

1) Proven Team with Deep Domain Expertise

At the helm of RetinaLogik is Dr. Abed Sarhan, Co-Founder and CEO, whose background exemplifies the kind of technical founder we love to support. Abed's academic journey, culminating in a PhD in Computer Science from the University of Calgary, has equipped him with a rare combination of skills perfectly suited to RetinaLogik's mission.

His research focus on machine learning, natural language processing, and the application of deep learning to glaucoma detection demonstrates a profound understanding of the technologies underpinning RetinaLogik's innovative platform. This academic expertise, coupled with his practical experience as a full-stack developer and data scientist, provides a solid foundation for translating cutting-edge research into real-world applications.

Given Abed’s deep domain expertise, we believe his ability to bridge the gap between advanced computer science and practical ophthalmology positions RetinaLogik to create truly transformative solutions in the eye care industry.

2) Large and Rapidly Expanding Global Market Opportunity at the Intersection of a Technology Paradigm Shift

RetinaLogik is strategically positioned at the convergence of several high-growth markets and technological trends that we believe create an exceptional opportunity for rapid scale and market dominance.

For instance, the North American vision care market alone is projected to reach a staggering $33.5B by 2028, providing a vast addressable market. We believe this market size, coupled with the following key factors, creates a perfect storm of opportunity:

  • Rising adoption of VR headsets (following the Apple Vision Pro) makes RetinaLogik's platform increasingly accessible and familiar to clinicians and patients.

  • Rapid advancements in machine learning and AI software enable continual improvement and expansion of RetinaLogik's capabilities.

  • Growing demand from clinicians for technology that enhances operational efficiency while improving patient care.

  • An incumbent ophthalmic diagnostic equipment market that is ripe for technological disruption.

We believe this confluence of factors positions RetinaLogik at the forefront of a paradigm shift in eye care technology, with the potential to capture a significant share of this expanding market.

3) Strong Early Traction with Delighted Customers, Unique IP, and a Distribution Advantage

RetinaLogik's early market performance has been nothing short of impressive. In one year since its September 2023 launch, the company has:

  • Successfully administered thousands of eye exams.

  • Secured hundreds of enterprise software subscriptions from clinics nationwide.

  • Consistently grew revenue by 25% month-over-month with highly attractive software gross margins.

  • Established short 30-day sales cycles with zero churn, indicating strong initial signs of product-market fit.

We believe these metrics paint a picture of a product that not only meets but exceeds market expectations. Additionally, 95% of patients have said that they prefer RetinaLogik over traditional gold standard exams, which speaks volumes about the user experience.

Lastly, we believe RetinaLogik's proprietary IP (deliverable as a software subscription compatible with off-the-shelf VR headsets, and medically licensed for distribution), provides a significant competitive advantage. This model allows for rapid scale and easy distribution through their existing clinic partnership network, enabling quick marketshare and adoption.

In Summary,

We believe RetinaLogik's innovative approach represents a technology paradigm shift in eye care, whereby the global adoption of VR intersects with new capabilities in machine learning and AI algorithms.

In addition, by addressing the key pain points of traditional eye exams while maintaining gold-standard accuracy, we believe RetinaLogik is positioning itself at the forefront of a major technology transformation in the global eye care industry (which is expected to reach $173B by 2031).

As such, we believe this presents an exceptional investment opportunity in the infrastructure software layer of a large and rapidly expanding market with significant potential for disruption and value creation.


Certain information contained in this post has been obtained from third-party sources, including from portfolio companies of Allied Venture Partners. While taken from sources believed to be reliable, AlliedVP has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; AlliedVP has not reviewed such advertisements and does not endorse any advertising content contained therein.

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by AlliedVP. (An offering to invest in an AlliedVP fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by AlliedVP, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results.

Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

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