INTELLI Insights

Monday September 12, 2022 | Volume 1 Series 3

It’s Monday, September 12, and the quarter is rapidly coming to a close! Let’s kick off this week with an INTELLI Analyst report summary on MindMaze ~ $1.6B value (a unicorn with shares available on PreIPO) and EPIC Games ~$31.5B, a well-known name in the rapidly growing e-sports industry.

We’ll kick off the week by including our INTELLI Analyst review on MindMaze. For additional information such as leadership profiles, trends, web sentiments, RSS feeds, & other aggregated diligence metrics, visit the INTELLI dashboard in your PreIPO account.

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INTELLI Insight Report & Analysis: MindMaze

(Est. ~$1.6B valuation)

Company Overview:

MindMaze is developing a VR platform to map and respond to brain activity for healthcare and other applications. The company's products include Rehab DTx, Restore DTx, and digital assessments designed for the neuro care industry. Founded in 2012 and based in Lausanne, Switzerland. Developed digital Neurotherapy (DTx) devices designed to accelerate the brain's ability to recover, learn and adapt. The company uses immersive virtual reality, motion capture, and neurophysiological recording technologies to develop new technologies for neurorehabilitation, gaming training, and real-time 3D imaging that enable recovery of motor function in patients after stroke or brain injury. I am developing an interface.

Core Services

• Rehab DTx: Therapies and techniques that enable physicians to maximize motor and cognitive rehabilitation through the continuum of care

• Restore DTx: Evidence-based, next-generation, protocolized therapy for the restoration of true motor, cognitive and cardiovascular function after neuronal injury, degeneration, and aging

• Assessment: Diverse Digital Assessments for Accurate and Reliable Quantification of Patient Motor and Cognitive Recovery

Founding Year

2012

Website

mindmaze.com

Employees

~4,760

Base Office

Chem. de Roseneck 5, 1006 Lausanne, Switzerland

Key Leadership

Tej Tadi (Founder & CEO)

[This Week’s Freebie] INTELLI Analyst Review:

Why this Company matters right now:

On February 2022, MindMaze secured a 105 MM USD financing round to accelerate its global commercial growth plans, invest in R&D and consolidate the clinical development pipeline of its industry-defining digital therapeutic solutions for a wide spectrum of neurological diseases. In addition to that, MindMaze secured a 125 MM USD financing round on October 2021. Therefore, the company was able to raise 240 MM USD in less than six months.

MindMaze is undergoing an aggressive expansion plan that includes prioritizing the US market expansion and conducting several acquisitions. The company has hired six senior management positions between November 2021 and May 2022 to conduct this process in the most effective way. In addition to that, the company is well connected to very important private equity firms from the US, the EU, and the UK that have led or participated in several MindMaze venture rounds.

Key things "coming up" / that might come up in this company's near future:

MindMaze will be using the funds obtained from its February 2022 105 MM USD funding to expand to the American market. Concord Health Partners (a US-based healthcare private equity firm focused on investing in and supporting healthcare companies) led the financing round. Furthermore, because of Concord’s investment, MindMaze will initiate a partnership with The American Hospital Association (AHA). The AHA includes nearly 90% of US hospitals, health systems, and other healthcare organizations as well as 300,000 executives from healthcare organizations in the field.

MindMaze has conducted five new senior management incorporations to prioritize accelerating its commercial capabilities with a primary focus on the US market. In May of 2022 Mind Maze announced the appointments of Patricia Bradley as Chief Commercial Officer; Sue Olsen, as Senior VP and General Manager for the US; Shefali Shah as Global VP, Market Value and Commercial Effectiveness; Stefanie Scheurer, Director of Sales and General Manager for Northern Europe; and Nils Ketelsen as VP of Finance.

*Predictions that we have on this company's next moves:

MindMaze is likely to conduct several acquisitions during the near future using the considerable funds secured. During the last twelve months (as of August 2022), MindMaze raised 230 MM USD in two rounds: 105 MM USD on February 2022 and 125 MM USD on October 2021. Large Private Equity groups that have the necessary expertise on acquisitions in different geographies led the rounds. Some of the firms are Concord Health Partners (US market focus), AlbaCore Capital Group (Europe’s leading specialist investors), and Hambro Perks (UK, sector expertise & scalable companies).

MindMaze is expected to conduct an active M&A strategy due to its relatively recent change in Chief Financial Officer (CFO). In November of 2021 appointed Kevin J. Gallagher as Chief Financial Officer. His previous role was Managing Director for Healthcare at Citigroup, where he was responsible for all sector coverage in the EMEA region. He previously served in a number of roles at Citigroup with a focus on the US healthcare market. His vast investment banking experience and incorporation in parallel of a 230 MM USD funding proves MindMaze has what is required to conduct an effective M&A strategy.

Opportunities the company has:

MindMaze benefited from the pandemic movement and contact restrictions. Because of the pandemic, the utilization of DTx applications in various fields boomed. DTx provides unique solutions to satisfy healthcare needs, reducing the danger of COVID-19 exposure. The pandemic joined the other major drivers for the growth of DTx, such as enhanced focus on preventive healthcare, high incidence of chronic diseases, and affordable gadgets due to technological advancements. DTx became a dominant and dynamic player in the digital health industry.

In addition to the boom in DTx, MindMaze is likely to benefit from the segments of DTx application. In 2021, the treatment & disease management segment accounted for the largest share of more than 80%. This treatment & management market will increase its domination and is likely to grow at a faster growth. This segment includes managing and treating diseases like chronic care, mental health & neurological disorders by using DTx. Digital therapeutics are being increasingly adopted due to the growing concern of chronic diseases.

Things that pose a risk to this company:

The general economic and market context may pose a threat to MindMaze. The company is still a technological company that can suffer from the venture winter may hamper MindMaze’s capacity to execute leveraged buyouts on acquisition targets. Particularly, if MindMaze is seeking to execute a large acquisition to set a foothold in the American healthcare market.

In addition to that, the unstable economic outlook may implicate output and consumption reductions. This situation may generate that patients and healthcare service providers may be unable or less willing to invest in DTx. This dynamic may hamper MindMaze’s ability to achieve its revenue targets.

What the "haters" would say about this company:

MindMaze aims to do everything at the same time: US market expansion, R&D investment, sales expansion in Northern Europe, and acquisitions. This unfocused strategy may result in the company not fulfilling any of its multiple targets. In a market characterized by increasingly larger companies, not even a 240 MM USD funding could be enough to fuel so many simultaneous fronts.

MindMaze’s latest funding occurred six months ago (as of August of 2022) and no acquisition to set a larger foothold in the US healthcare market has been executed. The company could have used this unstable economic context to execute at least a modest acquisition at a lower price, profiting from the market price negative shock. This lack of vision is particularly alarming considering that MindMaze’s CFO is a tenured investment banker.

Key takeaways / Hot takes:

MindMaze has what is required to consolidate itself as the dominant DTx market player. The company has a solid and tenured senior management team that has been recently awarded by top Swiss stakeholders. They have also secured enough financing (240 MM USD in six months) to conduct a serious M&A strategy.

In this context, analyzing potential acquisition targets for MindMaze considering a well thought US healthcare market foothold would be of great interest to investors. Healthcare acquisitions in this particular sector will probably increase MindMaze’s FDA approval pipeline and further incorporate talent into the company.

Interested in learning more about MindMaze, or getting priority access to the deal? Email us here. Have some insights of your own to share? Leave a comment below.

INTELLI Insight Report & Analysis: EPIC Games

(Est. ~$31.5B valuation)

Company Overview:

Epic Games is a large video game distributors & retailer company operating the e-commerce site epicgames.com. Epic Games sells its products and services in the video game distributors & industry. Epic Games offers discount codes and coupons to its customers occasionally. Epic Games is an American video game development company best known for its successful Gears of War series of games, as well as its Unreal Engine technology. Its subsidiaries are Chair Entertainment; People Can Fly, and Titan Studios. Epic Games was founded in 1991 and is based in Cary, North Carolina.

Core Services / Offerings

• Video Games

• Game Engine Technology

Founding Year

1991

Website

www.epicgames.com

Employees

~4,240

Base Office

620 Crossroads Blvd., Cary, NC 27518, USA

Key Leader Information

Timothy Sweeney (CEO)

[Premium] INTELLI Analyst Review: