Dear Startup Investor,
Remember Medical Surgery Technologies (MST)?
We recommended it to our members in late 2013.
But only after delving into the technology and meeting with CEO Motti Frimer.
Motti was visiting Washington, D.C., at the time. He took us through his marketing plans step by step.
We believed the company had some interesting upside…
MST was addressing a real need with technology that no other company had or was likely to develop.
And now – a year and a half later – that upside is showing itself much more clearly.
Being an Israeli company, its ambition was to sell not only domestically but also globally – in Europe, the U.S. and Asia.
Its global marketing strategy is progressing right on schedule.
Its AutoLap® camera technology has since been used to perform surgeries in Israel, the Netherlands, Italy and the U.S. (To refresh your memory, the AutoLap follows the movement of a surgeon’s tool automatically.)
MST has also sold two of its camera systems in England and has recently signed a distributor in Hong Kong.
We caught up with Motti on the phone the other day. It was in the morning here in Baltimore, but in the evening where Motti was in Israel. He told us eight systems have been sold in the first half of this year.
He also said he expects that number to go up to between 15 and 20 by the end of the year.
Funds Put to Good Use
When we urged our members to contribute to MST’s $1.1 million raise, the company carried a pre-money valuation of $9.6 million.
Adam and I figured it would last about a year.
But with the additional infusion of about $500K in revenue that came in last year, it lasted longer.
Motti put the money to good use.
It financed the company’s marketing efforts in Europe and the U.S. and supported several clinical trials taking place in these two regions.
A couple of months ago, MST decided to seek additional capital.
It raised $12.5 million at a much higher valuation than the $9.6 million our Startup Investor members originally invested at.
That’s certainly great news. But Motti had more to tell us.
The round (Series C, by the way) was led by Haisco Pharmaceutical Group. Its stake alone amounted to $10.5 million.
Existing MST investors also participated in the round, including OurCrowd, the portal/VC company our members hooked up with to invest in MST’s previous round.
Haisco is a big Chinese pharmaceutical manufacturer that supplies more than 3,000 hospitals throughout China. Motti says it will also serve as exclusive distributor of MST’s AutoLap in China.
Haisco believes the AutoLap has great potential in China. Adam and I agree.
We’ve made a substantial profit already. But it’s still early. MST isn’t over the hump quite yet.
So far, though, it’s doing exactly what it needs to get the job done. And it’s only just getting started.
We believe the best is yet to come.
Invest early and well,
Andy Gordon
P.S. By the way, if you know of any American health clinics that might be interested in using MST’s camera technology, Motti would like to get in touch with them. Please let me know so I can put you in contact with him. Thanks.
Startup Investor Portfolio
