VibeTech Enterprises is raising at a $14,039,116 valuation, without discount. This valuation, despite low revenue in the past year and significant debt, reflects hope for an innovative product in a generally lucrative market. However, the lack of discount and revenue are strikes against VibeTech, resulting in a low price score for the company.

As an experimental technology, VibeTech’s therapeutic machines are quite expensive — limiting possible consumers. That said, costs could be mitigated by health insurance, and nursing homes might do well to invest in the product for the benefit of their residents. In the long term, the target market continues to grow as the U.S. population ages. Falls are the leading cause of lethal and nonlethal injuries among the elderly, and consumers are looking for preventive measures. In the short term, however, restrictive measures due to COVID-19 have forced some elder care facilities to close and others to adopt financially-punishing restrictions such as hiring more staff and spacing out facilities, even as residents die in high numbers.

In addition, Americans tend to underspend on preventive care for all kinds of chronic conditions. This could present a marketing problem for VibeTech, depending on whether the technology is perceived as a cost-saving rehabilitative tool or an expensive gimmick.

Overall, the target market is decent — but the timing of a global pandemic has thrown a wrench into VibeTech’s economic gears. Thus, the company’s market score is middle of the road.

VibeTech Enterprises’ founder and CEO is Jeff Leismer, an experienced biomechanical engineer and director of technology with a PhD in Mechanical Engineering from the University of Florida. After developing the technology working with NASA, Leismer has secured 10 patents and led his company to win McKnight’s Excellence in Technology Innovator of the Year for Skilled Nursing Gold Award in 2020.

Shoring up the team are Ed Morgan and Donna Rippin, who serve as CFO and Sr. VP of Strategy and Branding, respectively. Morgan is a financial veteran, having more than 25 years of experience in financial counseling for various business owners and investors. Rippin has spent her career going in-depth into brand management and growth, spending three years as a senior executive partner with the U-Group LLC. She also currently serves as CEO and founder of the Business Brains Group, an organization focused on supporting business growth.

Overall, VibeTech Enterprises enjoys the support of a strong and competent team, as reflected in its above average team score.

Falls are a huge problem among older adults. However, industry innovations seem largely centered around mitigating damage through alert systems and environmental restructuring, such as installing grab bars and removing slippery surfaces from the home.

VibeTech Enterprises’ technology has proven results and is supported in part by NASA, which offers it credibility. The technology is innovative and seems to have proven successful in its limited distribution. Studies of vibration therapy in general seem inconclusive on its benefits, so VibeTech’s successes are particularly promising. VibeTech’s device also employs a trademarked SmartDosing system which does not require the attendance of a trained physician. The system is based on a subscription service for updates, another source of future continuing revenue.

Overall, VibeTech’s patented technology and early success indicators combine to give the company a very high differentiators score.

Since summer of 2018, VibeTech has been engaging in experimental therapy with small groups, through a laboratory in Sheboygan, Wisconsin. The company has also provided more than 20,000 treatments. Over that time, it has seen high levels of pain reduction and significant increases in leg strength among patients. The company has yet to reach a point where it can produce their product commercially and make a profit.

Despite being pre-profit, VibeTech’s early studies and promising treatments are indicative of encouraging early traction for the company. Thus, its performance score is strong.

As turmoil rocks nursing homes and the healthcare industry changes dramatically in the U.S., VibeTech has no guarantee of successful commercialization. The product is expensive. With hospital facilities, nursing homes, and at-home patients alike all facing financial strain due to the global pandemic, there may simply be little opening for the company to market its products.

While the company plans to produce cheaper models and enhance customer support capabilities, it may be some time before their innovation can see success among the general market. Furthermore, as seniors switch from communal care facilities to at-home care by therapists, spooked by high COVID-19 cases, the market may become less centralized and difficult to target effectively. Much will depend on how long COVID-19 restrictions last and how quickly the elder care industry can recover from the pandemic’s impact.

As America’s population grows older, falls remain an ever more pressing problem for elder care. VibeTech’s technology has shown early effectiveness. With the funding to develop models that are smaller and easier-to-use, the company can broaden its appeal to care facilities and individuals alike. Over the long term — by proving itself in the early stages of the U.S.’s graying phase — VibeTech can emerge as an industry leader in preventing falls and expand its product offerings beyond that niche market into providing therapy for other physical illnesses.

VibeTech Enterprises is producing an experimental therapeutic vibration machine that simulates the effects of exercise on patients’ legs and lower body, strengthening elderly populations that might be vulnerable to falls but are incapable of traditional aerobic exercise. The technology is expensive, but VibeTech plans to create a cheaper version and commercialize it with additional funding, while improving user-friendliness of their trademark SmartDosing program.

Unfortunately for VibeTech Enterprises, the COVID-19 pandemic has had a significant impact on its target market. Nursing homes and individuals have seen a reduction in financial wherewithal to spend on preventive care, and as a cheaper version is still forthcoming, the product faces a challenging market in the immediate future. Therefore, VibeTech Enterprises has been rated a Neutral Deal.

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com.

Analysis written by Benjamin Potts.