Accessible Rehab is no Easy Feat.

Here’s how we plan to bring our solutions to all.

Our Timeline

Initial Target Market: Our initial target market is the South Korean elderly population, as the MotionMate CPM fits their need for remote, hassle-free, and effective treatment. Senior citizens who require CPM rehabilitation are a growing demographic of individuals as not only is Korea a super-aged society, but artificial knee replacement procedures, commonly followed by CPM treatment, are becoming more and more common among the elderly due to technological advancements in the surgical process. The elderly are also becoming more and more independent, meaning that treatment that can integrate into their daily lives through portability is extremely valuable.

*We will serve these individuals by sourcing parts and assembling units to sell to medical device distributors as per the industry norm. These distributors then rent out or sell units to individual patients. This utilizes distributors’ existing networks and market expertise to maximize the efficacy of our market penetration. Partnerships and licensing may be future paths MotionMate can take throughout its expansion, but as assembly for a relatively low number of units can be realistically done in-house, they will not be considered for this stage to minimize costs.

Image Source: SportsMD

Image Source: 월드스타

Market Development, International Expansion, and Other Future Steps: MotionMate, after building a considerable brand image along with the financial capital required by operating in the South Korean CPM market, can expand its target market to bring innovative solutions to people of all geographic and demographic groups.

Expansion to nations such as Japan would not be far-fetched due to various advantageous trade agreements on top of demographic similarities shared with South Korea.

Another possibility would be the United States athletics market. MotionMate could target professional athletes who require knee CPM treatment, namely those who have gone through ACL reconstruction surgery, which is commonplace in major sports such as association football, American football, and basketball. Modern-day professional athletes have responsibilities that extend well beyond the playing field, such as public appearances. This means that MotionMate’s portable and adaptable nature can fit athletes’ needs well, allowing athlete rehabilitation periods to be minimized.

Our Fundraising Process

Funding Round 1 (R&D, Preparation)

Funding Goal: $500,000

Purpose: Fund research and development, conduct clinical trials, produce test batches, cover overhead costs, and attain regulatory approvals as a medical device manufacturer in South Korea.

Method: Approach venture capital funds that have dedicated mandates to invest in the healthcare industry and apply for federal funds and grants, such as the Korean Youth Startup Fund, which offers low interest rates for young entrepreneurs.

End Goal: Finish product development and all preparations required to commence with mass production, such as insurance coverage (private insurance in the case of South Korea, Medicare enrollment by applying to be a DMEPOS supplier in America, etc.). Show the infinite potential behind MotionMate to attract investors in the second round of funding.

Funding Round 2 (Mass Production & Sales)

Funding Goal: $1.5 Million

Purpose: Begin mass production by funding capital expenditures, material costs, and overhead costs, namely marketing and networking costs.

Method: The results of clinical trials and clinician feedback can bolster investor confidence, attracting later-stage venture capital firms.

End Goal: Attain a degree of market share within the South Korean knee CPM market, resulting in reaching our goal of $1 million in gross annual revenue in our second year of commercial production. Create a strong foothold based on capital and brand image to allow for domestic and eventual international business expansion.

Our Outreach

Distribution-Side

By engaging with professionals at exhibitions while providing testing inventory to distributors and hospitals throughout both rounds of funding, MotionMate can build trust and encourage adoption on the distribution side.

End-Users

As consumer choice plays a large role in the early adoption of MotionMate, marketing through BTL advertisements would be effective in specifically reaching our target demographics. Furthermore, ensuring insurance coverage and compatibility with various knee brace models minimizes barriers for end-users.

Our Projections

$1 Million in gross annual revenue in our second year of sales.

That’s the goal we here at MotionMate strive to achieve, as it would set us on a course to reach both our mission of revolutionizing knee rehabilitation and our vision of reimagining the future of physical therapy.

Revenue Estimates

Year One following funding round two

With about 130,000 annual surgeries in Korea that require CPM rehabilitation, an assumption of 5% market share and 70% private insurance coverage rates segment about 4500 early adopters in our first year. Assuming 1.5-month treatment and maintenance periods, servicing patients would require about 560 units, for an estimated first-year revenue of $520,000 (₩750 million).

Year Two following funding round two

With an increase to 18% market share and 70% private insurance coverage rates, MotionMate can estimate a user base of about 16,380 users. However, as medical device providers already have the units to service about 4,500 patients, we can estimate that there are 11,880 new users. Assuming 1.5-month treatment and maintenance periods, servicing these new patients would require about 1,480 units for an estimated second-year revenue of $1,330,000 (₩1.92 billion).

Production and Sales Cost Estimates

Estimated Cost Per Unit: $700 (₩1 million) (for first two years of production)

  • Capital expenditure: $200K (10 year life span)

  • SG&A: $900K (2 years timeframe)

  • CoGs per unit: $230, based on prototype production costs and bulk retailer cost estimates

  • Total units: 2000

  • Cost per unit calculation = Total cost / units = [(230*$2000) + ( $200,000/5 years) + ($900,000)] / 2000 units = $700

Sales Cost: $900 (₩1.3 million)

  • Based on the product’s durability and unique value in the rental market

  • Allows distributors to rent out or sell units to end-users for much lower rates than current competitors. Current CPMs range from $525 to $625 per month for rentals and $2,000 to $10,000 for purchases.