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CARDIO AI

Investment Memorandum

CONFIDENTIAL

Investment Thesis

Cardio AI represents an extraordinary investment opportunity at the intersection of artificial intelligence and cardiovascular healthcare. The company is developing the first comprehensive, multi-agent AI platform for cardiovascular care while demonstrating world-class operational efficiency with 60% EBITDA margins. With $10.26 billion in projected revenue and $6.16 billion in EBITDA over five years—requiring only a $5M seed round—Cardio AI offers investors unprecedented returns in the $187 billion AI healthcare market.

Investment Highlights

• Massive Market: $187B AI healthcare market, $52.4B cardiovascular AI segment growing at 37-40% annually
• Exceptional Financials: $10.26B revenue, $6.16B EBITDA (60% margins) over 5 years
• Immediate Profitability: $30.6M EBITDA in Year 1 - no burn period, no bridge financing
• Capital Efficiency: 1,231x return on $5M seed - self-funded growth, no dilution
• World-Class Margins: 60% EBITDA margins (2x better than best-in-class SaaS)
• Only Comprehensive Platform: First unified solution combining risk assessment, diagnostics, and clinical decision support
• Market Leadership: 50,000 → 2.5M members (50x growth), 20% market share by Year 5
• Women's Health Moat: Only solution in $2.6B women's cardiovascular market
• Proven Model: Clear FDA pathway, EHR partnerships, clinical validation
• Multiple Exits: $10-15B IPO potential or strategic acquisition by tech/healthcare giants

Financial Projections - Optimized Model

Cardio AI's financial model demonstrates exceptional profitability with 40% operating expenses and 60% EBITDA margins sustained across all five years:

Year 1 (2027):

• 50,000 members, $85 blended PMPM
• $51M revenue, $20.4M OpEx (40%), $30.6M EBITDA (60%)
• 75 FTEs, profitable from Day 1

Year 2 (2028):

• 250,000 members (5x growth), $122.40 blended PMPM
• $367.2M revenue (620% YoY), $146.9M OpEx, $220.3M EBITDA (60%)
• 85 FTEs

Year 3 (2029):

• 1,000,000 members (4x growth), $156.20 blended PMPM
• $1.874B revenue (410% YoY), $749.6M OpEx, $1.124B EBITDA (60%)
• 220 FTEs

Year 4 (2030):

• 1,750,000 members (1.75x growth), $153 blended PMPM
• $3.216B revenue (72% YoY), $1.286B OpEx, $1.930B EBITDA (60%)
• 380 FTEs

Year 5 (2031):

• 2,500,000 members (1.43x growth), $190 blended PMPM
• $4.752B revenue (48% YoY), $1.901B OpEx, $2.851B EBITDA (60%)
• 520 FTEs, $9.14M revenue per employee

5-YEAR TOTALS:

• Total Revenue: $10.260 Billion
• Total EBITDA: $6.156 Billion (60% margin)
• Cumulative Cash Generated: $5.5+ Billion
• Return on Seed Investment: 1,231x

Business Model & Unit Economics

Cardio AI operates on a four-tier PMPM (per member per month) subscription model enabling scalability across all customer segments:

• Tier 1 ($30 PMPM): Risk assessment with 5 validated calculators - primary care market
• Tier 2 ($50 PMPM): AI-powered diagnostic imaging analysis - cardiology groups
• Tier 3 ($100 PMPM): Complete platform with all features - hospital systems
• Tier 4 ($40 PMPM): IoMT integration and remote monitoring - chronic disease management

Blended PMPM increases from $85 (Year 1) to $190 (Year 5) as customers adopt higher-value tiers and complete platform. This pricing model is 70% lower cost than competitors while generating superior margins through:

• Zero Marginal Cost: AI platform serves 2.5M members at same infrastructure cost as 50K
• Automated Acquisition: Product-led growth, word-of-mouth drives 40-50% of new customers
• Self-Service Platform: Automated onboarding, AI support handles 70% of tickets
• Lean Operations: Revenue per employee grows from $680K to $9.14M

Market Position & Competitive Advantages

While competitors like Aidoc ($250M), HeartFlow ($2.4B), and Cardiologs ($150M) offer point solutions, Cardio AI is the only comprehensive cardiovascular AI platform. Key competitive advantages:

• First-Mover Comprehensive Platform: Only solution combining risk assessment, diagnostics, clinical decision support
• Superior Economics: 60% EBITDA margins vs. 25-35% for best SaaS, enabling aggressive pricing
• Women's Health Monopoly: Only solution in $2.6B market, significant competitive moat
• Workflow Integration: EHR, IoMT, PACS connectivity vs. standalone tools
• Scalable Pricing: Four tiers serve $30M small practices to $5B health systems

Use of Funds

Seeking $5M seed round to fund Year 1 operations. Company becomes self-funded thereafter through operating cash flow:

• Product Development (35%): Complete AI model development, EHR integrations, mobile applications
• Clinical Validation & Regulatory (20%): FDA 510(k) clearance, clinical studies, peer-reviewed publications
• Sales & Marketing (25%): Initial sales team (25 FTEs), launch marketing, pilot programs
• Infrastructure (10%): Cloud architecture, security, HIPAA compliance
• Working Capital (10%): Operations, contingency, risk mitigation

Note: Year 1 generates $30.6M EBITDA, eliminating need for Series A. Optional Series B ($40-50M) in Year 3-4 for international expansion only.

Risk Factors & Mitigation

Technology Risk: AI model performance may vary across diverse patient populations. Mitigation: Continuous model improvement, human oversight protocols, diverse training data.

Regulatory Risk: FDA clearance timeline uncertain. Mitigation: Experienced regulatory advisors, 100+ AI cardiovascular devices already cleared, robust clinical validation.

Market Adoption Risk: Healthcare provider AI adoption slower than projected. Mitigation: Focus on early adopters, proven ROI (25-40% reduction in events), value-based care alignment.

Competition Risk: Larger players may enter market or acquire competitors. Mitigation: First-mover advantage, comprehensive platform vs. point solutions, 60% margins enable aggressive defense.

Execution Risk: Achieving 50x member growth requires excellent execution. Mitigation: Experienced team, proven technology, capital efficient model, immediate profitability reduces pressure.

Exit Strategy & Returns

Multiple high-value exit paths within 5-7 years:

• IPO (Most Likely): $10-15B valuation (2031-2032) based on $4.75B revenue, $2.85B EBITDA, 60% margins
• Strategic Acquisition: EHR vendors (Epic, Oracle), tech giants (Google, Microsoft), healthcare companies (Philips, GE Healthcare) - $8-12B valuations
• Remain Private: $5.5B+ cumulative cash enables return of capital to investors while maintaining independence

Investor Returns (Seed Round): Based on conservative $10B exit valuation and $5M seed investment, seed investors realize 2,000x return assuming 10% ownership post-dilution. Even with significant dilution, seed round offers 500-1,000x returns.

Investment Opportunity:

$5M Seed Round

Pre-Money Valuation: $20M

For investment inquiries:

Sampson Kontomah - Founder & CEO

Everlyn Ndirangu - CFO & Co-Founder

Andrew Young - Director of Investment & Government Relations

Todd Wiltshire - Director of Finance & Investment

Email: invest@cardioailive.com

This document contains confidential and proprietary information.