Debt First. Equity Upside.
simple annual interest, accruing from the day your funds arrive. At our first institutional round, principal + interest converts at 75% of that round’s price (a 25% discount) — or is repaid. 24-month term.
Simple interest accrues until the institutional round. No payments in between. If no round closes by month 24, principal + interest is repaid.
Convert principal + accrued interest into the round’s equity at 75% of the price new money pays — or decline and take repayment. No cash out on conversion; the interest becomes shares too.
Example: a $100K note, institutional round closes in 18 months →
$100K × (1 + 10% × 1.5 yr) = $115K
$115K ÷ 0.75 = ~$153K of shares at the round price — or $115K in cash.
Illustrative summary for discussion only.
Convertible Note Subscription
Two independent benchmarks — one public, one private — bracket where we are today.
Both comparables were priced well above ViewFlow's current mark at the stage ViewFlow occupies now. Five units are built and four top surgeons are waiting to place them — the next step is gated on shipping hardware that already exists.
IPO option — target $300M: we replace Novadaq's SPY Elite with a dye-free device and open a larger market — surgeons who need to confirm blood flow is adequate before closing. A ThinkEquity investment banker, introduced by our corporate securities attorney, called ViewFlow “the best story in 10 years,” advising: get sales, then see where the IPO market is.
Source of cash for variable costs: 5 units already built; K2 (financed 250+ of Novadaq's SPY Elite subscriptions) has agreed to buy ViewFlow's at $90K/unit on delivery and each renewal year.
*Activ Surgical valuation is an estimated post-money from private-market databases (Dealroom, Tracxn); the $45M Series B led by Cota Capital is confirmed by company announcement. Novadaq market capitalisations are point-in-time actuals reconciled from the market-cap series. Illustrative summary for discussion only. Not an offer to sell or a solicitation to buy securities; any offering is made only to accredited investors through definitive documents. Forward-looking; valuation figures are internal estimates, not appraisals. © ViewFlow Medical, Inc.
Common stock at the $64M valuation the last round closed at — before first revenue, with the price step-up still ahead.
How early medtech is valued: not like a typical Nasdaq growth company, priced on long-term earnings with little prospect of an early sale. Early medtech is priced on the likelihood of a strategic acquisition, compounded by the rate of revenue growth, because a device company typically delivers high gross margins (e.g., 80%) to the acquirer.
Illustrative summary for discussion only. Not an offer to sell or a solicitation to buy securities; any offering is made only to accredited investors through definitive documents. Contains forward-looking statements and modeled projections that involve risk and may not be realized; valuation figures are internal estimates, not appraisals. © ViewFlow Medical, Inc.
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