Marc Rippen in November flew home from Germany with a first-place finish in a global pitch competition and $500,000 in prize money, facing a critical year for his Space Coast startup.
Alertgy Inc. took the top spot at the 42plus1 startup competition in Dusseldorf, Germany, the latest success for the Melbourne-based developer of a non-invasive, wearable blood glucose monitor.
Alertgy has rocked pitch competitions and intrigued researchers, but it needs government approvals before it can begin to sell its product to diabetics.
Alertgy expects to take a major step toward that this year by starting clinical trials at the University of Florida and in Germany by the third quarter, Rippen, president and founder of Alertgy, told Orlando Inno. That would put Alertgy on a path to bring its product, which uses sensors to detect blood sugar levels instead of drawing blood, to market by 2024.
80% cost savings
Despite the Covid-19 pandemic disrupting the medical field, Alertgy made progress during the last two years. Like many early stage companies, the 6-year-old firm has spent much of the pandemic focused internally.
That was especially true when the pandemic sparked a global shortage in the electronic components Alertgy used in its blood glucose monitor. As a result, the team redesigned the device with new components, resulting in a device that’s 80% cheaper to make, Rippen said. “We didn’t sit there feeling sorry for ourselves.”
Plus, Alertgy in 2021 won a U.S. Army deal to deliver 12 biometric wristbands. Working on this contract gave Alertgy the chance to miniaturize its blood glucose monitoring device to fit on a wristband.
Meanwhile, the turn toward virtual interaction during the pandemic enabled Rippen to participate in more events and pitch to more investors than he would have otherwise. The interactions with investors are crucial, as Rippen plans to raise a $10 million investment round this year, partially to fund the clinical trials that’ll cost $5 million, he said. “We have a couple of groups interested. We’re going through due diligence right now.”
Finding its focus
In addition to monitoring blood glucose levels, Alertgy has found other possible applications of its technology. The firm last year won a U.S. Department of Agriculture challenge to develop a way to detect chronic wasting disease in animals, and Alertgy since 2019 has worked with NASA to find ways its technology can track body performance in deep space.
However, Alertgy will keep blood glucose monitoring its focus, Rippen said.
It’s not uncommon for early-stage companies to develop a product with multiple applications, said Jarin Eisenberg, chief operations officer of small business incubator Groundswell Startups, where Alertgy is based.
Where to focus resources can vary company to company, but Eisenberg said sales are usually the deciding factor. “It comes down to what is the avenue for sales for your product and which application can you gain traction in and start making some sales.”
Medical device firms can be expensive to fund long enough to land proper regulatory approvals to begin sales. However, health care technology is generating high levels of interest among investors. In fact, health care firms landed more than $97 billion in funding last year, up 21% from $80.5 billion in 2020, according to business intelligence firm CB Insights.
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