Dr Aadeel, an ambitious and highly qualified biotechnologist, arrived at Shark Tank Season 15 Episode 15 to raise funds to finance his cause. His company, Psyonic, developed an advanced bionic hand to help people without limbs.
The production numbers of the Ability Hand did not meet the market demand. More funds were mandatory to enhance the production capacity. Did Dr Aadeel get a deal on Shark Tank? Find out in this Psyonic Shark Tank Update.
Psyonic Bionic Hand Net Worth
Dr. Aadeel Akhtar asked for a $1 million investment in exchange for 2% equity in his company. This meant he valued his company at $50 million. He made a deal with Lori Greiner, Daymond John, and Kevin O’Leary for $1 million in exchange for 6% of his company. This new deal valued his company at approximately $16.67 million. After the show aired, Psyonic saw a significant increase in website traffic, sales, and social media exposure. With an estimated 10% yearly growth rate (typical business growth), the current net worth of Psyonic is about $20.35 million.
Psyonic Bionic Hand Shark Tank Update
What Happened To Psyonic Bionic Hand After Shark Tank?
Nothing has changed much for Psyonic after leaving Shark Tank. The website has the Ability Hand listed, but there are no recent updates.
However, the shark tank episode is mentioned on the homepage to confirm that everything is on track after the deal. The lack of new products and different marketing strategies is understandable because no one agreed with or advised Psyonic to change anything.
Did Psyonic Bionic Hand Get A Deal On Shark Tank?
The negotiation did not start well for Psyonic as Mark Cuban refused to invest because Dr Aadeel’s answers were unsatisfactory. Robert Herjavec soon opted out because he was skeptical due to the investment Psyonic could manage to raise.
Kevin O’Leary offered $1 million for 10% of ordinary shares to value the company at $10 million. Daymond John and Lori Greiner offered Dr Aadeel the same amount for 6% ordinary shares. Dr Aadeel was reluctant to give up equity, but sharks were worried about dilution in future fundraising.
Dr Aadeel countered them with a combination of ordinary and advisory shares. However, Kevin joined Daymond & Lori and demanded 7.5% ordinary shares for $1 million. They struck a deal at $1 million for 6% ordinary equity shares.
| Shark(s) name | Offer | Demand | Counteroffer | Accepted? |
| Lori Greiner, Daymond John, and Kevin O’Leary | $1 million | 7.5% ordinary shares | 6% ordinary shares | Yes |
| Lori Greiner and Daymond John | $1 million | 6% ordinary shares | 2% ordinary shares and 2% advisory shares | No |
| Kevin O’Leary | $1 million | 10% ordinary shares | 5% ordinary shares | No |
| Robert Herjavec | N/A | N/A | N/A | N/A |
| Mark Cuban | N/A | N/A | N/A | N/A |
Dr Aadeel Akhtar’s Backstory
Dr Aadeel Akhtar from San Diago, California, was seven years old when he first saw a girl of his age missing a limb. The girl was living in poverty in Pakistan and missing her right limb. Her struggle to crouch with a branch inspired him to develop Ability Hand.
Dr Aadeel Akhtar earned his bachelor’s degree in biology from Loyola University Chicago and proceeded with a master’s in computer science. He did another master’s in computer and electrical engineering. After doing PhD in neuroscience, he left medical school for the Ability Hand. However, he started working on the 3D printing right after graduating.
Initial Pitch
The presentation started with Dr Aadeel Akhtar greeting sharks using a bionic arm. He asked for $1 million for 2% equity in his company, Psyonic. The company developed bionic limbs for humans and robots. The cause originated when he met a handicapped girl in Pakistan. It inspired Dr Aadeel to create the Ability Hand.
According to Dr Aadeel, the ability was the first bionic limb that could provide sensory feedback and was controlled with muscles. He enumerated several other features of the Ability Hand (I mentioned it later in the update). Sergeant Garrett Anderson, a military veteran, accompanied the pitcher to instantly demonstrate everything.
Queries About The Product
Robert Herjavec asked about the timeline of the money raised. Dr Aadeel replied that the company had raised $3.6 million, of which $2.2 million came from the Start Engine crowdfunding campaign. Daymond John wanted to know the valuation at which the amount was raised. The founder clarified that $1.4 million was initially raised at a $12 million valuation. Subsequently, $2.2 million was raised from Start Engine at a $50 million valuation. The money was raised over a year.
Mark Cuban did not like the duration of the fundraising. Dr Aadeel asserted that grants were a prominent financing source as the company received $2.4 from state agencies. He was expecting to receive $2.7 million next year as a grant. Mark said that the company wasted its time on Start Engine because the product and the vision could have earned it more funds.
The founder explained that he went on a crowdfunding campaign because Psyonic had raised half the funds from sales on social media. The product was registered as a medical device with FTA and covered by Medicare. Before the Ability Hand, only 10% of patients could afford bionic limbs.
Kevin O’Leary inquired about the cost and demand of producing a limb. Dr Adeel said the whole project cost $15,500, while a single unit had a landing cost of $1,800. The Ability Hand reached 100 patients a year, but the major problem was that the company could not produce enough to meet the demand. Dr Aadeel confirmed that he was planning to ramp up the production numbers. Mark asked how much the company would need to produce 1,000 units annually. The founder estimated a $5 million investment to reach that level.
Robert asked if Dr Aadeel ever pitched to offer equity to people in the medical field. Moreover, Robert wanted to know the feedback the company received from potential investors who did not come on board. Dr Aadeel explained that investors wanted to fund either the robotic or human segments. Several healthcare people refrained from investing in the human segment.
Robert asked about the method of attaching the bionic hand to the limb because several factors had impacted the patients’ experience. Dr Aadeel detached the hand from the socket. He explained that the clinician formed the base or socket for the hand. Dr Adeel further stated that the company only made the hands.
Kevin demanded clarity on sales numbers. Dr Aadeel confirmed that the company made $2 million in lifetime sales. Over $1 million worth of Ability Hands were sold out of this number last year. The company expected to make $2 million in sales in the ongoing year. The previous year’s sales earned Psyonic a profit of $100,000.
Shark’s Response And Final Deal
Mark seemed frustrated by Dr Adeel’s answer, where he claimed that healthcare people did not agree to invest in the human segment. The equation did not add up for him, so he opted out. Robert encouraged Dr Aadeel’s mission to change the lives of disabled people. However, he was skeptical due to the small amount of investment the company could raise. He refrained from joining Psyonic in its journey.
Kevin liked the numbers but did not like the 2% ownership in the business. He demanded 10% equity in the company for $1 million. He added that Psyonic’s growth meant it would need more fundraising, eventually diluting his share in the company. Dr Aadeel seemed reluctant to accept the valuation and asked for other offers.
Lori and Daymond offered Dr Aadeel $1 million for 6% of the equity in the company. They explained that higher shareholding is used to prevent dilution of ownership in the future. Dr Adeel countered them with $1 million for 2% of equity shares and 2% of advisory shares.
Kevin explained that offering preference shares meant that the ownership for the 2% did not get diluted in perpetuity, but Dr Aadeel had to disclose that to his prospective investors. Lori offered $1 million against 2% ordinary equity shares and 2% non-diluted preference shares.
Dr Aadeel gave it a thought and argued that the non-dilution was hard to expect as he would turn Psyonic into a billion-dollar company. Daymond offered $1 million for 5% ordinary shares that were split equally between himself and Lori. Kevin matched the valuation.
Dr Adeel asked if Kevin could join Lori and Daymond. Daymond restructured the offer in case Kevin was to join them. Kevin, Lori, and Daymond were to join together for 2.5% of equity for each Shark. Dr Aadeel struck a deal for $1 million for 6% ordinary shares.
Product Availability
Psyonic developed the Ability Hand to help disabled people live a normal life. The Ability Hand is a bionic limb that can sustain adverse situations without infecting patients. The product had feedback sensors to help patients feel everything. It can be controlled with muscle movement. The body is water-resistant, and the electronic components are rechargeable via USB-C. It can even reverse charge mobile phones and other small electronic devices.
Dr Aadeel demonstrated the durability of Shark Tank, where Surge Anderson smashed a plank of wood. He could feel her daughter’s tender hands and perform the long miles. It was basically an advanced hand put in by the clinician. The product is available on social media platforms because the components are registered with FTA, and everything is covered by Medicare all over the USA.
The technology is advanced and hard to beat because Dr Aadeel has the technical experience and academic capability to sustain the competition. It is difficult for competitors to replicate. However, developing more advanced versions of the product would need fundraising in the future. The product will be a global success if enough and timely funds are arranged. It is not as costly as other bionic limbs on the market. A unit costs $1,800 to make, which is mind-boggling.
Conclusion
Psyonic impressed every Shark, but the technology industry required a lot of investment. In this context, Dr Aadeel did not raise sufficient funds to get Mark and Robert interested. Despite the lack of funds, both the sharks appreciated the cause for which Dr Aadeel was working.
The business idea impressed the other three sharks, but they wanted more equity than the founder initially offered. Equity dilution was the primary concern of all the sharks. However, going from a valuation of $50 million to $16.67 million, Dr Aadeel Akhtar successfully onboarded three sharks in his company.
Hi. I’m Daniyal Durrani. A CA-finalist, CPA-UK, and Master in Economics, with a decade-long business studies experience. I work as an Audit and Business Advisory Manager in a globally recognized accounting firm. I have been watching Shark Tank for a long time and have always admired the innovative business ideas. The revolutionary solutions to unaddressed day-to-day problems presented on the show used to impress me like no other thing on TV. Read more About me.