Business Model
Transaction-Based Revenue Model
Empirica operates on a transaction-based model centered on efficiently handling patient requests at scale. The key components of our business model are:
- Per-Transaction Revenue: We generate revenue for each patient request processed through our system.
- Efficiency-Driven Growth: Our model scales by significantly reducing the time required for doctors to handle patient requests, enabling higher patient volumes.
- Multiple Revenue Streams:
- Direct application in our own clinic
- Licensing to other healthcare providers nationally
- International licensing opportunities
- Scalability: The model is designed to expand across multiple medical specialties and languages, allowing for rapid growth into new markets.
Efficiency Comparison
Traditional Medical Practice
- Patient handling time: 15-20 minutes
- Annual patient incidents per doctor: approximately 4,000
- Total revenue: 2 million NOK
Empirica-Enhanced Practice
- Patient handling time: 1-5 minutes
- Annual patient incidents per doctor: 12,000+
- Total revenue: 6 million NOK+
This dramatic increase in efficiency creates value for all stakeholders while maintaining or improving quality of care.
Revenue Sources and Gross Margins
As owners of the technology, we can deploy it through multiple channels:
- Empirica used in our clinic: 80% of revenue
- Empirica licensing to other national clinics: 20% of revenue
- International licensing: 10% of revenue
Growth Scenarios
Our growth projections are based on three scenarios, each with different assumptions about market penetration and scaling speed.
Conservative Scenario
| Year | Patient Requests | Total Revenue (€) | Cost (€) | Profit Margin (%) |
|---|---|---|---|---|
| 2025 | 12,000 | 540,000 | 585,000 | -8.3% |
| 2026 | 150,000 | 6,750,000 | 2,500,000 | 63.0% |
| 2027 | 500,000 | 22,500,000 | 8,500,000 | 62.2% |
| 2028 | 1,100,000 | 49,500,000 | 15,500,000 | 68.7% |
Moderate Scenario
| Year | Patient Requests | Total Revenue (€) | Cost (€) | Profit Margin (%) |
|---|---|---|---|---|
| 2025 | 12,000 | 540,000 | 585,000 | -8.3% |
| 2026 | 300,000 | 13,500,000 | 4,500,000 | 66.7% |
| 2027 | 1,500,000 | 67,500,000 | 22,500,000 | 66.7% |
| 2028 | 2,200,000 | 99,000,000 | 33,000,000 | 66.7% |
Aggressive Scenario
| Year | Patient Requests | Total Revenue (€) | Cost (€) | Profit Margin (%) |
|---|---|---|---|---|
| 2025 | 12,000 | 540,000 | 585,000 | -8.3% |
| 2026 | 600,000 | 27,000,000 | 9,000,000 | 66.7% |
| 2027 | 3,000,000 | 135,000,000 | 45,000,000 | 66.7% |
| 2028 | 3,300,000 | 148,500,000 | 49,500,000 | 66.7% |
Go-to-Market Strategy
Our go-to-market strategy is designed to validate our solution in a controlled environment before rapid expansion:
- Launch: 2025 at our own clinic
- Initial focus: Muscular-skeletal symptoms
- Expansion: Fatigue and gradual addition of other services
This approach allows us to demonstrate efficacy, refine our system, and build credibility before scaling to additional specialties and markets.
Exponential Growth Potential
Empirica facilitates exponential growth with profit, which is a unique opportunity. While many high-growth companies prioritize customer acquisition over profitability, our model enables both rapid scaling and strong profit margins. Our per-transaction revenue model means that growth directly translates to increased profitability once we exceed our operating costs.
Key Performance Indicators
We will track the following KPIs to measure our success:
- Number of patient incidents per period (day, week, month)
- Patient satisfaction rating
- Doctor satisfaction rating
- Total revenue growth
Exit Strategy
We anticipate several potential exit opportunities for investors within the next 5-7 years:
- Initial Public Offering (IPO): As we expand our market presence and achieve significant revenue milestones, we may consider taking the company public.
- Strategic Acquisition: Given the value of our technology and market position, we may become an attractive acquisition target for larger healthcare or technology companies looking to expand their digital health offerings.
- Private Equity Buyout: As we scale and demonstrate consistent profitability, we may attract interest from private equity firms for a leveraged buyout.
The exact timing and nature of the exit will depend on market conditions, our growth trajectory, and the overall healthcare technology landscape. Our focus remains on building long-term value for all stakeholders.