Ping4Help develops an effective communication tool between people who need help and those who will provide the help needed. Our initial focus is on the hospital and healthcare sector, but in the longer term we will look at the opportunity in other sectors.
We have conducted successful tests and demonstrations of the app in a hospital, and based on the good results, we now want to finalize the app so that we can move forward with commercialization.
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Why invest in Ping4Help?
There are several reasons to become a co-owner in Ping4Help:
The market potential.
We know the Norwegian hospital sector and market well and have entered into an agreement with Vestre Viken Helseforetak for testing and dialog with employees about the solution. In addition to the potential in Norway, there is a need for a more efficient and flexible system in both the Swedish and Danish markets. We have also received confirmation of interest from other markets in Europe (Italy, France and Germany).
Have the expertise to build the service.
The platform can be built in several steps and the digital version requires a relatively limited effort. We have the expertise required to manage the project and to develop and test the system, together with a long-established network of competent IT development. This will provide a high quality product and service.
Flexible and scalable product.
We will build an app and platform that can easily be adapted to new markets, sectors and languages. In addition, it must be prepared to be integrated into existing IT and security systems and/or function as a cloud service or in a separate local Wi-Fi network. Sectors beyond the healthcare sector are for example: the hotel industry, the real estate industry, or car rental. The core of the idea is that the recipient can have a direct connection with the helper.
Opportunity to join at an early stage.
By joining the company early in the company's development, you will be able to take part in an exciting journey in the early stages of development, while at the same time envisioning a pleasant value journey for investors in the long term.
The market potential is attractive and there is a pressing need to secure future personnel requirements in the healthcare sector.
Our solution is a digital tool that should have been available in hospitals several years ago. Improving the service to patients and making work easier for nurses has always been a high priority, but when it comes to the classic alarm button, it turns out that little has happened in recent decades.
We see good opportunities to grow organically and at the same time believe in rapid development in several markets with a larger capital injection.
"For our hospital, this will greatly improve communication between patients and staff, and nurses can free up a lot of time by not having to "run" to their patients when they pull the cord. And they can provide more qualitative and personalized service to patients. For patients, this will result in much better communication with staff."
Special Advisor, Clinical Director's Staff, Kongsbergs Hospital, Vestre Viken HF
The time is right for the introduction of a new modern digital alarm function. As more and more hospitals begin to digitize parts of their communication and smartphones are used more as a means of communication, we see the opportunities for smart apps opening up on a broad front.
Flexibility in peace, crisis and war
Fixed alarm buttons do not have sufficient flexibility to respond to rapid changes in patient numbers or restructuring - a phenomenon that was particularly evident in most hospitals during the recent pandemic where large numbers of patients had to be placed in corridors and constantly moved around.
In its simplest form, Ping4Help only requires a wireless network to connect patients with nurses and can thus also be used in field and war hospitals that need to be quickly set up, moved and dismantled.
From a longer perspective, we see opportunities in several sectors within the healthcare and other sectors, such as hotels.
The problem in the healthcare sector
Today, when a patient pulls the cord/pushes the alarm button, staff have no way of knowing if it's an emergency, if the patient has a question or wants a glass of water, for example. Thus, staff must first go to the patient's bedside to ask for a glass of water or when lunch is served. The glass of water must then be fetched and brought to the patient. If the patient had been able to report their need right away, the employee would have been able to bring the water in an operation and saved a lot of time. If the patient had been able to ask questions digitally about the lunch, he or she could have received the answer digitally. The simpler types of assistance can be performed by assistants while the qualified nurses can focus on more advanced medical assistance operations.
A standard wall-mounted alarm button by a hospital bed generates a lot more running around and time than a mobile digital solution that can provide additional information to staff where they are. It's also easy to calculate that a fixed installation of one alarm system with equipment and cabling is a far more costly solution, and one that offers little or no flexibility.
Our app divides the need for help into three levels, where the highest emergency alarm level is the same as it has always been with the fixed alarm buttons - "Need help now". The two lower levels are divided between pure questions and the need for assistance at the bedside.
This means that everyone on the ward knows that an emergency alarm is serious and the patient needs help immediately. This knowledge contributes to increased patient safety, as it is common knowledge that a patient who uses the current alarm solution frequently with questions or has a high need for assistance at the bedside risks not being prioritized as it can be wrongly assumed not to be urgent.
When you know the patient's needs, our solution provides good opportunities for task sharing between several professional groups, as the right person can provide the help/answer the patient needs. In addition, considerable time will be saved by not having to run back and forth several times for the same request.
"A preliminary assumption is that time equivalent to 10 minutes per patient per shift at a ward can be freed up. Accumulated for Vestre Viken HF with 214,000 bed days, for example, this would represent a potential efficiency improvement of approximately NOK 48 million."
Stein-Are Agledal, General Manager Ping4Help AS
The story behind the idea
Johan, 11 years old, from Asker, was hospitalized for surgery on several occasions in 2019-2020. He spent many days and nights in his hospital bed, and his mother Kerstin was the parent best placed to sit by his side in the hospital. It quickly became apparent that the only way to communicate with the nurses was with the alarm button on the wall. Sometimes it had to be used frequently, but (not unexpectedly) rarely for serious medical needs.
The idea of an alarm button divided into three different levels was born by Johan and mom Kerstin.
A simple comparison after only two days of stay showed that only 7% were for acute need for medical assistance (a single occasion), 37% dealt with less acute needs at the bedside (e.g. at the bedside (e.g. a new extra pillow at night) and as many as 56% dealt with simple questions that didn't really even require a nurse to come at all if they could answer digitally - (e.g. asking when lunch is served).
A few months later, an idea competition was announced in the healthcare sector by the development company Invent2 in Oslo. Johan and Kerstin wrote down their idea, submitted it and crossed their fingers. The idea for the new shared alarm function won an honorable share of second place and the concept was then developed into Ping4Help.
We are five entrepreneurs with successful projects and results behind us in multiple sectors: IT development and delivery, management, sales, marketing, communications, hospitals and healthcare, cleantech, renewable energy, sustainability and human resources. Each of us has over 30 years of combined experience and we complement each other through our different areas of knowledge.
Kerstin has 30 years of management experience from the IT sector (system development, solutions for the tourism sector, and the healthcare sector (administration and organizational development). Linkedin
Stein-Are has over 30 years built up extensive expertise in healthcare management through his senior management positions in the Norwegian healthcare system. He is widely recognized for his innovative leadership style and his focus on patient follow-up. Linkedin
Dag Arild Hansen
Dag Arild has 15 years of experience from the IT sector (software development, project management, contract work, sales support and business development) as well as 15 years of experience from business management, project management and business development related to the establishment of new renewable energy. Linkedin
Patrik has decades of extensive consulting experience in system design and software development. In recent years, his clients have mainly been start-up companies with technical solutions based on state-of-the-art technology. Linkedin
For 30 years, Björn has gained international recognition for his expertise and creativity in communication and concept development, both in connection with commercial and non-profit projects. He now focuses on international assignments that operate within the UN Agenda 2030. LinkedIn
Our business model is simple; our goal is to deliver an app-based solution for communication between patients and hospital staff, initially in Norwegian hospitals.
We will follow a normal license structure with a license fee that depends on the size of the hospital. The size of the hospital is defined by how many employees it has, and we have divided the hospitals into classes based on size, and the hospital pays a sum per employee based on which class the hospital is in. Many of the systems used by the South-Eastern Norway Regional Health Authority follow license models based on the number of users. Ping4Help has therefore also chosen this model.
This makes it possible to use the model for parts of the hospital, such as sections, departments, clinics, etc. It is difficult to count the number of employees at the health trusts as employment relationships are often complex with employees working part-time, extra personnel, etc. Therefore, these are used in conjunction with the term LTO (Salary and deduction statement). Everyone who has a salary payment from a hospital receives a salary and deduction statement. This also gives a picture of how large the hospital is.
The license fee can be reconciled annually based on the number of LTOs so that we capture growth or organizational changes. The size of the hospitals in the South-Eastern Norway Regional Health Authority varies between approx. 2,000 LTOs to 30,000 LTOs. In total, there are approximately 94,000 LTOs in Helse SØR.
In the first few years, the customers will be hospitals within the South-Eastern Norway Regional Health Authority. Ping4Help has good knowledge of how procurement and structures for implementing new systems work there, and our business model is adapted to that structure. The price to the hospital includes both apps, setup of the solution, maintenance and updates, and system support.
In addition to revenue based on size, a project will be set up for a new implementation at a hospital that includes installation, support, setup and training. Ping4Help will charge by the hour and thus also have project revenues.
Changes may be made in the form of new versions, new functionality and new modules based on our development and customer feedback. Customers will probably be involved in the improvement work, as is currently the case with other suppliers. Hospitals choose new functionality in addition to the standard delivery, and the license fee is adjusted accordingly.
Based on our experience of the healthcare sector, there are good grounds for saying that customers will both participate in the further development of the product and co-finance this.
The picture shows an increase in the number of users. The health authorities are governed by annual budgets, so we assume that it will be slow at first, but will quickly increase as soon as we have the solution in place.
The business model provides increased gains over time. Eventually, the cost of development will decrease and Ping4Help will have revenues from annual licenses that do not require much follow-up. License revenues will increase with the number of hospitals that use the product. Initially, it will probably only be individual departments, but eventually it will be larger and larger hospitals. The payment solution for the implementation projects will provide good revenue and cover the cost of this type of activity.
Our most important milestone was demonstration and testing at hospitals within the Vestre Viken hospital region during December 2022
2022: Conducted tests on smaller units and the idea has been presented to nurses from several countries in Europe and the US with the same immediate positive response. The next major milestone is continued development of the app.
2023: Development and testing of version 1.0 (October). Delivery of version 1.0 (December) adapted for operation via cloud service.
2024: Development of version 2.0 and adaptation for secure operation integrated into the hospitals' own systems behind firewalls (March). First sale with testing to a department/clinic in Vestre Viken HF
2025: Sales to several hospitals within Helse Sør-Øst RHF and initiation of presentations in other markets.
2026 - 2029: During the period, we assume regional agreements with the 4 health regions (RHF's) with roll-out in all the country's hospitals. At the end of the period, there will be a focus on Swedish hospitals.
Strategy and objectives
Our first goal is to complete a basic version of the product. This will contain basic functionality that is desired by representatives of the healthcare sector. Reference is made here to the testbed process for Vestre Viken HF, described above and in the Value assessment section. The basic version will also be designed for extensions and integration with other systems. This is done through the greatest possible use of standard interface solutions and a flexible software architecture, which is realized with the help of widely used development tools.
Simultaneously with the development of the basic version, a sales process will take place to enter into an agreement for a pilot installation, preferably at a hospital or clinic that is part of Vestre Viken HF.
The capital raised through the issue will finance the process of finalizing the base version and conducting a successful pilot installation, including a period of functional and technical testing and verification in an operational environment (production environment). This will form the basis for further license agreements and roll-out of the product within the Norwegian healthcare system. The primary target group will be hospitals/clinics within Vestre Viken HF and other parts of the South-Eastern Norway Regional Health Authority. Subsequently, the strategy is to establish agreements with the Norwegian regional health authorities (RHFs), which will significantly escalate the number of licenses and installations of the product. During this period, the company plans to make appointments to ensure that the company has a staff of core resources working full-time on development, productization, testing, marketing, sales and deliveries. These hires will initially be made in 2025, while in the period 2027 to 2029 it is planned to further expand this staff.
From 2028-2029 onwards, the plan is to introduce the product in the Swedish market and eventually also other Nordic markets.
This description has so far included a scenario of organic growth. At the same time, the market for software solutions for the healthcare sector is dominated by a number of large players. The strategy is to establish a partnership with one of these suppliers so that our product can be integrated into their product portfolio. This will open up completely new opportunities to introduce the product in new markets and escalate the number of customers significantly. How long a process for establishing such a partnership will take, and which partner is most relevant, cannot be clearly defined at present. However, establishing this process will be a key element in our strategic thinking and will guide our priorities in the years to come.
The company's team (of which 3 out of 5 are Swedish) has an extensive network of contacts in Sweden. This means that Sweden is being considered as our next market.
Security and privacy
Our strategy is based on experience from implementing new systems in the Norwegian (and Swedish) hospital sector. Since confidentiality and security issues are of the highest importance in the hospital sector, the platform is designed to satisfy different levels of these two requirements.
In its simplest form, a system can be set up with encrypted traffic between Helpee and Helpers via cloud services and without storing any kind of sensitive patient data other than positioning and possibly Helpee's identity in the form of nicknames or initials.
In the longer term, platform and system requirements will be compatible for integration with existing internal systems and installed locally behind firewalls.
The domestic market is prioritized until a safe and stable product is tested through use by several customers for at least one year, after which customers in other markets are invited.
Our primary market will initially be the country's 40 hospitals, and we plan to start with Vestre Viken HF.
Based on experience from hospital operations, we assume that using the product saves 30 minutes of unnecessary "running" per patient per day (per bed day).
Example: For Drammen Hospital, which has 92,000 bed days per year, 46,000 hours per year will be saved. This amounts to 28 FTEs per year, i.e. an annual saving of approximately NOK 21 million, and NOK 48.8 million for the health trust's hospitals per year.
The Norwegian Health Personnel Commission has pointed out that we risk a major shortage of health personnel in the future, and that one of the strategies to meet this is to change the division of tasks in hospitals and to work smarter with, for example, the introduction of new technology. The market is therefore large and should be very interested in a product that can free up significant time for much-needed healthcare professionals
Our experience from the healthcare sector indicates that when a number of hospitals report good experiences with a product, this will normally result in a joint purchase from one or more of the large regional health authorities (RHFs). This means that the product will be adopted by tens of thousands of new users, and the company will thus radically increase its market share.
There is also significant market potential for other types of healthcare institutions, including nursing homes, nursing homes, rehabilitation institutions, etc. Private hospitals are also a relevant customer group.
The other Nordic countries are similarly relevant, as the public health sector is organized in a similar way as in Norway in all these countries. There are also generally great cultural similarities between the countries. The Nordic countries have a combined population of over 27 million. This represents a huge potential for our product.
Moreover, the same type of problem that our product addresses exists in all countries with hospitals of a certain size. This represents a significant potential.
It should also be mentioned that the product is designed in such a way that it can easily be adapted to other sectors. In the long term, the hotel sector, car rental and several other sectors are relevant markets. The product has already been tested among staff at a Swedish hotel company, with positive feedback.
So far, we have not identified any direct competitors. We see the rapid development of digital health services as opportunities for integration of Ping4Help with other systems (digital logistics solutions, remote monitoring via video and similar systems, etc.) Patient safety and confidentiality will be one of the most important criteria for how further development of the Ping4Help service is carried out and which markets are focused on.
A budget has been prepared for the period 2023 - 2029 that envisages a strong percentage increase in operating profit over time, with a profit of 52% in 2028 and 60% in 2029. Both revenue and profit will escalate further, provided that the market develops in line with our assessment.
The company's budget is based on thorough and detailed processes for the introduction of the product in a number of hospitals, both to meet safety and quality requirements, but also to gain experience for use in further marketing and sales.
The budget has been set up over 7 years due to the long processes involved in healthcare procurement. This is also linked to the fact that handheld devices (phones and tablets) will be increasingly introduced in the years ahead. It is then important to get in at the right time. Furthermore, there is a strong emphasis on security, quality and privacy in the healthcare sector. This means that extensive testing and quality assurance for new customers is important.
The budget is based on a capital increase through Folkeinvest of NOK 2.5 million. When the first paying customer is in place, we expect a new issue of NOK 4 million.
The budget envisages a strong percentage increase in operating profit over time, with a profit of 52% in 2028 and 60% in 2029. Both revenue and profit will escalate further, provided that the market develops in line with our assessment.
The company is initially self-financed and currently has a share capital of NOK 37,500. The company has 3,750,000 shares with a nominal value of NOK 0.01, where the team behind the company has an ownership interest of 20% each. Shares have been subscribed with a total premium of NOK 52,500.
In addition to this, the company has loans from two of the shareholders, Kerstin Aabakken and DACap AS. Each of these loans amounts to NOK 75,000, meaning that the company's total loan is NOK 150,000. This will be repaid after the share issue.
What will the capital be used for?
The purpose of this share issue is to secure capital for further development of the product from, so that a basic version is established based on the current functional design, system philosophy and software. Furthermore, the plan is that this basic version will be installed and tested at a pilot customer, which will be continued in the first commercial license agreement.
If the company does not succeed in raising capital beyond the minimum amount, there may be a need to initiate issue no. 2 (see below) at a somewhat earlier stage. If the company succeeds in raising the maximum amount, the company will correspondingly be able to delay issue no. 2 somewhat.
It is also considered highly likely that we will be able to secure partial financing in the form of soft funding of NOK 250,000 in 2024. This will be via Viken County Council's program for regional development. We will also apply for other soft funding, including funds from Innovation Norway's "Grants for commercialization" scheme.
In order to be able to escalate further marketing, sales and delivery, a further issue (issue no. 2) in the order of NOK 4 million is then desirable.
In connection with the issue via Folkeinvest, the board and management of Ping4 Help AS have carried out a valuation of the company. The valuation has been prepared internally and is based on the company's own budgets and forecasts as well as the company's resources, goodwill and market position. The Board of Directors has arrived at a value of the company before the share issue of NOK 13.875 million. The following has been used as a basis for the valuation of the company:
The company and the team:
The founders behind the company are all experienced professionals who complement each other, who possess a high level of expertise and who have a strong belief in the product. This in itself constitutes significant value.
Product development status:
The development of the software product has been ongoing since April 2021, amounting to approximately 2,000 man-hours. The product is now available in a demo version. It is the assessment of the Board of Directors and management that the product philosophy, functional design and technical assessments have added significant value to the product over and above the man-hours invested.
Testbed agreement - Vestre Viken HF:
Through the collaboration with Vestre Viken HF, we have established a "Proof of Concept" and obtained very positive market feedback, which in the opinion of the Board of Directors and management both reduces the risk associated with an investment in the company and strengthens the product's credibility and the company's market opportunities.
Forecast and budget:
The budget forecasts a strong percentage increase in operating profit over time, both sales and profit will escalate further, provided that the market develops in line with our assessment
Based on experience from hospital operations, we assume that potential annual savings for Vestre Viken HF amount to approximately NOK 48.8 million. This means that the potential annual savings for the entire Norwegian health sector are up to NOK 700.5 million. Beyond this, the market potential in the Nordic region is huge, as the Danish and Finnish healthcare sector is the same size as the Norwegian, while the Swedish is about twice as large. In addition, we see major opportunities in field hospitals and hospital hotels, as well as ordinary hotels.
Please refer to the attached valuation document for further details on the various points.
As described in the section "Strategy and objectives", the market for software solutions for the healthcare sector is dominated by a few major players. In the long term, we want to establish a partnership with one of these suppliers so that our product can be integrated into their product portfolio. This will open up completely new opportunities to introduce the product in new markets and will significantly escalate the number of customers.
At the same time, this will open up several possible exit solutions for shareholders. This could include both the sale of shares to other investors and a merger with a larger player.
We assume that such a transaction will be carried out at a time when we are certain that shareholders will receive a significant return on their investment.
Any investment in shares is associated with risk. If any of the risk factors, including those listed below, were to materialize, it could have a negative impact on the company, including its current and future operations, earnings, liquidity and financial position in general. This means that the value of the shares may be reduced, so that investors may risk losing all or part of their investment. An investor should not invest in shares if he or she cannot afford to lose the entire investment. The risk factors presented below are considered to be particularly important, but do not provide an exhaustive description of the overall risk picture.
Economic and financial risk
A conservative sales forecast has been used as a basis for the company's development. However, we know that sales to the specialist health service can take time with relatively long decision-making processes, with the risk of delayed revenue.
There is a risk that costs and time for development are not according to plan.
The above-mentioned areas may result in a risk of more financing before the first paying customer
Measures to address financial risk
a) Early on, work broadly with several health enterprises.
b) Put a lot of effort into early success at one hospital, creating awareness and interest
c) A good plan for incremental development within available finances
d) Prepare a new financial round as soon as we are ready with this.
A market primarily within the public sector and healthcare companies has no risk associated with customers not meeting payment obligations
The company is not aware of any similar products in the market, and there is therefore minimal risk associated with competitors.
The health trusts are in a very strained financial situation and there may be a risk related to the willingness to invest.
Measures to address market risk
Highlight through examples (and possibly follow-up research) how much potential for efficiency improvements each health enterprise has.
The company has broad expertise in management, technology and understanding of laws and regulations.
If the product is to be integrated with the health trusts' IT systems, there is a risk of encountering privacy and security challenges.
Measures to address operational risk
Help ensure that qualified risk and vulnerability analyses are carried out.
Ensure that patient-sensitive data is handled in accordance with laws, rules and regulations.
To the extent that third parties are involved in development, this must be done in such a way that patient data is kept within the country's borders and the company must ensure that laws, rules and regulations are followed.
There will always be a risk associated with a political dimension. In the public sector and specialist health service, it may be linked to financial and organizational matters. However, the company has no knowledge of processes that will affect the ability to sell the product. It is unlikely that political processes will pose a risk to marketing and sales.
There will be additional risk in owning unlisted shares, as their liquidity is limited.
Welcome as a shareholder!
This is an exciting project with great financial potential. Of course, we see many commercial opportunities ahead, but perhaps even more important in the longer term - new opportunities to simplify and improve the soft values between those who seek help and those who deliver it.
If you have any questions or input, we'd love to hear from you:
Chairman of the Board:
Stein Are Agledal