Dr. Aadeel Akhtar pitches Psyonic, his bionic artificial limb company, in Shark Tank episode 1516. Akhtar has advanced degrees in mechanical engineering aand neuroscience. He got the inspiration to create such a business when he was only 7 years old. While visiting his parents’ native Pakistan, he saw a little girl his age without one leg. From that day on, he knew what his life’s work would be.
The flagship product of Psyonic is the Ability Hand. The distinguishing factor of the Ability Hand lies in its innovative utilization of multi-touch feedback sensors implanted within the fingertips. This characteristic enables users to experience sensations via vibrations, providing an unprecedented level of sensory response in bionic prosthetics. Engineered by Dr. Akhtar and his team, the hand is crafted to be lightweight, resilient, and exceptionally accurate, ensuring users can execute tasks effortlessly and with assurance.
Driven by a commitment to accessibility, Psyonics has worked tirelessly to ensure that the Ability Hand is not just a technological marvel but also an affordable option for those in need. By utilizing cost-effective materials and manufacturing processes, they have succeeded in lowering the price point to a level where it is covered by Medicare, vastly expanding access to this life-changing technology. The cost is between $10,000 and $20,000. He likely wants a Shark’s cash for manufacturing.
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Psyonics: Revolutionizing Prosthetics
Psyonic Shark Tank Recap
Dr. Akhtar enters the Shark Tank with Sergant Garret Anderson who has an Ability Hand on his right arm. The doctor is seeking $1 million for 2% equity in his company. Psyonic develops advanced bionic limbs that are accesible to both humans and robots. When he was 7 years old, the doctor met someone who was missing a limb for the first time. She was his age, living in poverty in Pakistan where he was visiting. She was missing her right leg and she was using a tree branch as a crutch. That’s what inspired him to go into this field and that’s why he developed The Ability Hand.
It’s the fastest bionic hand on the market and the first to provide touch feedback to users. You can control it with your muscles like Sergant Anderson. The hand is waterproof and USB rechargeable. You can even charge your phone from your hand. The Ability Hand has made a big difference in the lives of its users. Sergant Anderson can actually hold and feel his daughter’s hand in the Ability Hand, something he couldn’t do with any other prosthetic before. He can also take the Ability Hand to the extreme. At this point, Sergant Anderson breaks a board with his Ability Hand and the Sharks shout in amazement.
The Ability Hand isn’t just for prosthetics, it’s also being used on robots all around the world, including at major tech companies and even in missions into space. The doctor asks the Sharks “who wants to join the bionic revolution and change the world one hand at a time?”
Examining The Ability Hand
Sergent Anderson introduces himself to the Sharks. He lost his hand his arm in Iraq in 2005 from an improvised explosive device. He used a lot of prosthetics in his 18 years as an amputee. They’re too heavy, too slow and no durable. The bionic hand has really changed his life and given him a new way to interact in society. Mark thanks him for his service.
Lori asks the doctor how he came up with this. After he met that girl in Pakistan, he got a bachelor’s degree in biology at Loyola. Next he got a Master’s Degree in Computer Science and another Master’s in Electrical and Mechanical Engineering. He also got a PhD in Neuroscience and then he went to Medical School. When he was a graduate student, he started 3D printing the hands.
Let’s Talk Numbers
So far, he’s raised $3.6 million. He’s also in the midst of a StartEngine campaign where he hopes to raise another $2 million. They raised $1.4 million at a $12 million valuation and $2.2 million at a $15 million valuation. They raised $2.4 million in grant funding and they should be getting another $2.7 million next year from the Department of Defense. Mark questions why they used StartEngine and the doctor says they make half of their sales from social media.
It’s an FDA registered device that’s covered by MediCare. Before this hand came along, only 10% of patients could afford it. An Ability Hand costs $15,500 and they cost $1800 to make. They currently have over 100 patients but the problem is there is more demand than what they can produce. He wants to start ramping up production to meet demand. Their production capacity is currently 100 hands per year. Next year, they’re looking to do 500 and 1000 the year after that. Doctors who work with prosthetics are taking all they can make. To get to a capacity of being able to make 500 units per year will cost $5 million. When he pitched robotics investors, some didn’t care for the mission for humans.
I Anybody In?
Mark has a hard time believing health care equity investors didn’t bite on this because it’s something that changes lives. Something doesn’t add up for Mark; he’s out. Robert talks about Noah Galloway from his time on Dancing With the Stars. Noah lost his arm and his leg, so Robert knows the pain of being an amputee. There are a lot of issues like infections. Robert asks how the hand attaches. The prthetist makes the socket for each amputee and Psyonic attaches their hand to it. Robert is big into this space. He thinks it’s an incredible mission, but he’s out.
Kevin wants some clarity on numbers. Lifetime sales are $2 million. 2022 sales were just over $1 million and they profitted $100,000. This year they’ll make around $2 million. Kevin says he doesn’t get out of bed for 2% because he knows he’ll get diluted as they raise more money. He offers $1 million for 10%. That’s too high for the doctor. Daymond and Lori team up to offer $1 million for 6% and they don’t want to be diluted. The doctor counters with $1 million for 2% plus 1% each in advisory shares. Kevin explains preference shares (shares that can’t be diluted) and the problem those type of shares pose for other shareholders. Daymond and Lori say they’d accept the doctor’s offer if the shares are non-diluted. The doctor counters with $1 million for 4% with non-diluted shares. Kevin wants in on the deal with Daymond and Lori but at 6% for $ 1 million (2% for each Shark) and the shares may be diluted. Doctor Akhtar accepts.
Psyonic Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. It turns out the company’s StartEngine Campaign the doctor mentioned during his pitch to the Sharks only raised $1,065,170.94. In May, 2024, Psyonic partnered with EastPoint Prosthetics & Orthotics and Advanced 3D, Inc to make custom-made prosthetic sockets for the Ability Hand. The partnership has the goal of making advanced bionic limbs more accessible and affordable. As of the first re-run of this episode in June, 2024 – about 3 months after the original air date – there is no evidence the deal with the Sharks closed. The company, at this time, is valued at $65.07 million.
The Shark Tank Blog will follow-up on Chirp & Dr. Aadeel Akhtar as more details become available.
