20/20 GeneSystems is the developer of diagnostic testing tools for cancer and other diseases. Keep in mind that this startup leverages AI (artificial intelligence) for its systems. Oh, and you can also invest in 20/20 GeneSystems stock through an equity crowdfunding campaign on SeedInvest.
The founder and CEO is Jonathan Cohen. During his career, the former patent attorney he has raised more than $15 million in equity capital for a variety of ventures. He has also been able to strike sales and marketing agreements with Fortune 500 companies like Johnson & Johnson (NYSE:JNJ), Abbott Laboratories (NYSE:ABT) and Ping An (the largest health insurance company in China).
Key Global Partnerships
According to the investment materials from 20/20 GeneSystems, the company believes it is the only one to launch a multi-cancer screening test that is based on AI. The result is that a patient can get early detection, which greatly increases survivability. For example, according to a wide-ranging study published in the New England Journal of Medicine, the survival rate for lung cancer was over 90% when there was early detection.
Note that 20/20 GeneSystems has its own CLIA-certified laboratory for the U.S. market. There are also partnerships in Asia, Europe and the Middle East.
OK then, here are the diagnostics that the company offers:
- OneTest: This is targeted for six common types of cancers, including as for lung, colon, kidney, and ovarian. The marketing of this test started last year
- PAULA’s Test: This is a diagnostic for those who have a high-risk of lung cancer due to long-term smoking.
- BioCheck Suspicious Powder Screening Kit: This is a low-cost test to detect whether a powder contains biological material that could cause problems with screening. Note that BioCheck is generally used by early responders.
So what about anything for the novel coronavirus? Well, the company does have something. And yes, this should be a driver for 20/20 GeneSystems stock.
The company’s diagnostic is called CoronaCheck, which was developed by Roche Diagnostics. It tests for two types of antibodies of the virus. So far, 20/20 GeneSystems has sold over $1.2 million of the CoronaCheck tests. The company also has plans to enhance the diagnostic by using a lateral flow stripe to enhance the effectiveness of the AI.
Bottom Line on 20/20 GeneSystems Stock
Before the crowdfunding round, the company was able to raise about $5.5 million. Consider that one of the investors was Ping An, which invested $2 million. This could mean a big opportunity for distribution of 20/20 GeneSystems’ diagnostics. Ping An has about 300 million subscribers to its mobile app.
As for the crowdfunding investment, this has been tracking nicely. So far, the company has raised over $2.4 million and there are more than 800 investors. The valuation has been set at $38.5 million.
The minimum investment is $502 per share and the equity is in the form of preferred stock (this means that investors will get first dibs on the money invested if there is a liquidity event, such as an acquisition). There are also various perks, which are based on the amount committed. For example, if you invest between $1,500 and $4,999, you will get one free OneTest for cancer and a COVID1-19 antibody test.
Despite the success, 20/20 GeneSystems certainly has notable risks. After all, this is the case with any private investing deal. For example, because of the COVID-19 pandemic, the company has not been able to pull together its financials for 2019. Next, the market for diagnostics is intensely competitive and there are large companies in the space that can devote substantial resources to new approaches. Keep in mind that 20/20 GeneSystems has only 18 employees.
In other words, before making an investment in 20/20 GeneSystems stock, its advisable to do your own analysis.
On the date of publication, Tom Taulli did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Tom Taulli (@ttaulli) is an advisor/board member for startups and author of various books and online courses about technology, including Artificial Intelligence Basics, The Robotic Process Automation Handbook and Learn Python Super Fast. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks