SoftBank-Backed Cancer Detection Startup May Go Public as Soon as 2023

A company backed by SoftBank is considering an initial public offering in Tokyo.

The founder and CEO of the Japanese startup said in an interview that the company is in talks with the Tokyo Stock Exchange about an IPO.

Iterative Scopes Inc., which is based in the US, is one of the company's competitors.

Despite a broader tech downturn, investors are still interested in medical technology. According to Brendan Burke, a senior analyst for emerging technology at PitchBook, venture capital investment in medical diagnostics will grow to $5.8 billion in 2021. He said in an email that there was $1.2 billion invested in the first quarter.

When the timing is right, we would like to go public, but the IPO plans are in a state of change. It doesn't have to be in Japan. Depending on how our business is doing overseas, we could be on the verge of a listing on the stock exchange.

Gastrointestinal cancer, which accounts for more than a third of cancer deaths worldwide, has been a focus of investor attention. Iterative Scopes raised over $194 million and achieved a post-money valuation of $700 million. 20% to 40% of such cancers are missed by doctors.

SoftBank led an 8 billion yen funding round for AIM in April, making it the Vision Fund's third investment in its home country. The sum was more than double what AIM was looking for after a 30-minute meeting between Tada and SoftBank founder Masayoshi Son.

AIM is looking for contracts from Japanese hospitals. The launch of its product will depend on approval from Japan's Pharmaceuticals and Medical Devices Agency. The company said that pricing could change depending on regulatory approval.

The majority of doctors don't believe in the use of technology in medicine. According to a study presented to the US Food and Drug Administration, artificial intelligence is either inconsistent or never works. Many people will be unfamiliar with a subscription model.

But Tada thinks there's a lot of unmet demand. The global market for artificial intelligence diagnostics is five times larger than Japan's, according to him. The company opened an office in Palo Alto, California, in January. Taiwan, Hong Kong, Thailand, Vietnam and India are some of the countries AIM will target in its international expansion.