By: Iftach Weiser
CEO

OpenMind360

OpenMind 360 has developed an innovative, interactive VR platform that deals with mental distress problems of teenagers. A unique application of VR movies allows teens to experience 360-degree social scenarios using VR glasses. OpenMind360 has completed a successful pilot in Israel and abroad.

$72,500

Raised so far

10

Investors

20

Days to go
Minimum investment: $5,000
Type: Equity  
Stage: Seed
Category: Software
  • Campaign Highlights
  • Pitch
  • Team
  • Investors 10
  • Updates
  • The Deal
  • Documents
  • Disclosures

Campaign Highlights

A breakthrough technological solution for dealing with mental distress in the digital age

OpenMind 360 provides a breakthrough in the psychotherapy field, with an innovative VR platform that helps challenge depression and anxiety symptoms among teens. The use of advanced VR technology enables the company to provide a unique and first-of-its-kind solution to the growing problem of mental distress and depression in the era of social media and smartphones.

Proven achievement - a successful pilot and contracts with the Ministry of Education and leading universities

The company completed a successful pilot with dozens of focus groups in 20 schools throughout the country. Following the pilot’s positive outcome, the company received orders from the Ministry of Education for VR workshops in over 20 additional schools and additional invitations from the IDC Herzliya and Bar-Ilan University for their Psychology and Communication departments. In addition, the Israel Police has purchased one of the 360 VR products for the Youth Visitors Center. The company has also been selected from among hundreds of companies to present at the prestigious D9 conference - an international conference for innovation in the public sector.

 

Strategic cooperation and support from the Israel Authority for Innovation, the Ministry of Education and the Sheba Medical Center

For the past two years, OpenMind 360 has been awarded an R&D grant by the Israel Innovation Authority. OpenMind 360 is in the advanced stages of educational and technological collaboration with Facebook and its subsidiary Oculus (the world leader in VR). The company also received sponsorship from Samsung, which donated the VR sets. The company's workshops were accepted by the Ministry of Education as an approved external program, and are sponsored by the Sheba Medical Center.

A billion dollar a year market and enormous savings for health systems

The AR / VR in healthcare market has grown tremendously over recent years and is expected to reach $5 billion by 2023. OpenMind 360 is the only company in the world that uses interactive VR technology to treat depression and mental and social distress through various simulations. The company offers a unique technology solution for dealing with a problem that causes economic cost of $2.5 trillion a year worldwide.

 

Investing in an important social enterprise

OpenMind 360 is leading an enterprise of tremendous social importance by addressing one of the most serious and growing problems of the past decade - the "age of loneliness". Since the advent of social networks and smartphones, there has been a dramatic increase in the number of people, especially teenagers, who experience symptoms of depression and anxiety to the point of suicidal tendencies. While the community, educational systems and especially parents stand helpless in the face of this difficult issue, OpenMind 360 offers an innovative and creative technological solution that speaks to the youth in their language - the language of media and technology. OpenMind 360 gives teens an accessible and effective tool to help them deal with mental distress and depression, and even save their lives.

A team of experienced experts in psychology, education, design, engineering, and business

The OpenMind 360 team comprises experienced and renowned professionals in a wide range of fields: clinical psychology, education, and social work, graphics and industrial design and technology management. The company's CEO, Iftach Weiser, is a computer engineer with 30 years of international experience in high-tech and business management in global technology companies.

Moreover, the founders of the company all have a family member who is dealing with a mental health issue. Their motivation is personal and emotional and they are passionate about helping teens with OpenMind 360 solution.

 

Pitch

The Idea

The problem

Studies show that 1 out of every 5 teenagers in the world experiences significant mental distress. Only 20% of them will seek treatment due to fear of stigma and lack of knowledge. This problem is drastically worsening in the age of social networking and smartphones, with new studies showing a 33% increase in symptoms of depression, anxiety and mental distress related to suicide in the last five years alone. There has also been a sharp increase in suicide attempts in the Western world.

Today’s market does not offer a practical and effective solution to this difficult problem, and attempts to appeal to youth through traditional methods (school lessons, presentations, etc.) are cynically rejected by them. The educational and therapy systems are seeking the technology and innovation that will help them connect with today's youth, who are usually ensconced in their own virtual world (Instagram, WhatsApp, Twitter, etc.).

 

The solution

Recognizing this need, OpenMind 360 has developed a solution using innovative technological tools that appeal to adolescents in their own language, to create a sense of openness and empathy. Many studies have confirmed the use of VR as a highly effective psychotherapy tool for dealing with post-trauma, various phobias, flight anxiety and more.

The product

OpenMind 360 uses VR movies that describe real-life social and personal situations from the lives of adolescents combined with interactive choices, using the "Exposure Therapy" method. The innovative platform enables an interactive viewing of a 360 degree VR film, in which the viewer influences the development of the plot by active selections throughout the film. The films present familiar social situations (e.g. a conflict between friends leading to a rumor spread via social network), with central points of dilemmas where the viewer must choose how to continue by focusing their gaze, thereby affecting the development of the plot. In this way, the participants' experience of identification is further enhanced by active choices and solutions to situations.

 

The workshop

The VRs can be watched as part of a series of special workshops created by the company, in which the participants discuss dealing with situations that lead to mental distress, such as shaming, depression and social anxiety. Throughout the VR film, young people can identify signs of mental distress and opportunities for assistance to their peers and are required to act and respond in these situations. The VR experience creates empathy in the group and encourages youth to seek professional treatment.


 

Big Data

The OpenMind 360 platform collects answers from questionnaires and VR selections from real-time VRs and stores them in a large central data system for analysis and improvement. The company also intends to collect biofeedback data that will provide additional empirical information on the reactions of young people during the VR activity. Information collected by the OpenMind 360 platform provides a solid foundation for clinical research as well as the development of the next generation of solutions to treat and prevent mental distress.  Naturally, all of the information is anonymous, eliminating data privacy concerns.

 

The technology

OpenMind 360 makes innovative use of virtual reality technology, combining VR 360 with interactive selections that influence the movie's progress, and connects the VR world to the mental healthcare field. The participants' interactive choices are broadcast and stored on central servers in the cloud, enabling the system to analyze and improve tools and methods for coping with mental distress. OpenMind 360 is one of the first to incorporate interactive selections in VR application.

How it works: The process begins with the production of a feature film, describing a situation from the lives of teenagers, and filmed by a dedicated 360 degrees camera (Insta camera at a resolution of K8).

The application developed by the company adapts the film to the VR 360 platform for smartphones (such as Gear VR, Google Daydream, and VR standalone devices such as Oculus Go, and enables its full operation by gazing only. The session includes interactive choices that determine the development of the plot according to the viewer's choice.

The app is installed on a smartphone that is embedded in Gear VR glasses.

The application has full compatibility with Facebook's Oculus Go, providing a better and more convenient user experience.

Data collection: The choices made by the viewers during the film are transmitted from the smartphone via WiFi to a central server in the cloud, gathered anonymously and cataloged by classrooms, schools, regions, and nationwide. The analysis is done using BI tools, such as Microsoft Power BI, while the display uses Tableau tools.

In addition, at the beginning and end of the workshop participants are asked to answer a questionnaire about mental distress that is also integrated into the application and transmitted to the central server in the cloud. The purpose of this is to analyze the participants' change in attitudes and behavior following their experience in the VR 360 workshop.

The application for personal therapeutic treatment will collect personal attributes of the patient, including his response to the VR experience using Biofeedback sensors, this data will be protected and for the use of the therapist only..

The study: The large quantity of accumulated data enables research into the effectiveness of solutions for groups and individual therapy through Virtual Reality and is a valuable resource in the development of effective new applications for therapy.

The company has recently begun academic field research led by senior academics in the field of adolescent psychology from IDC Herzliya and Schneider Children's Hospital.

The research is led by Dr. Dana Feldman-Sadeh, a clinical psychologist at Schneider Children's Hospital, in collaboration with the VR laboratory at the IDC Herzliya, led by Dr. Doron Friedman, who is using the biofeedback measurements.

The study aims to validate the effectiveness of the treatment with VRs in changing attitudes and behaviors of adolescents and preventing mental deterioration.

 

Business model

The company’s business model is based on the management of a  virtual platform for mental health content and VR applications. Over time, it will become a global meeting place where content providers can share information and build, license and sell VR solutions to service providers such as health and educational institutions.

The first stage - Running VR workshops in Israel (2018-2019)

- Running educational workshops in order to gain experience and collect data.  

- One and a half hour workshops - 1200 NIS for a workshop, 2700 NIS for a three-session program.

- The clients are schools under the Ministry of Education, hospitals, independent educational networks, and community educational centers.

- Development of VR-based content for the therapeutic field, focusing on depression and social anxiety.

Stage Two - Working with distributors in Israel (2019 onwards)

- Engagement with partners/distributors who will operate educational workshops on a wide scale in the various educational systems in Israel.

- Establishing a training center that will train and authorize instructors to conduct OpenMind 360 workshops. The workshops will be subject to authorization from OpenMind 360, and the company will collect its share of the workshops. The workshop equipment (VR 360 kits) will be purchased by the operator, with the target price for a workshop to be operated by a distributor - 300 NIS for OpenMind 360.

- Developing VR applications for the therapeutic market under the guidance of mental health professionals and academics and piloting them at a treatment center.

Third stage - international distribution and creation of the virtual platform (2020 onwards)

- To leverage the model to work with distributors abroad, the company will also produce VR360 films in various languages: English, French and Spanish, and the option to produce VR 360 movies in animation and with dubbing. (e.g. for Japan)

- Three models will be examined for overseas distributors:

* Operating license and payment per workshop for the educational market

* Selling of licenses of operation to the therapy market

* Combination of the two

- Creation of a virtual platform to connect mental health content providers with customers. 

The platform will support a variety of applications, not just VR, and will include content such as articles and blogs as well as virtual communities covering topics related to mental health.    OpenMind 360 will create VR applications based on this content and license it to various customers: educational organizations, treatment centers, insurance companies, therapists and patients.

Sales model in the field of education

OpenMind 360 will build interactive VR applications together with training material and license them to educational organizations.  Use of the application will require a license from our servers and OpenMind 360 will be paid a commission for every workshop.

In Israel, the company is in the process of negotiating strategic cooperation with the Ministry of Education, which will undertake the distribution and assimilation of the content in the educational frameworks. This has already started as a pilot, and the responses are positive and promising. In this model, the Ministry of Education is charged for teacher training and for each workshop using OpenMind 360 materials.

Sales model in the therapy field

OpenMind 360 is looking at a model of a periodic operating license (annual), during which period the treatment center will be able to use the platform without limitation. OpenMind 360 will provide a VR content library, technical service, and software upgrades. The therapeutic body will be able to purchase VR kits with OpenMind360 ready-made content, rent ready kits, or equip themselves with kits using OpenMind360 specifications. The company will start collaborations with large treatment centers, headed by medical centers, mental health clinics, and medical insurance companies.

 

Timeline

 

 

 

 

 

 

The Market

VR in Healthcare - general

The use of VR technology in the field of mental healthcare has been gaining momentum in recent years and appears to be the preferred method for treating a wide range of problems. The VR/AR in the healthcare market was estimated at $ 769.2 million in 2017 and is expected to reach $ 5 billion by 2023, with a huge annual growth rate of 54.5%.

Research and Markets Report

 

 

The educational market

The market targeted by OpenMind 360 is the formal and informal educational sector for children ages 14-18. This market is thirsty for technology-integrated educational content, especially content that can connect educators to the virtual arena of social networking.

The focus groups, enthusiastic responses to the pilot and dozens of meetings with many educators show that there is a huge demand for OpenMind 360 content and tools.

In Israel, there are about 14,000 high school classrooms, and the average budget per class for external educational activities is approximately 10,000 NIS per year. In other words, the size of the market in Israel is NIS 140 million per year.

The global education market for Smart Education (EdTech market) is estimated at $60 billion (2016) and growing at a rate of 16% per year.

The therapy market

- According to a study conducted by the American National Institutes of Health (NIH), about 32% of Americans (~ 70 million people) experience a mental disorder during their lifetime.

Mental health is the biggest health care burden on the US economy - more than cancer and heart disease combined. The financial costs to the economy as a result of medical expenses and loss of productivity due to mental distress were estimated at US $467 billion in 2012 and US $2.5 trillion worldwide. 

Direct spending on mental health care in the US reached $239 billion in 2014, up from $121 billion in 2003 and $42 billion in 1986, a five-fold increase over 28 years.

In Britain, the annual cost of mental health care is £28 billion, not including rehabilitation costs.

Mental health care costs for adolescents are about $ 500 billion a year in the world. In Israel, the expenditure on psychotherapy for this population is approximately NIS 750 million per year.

 

Analyzing the therapy market by treatment type

The overall cost of mental health is split between healthcare expenditure, disability benefits and loss of earnings.

A cost analysis done in 2002 in USA shows an overall cost of $317bn which increased to $467 within 10 years (an increase of 47%)

The mental healthcare market in the US is divided among private treatments, medical insurance expenses and government subsidies.

- The market for private therapists is competitive and advanced, and there is a great thirst for the use of technological innovations. The therapists with whom the company met expressed great interest in trying to use virtual reality technology for their clinic.

- Mental Health centers are well budgeted and have a clear interest in improving the treatment by technology tools and data analysis.

- Health insurance companies are an important market segment, estimated at about $50 billion a year. Prevention of mental decline is of great interest to health insurance companies.

- Public expenditure on treatment and rehabilitation of mentally ill people constitutes approximately 57% of the total expenditure on mental health care.

- In Israel, for example, the cost to the National Insurance Institute for the rehabilitation of the mentally ill is approximately NIS 1.7 billion, the cost to the Ministry of Health for treatments in mental health clinics and hospitals is NIS 750 million, and the cost to general hospitals for treatments in mental health departments is NIS 180 million. Total expenditure for State of Israel institutions is approximately NIS 2.6 billion per year.

Mental Health in Adolescents

According to the Medical Expenditure Panel Survey (MEPS) which analyzed the cost of mental health treatment for adolescents in the years 2009-2011, 9.3% of the adolescents in the US consumed mental health treatment  

– around 5 million adolescents a year.  The average annual cost of treatment was $2,192.  In other words, the direct cost of treatment was $10.9bn in 2011.

In comparison, the annual cost of mental health treatments for adolescents in Israel is NIS 750m. 

The most common issue is anxiety.  Around 32% of adolescents experience anxiety and in 8.3% of cases, it leads to severe impairment.

OpenMind 360 is the only company in the world that addresses the market of therapeutic VR for depression and social anxiety among adolescents. The MEPS report indicates that among the adolescents who receive mental treatment,

15.4% suffer from depression while 10.1% suffer from social anxiety.  Thus we aim to focus on 25.5% of the treatment for adolescents in the US, representing a market of $2.7bn in the US alone.

Among the common treatment types for anxiety, the most effective in terms of cost-benefit are Counselors and Marriage and Family Therapy (MFT). These types of therapy are provided through clinics and these are where we will focus our marketing efforts.

Go-to-Market

The GTM Strategy reflects the company’s development plan over the next few years. 

Over the next two years, the company will:

  • Develop VR content for the therapy market
  • Continue to strengthen the OpenMind 360 brand through VR workshops for adolescents in Israel, directly and through partners
  • Create partnerships with global distributors to sell the solution to educational institutions and mental health clinics
  • Build the infrastructure for a virtual platform to connect mental health content providers to customers

Our marketing strategy is built around the development and management of the virtual platform.  Content in the form of VR/AR, blogs and articles will be provided by OpenMind 360 and other partners.  Educational institutions, clinics, health insurance companies, therapists and patients will connect as customers.  OpenMind360 will collect data and build a large repository of mental health content while continuing to develop applications for VR and AR that will be used by its own content and content from other providers.  High traffic on the web site will attract partners and advertisers such as mental health service providers, pharmaceutical companies and treatment centers.

OpenMind 360 will charge royalties on transactions between providers and customers, from the AR and VR applications and from advertisers.

 

 

Competitors

In the therapy field:

Psious - A Spanish company in the field of therapeutic VR, offers individual VR-based treatments for anxiety, phobias and relaxation combined with biofeedback. Has not yet left Spain.

CleVR - A veteran Dutch company that relies on academic research and offers tailor-made solutions based on a portable VR kits. VRs are animation-based and deal with different phobias through Exposure Therapy. The company is more research than commercial and operates mainly in the Netherlands.

Virtually Better – Is developing a program to deal with public anxiety, phobias, fear of heights and phobia of lightning storms.

Virtual Reality Center - Developed a virtual reality-based technology to deal with a fear of flying. The system includes the use of real airplane seats and special sound system that simulates the sounds of takeoff, landing and staying on the plane during flight.

Mimerse - A Swedish company that developed a virtual reality-based game about individual coping with phobias. For example, the game combines controlled and gradual exposure to three-dimensional images of spiders.

Deep - A relaxing meditative game designed to relieve stress, anxiety, and depression.

Limbix - An American company that intends to offer therapists and clinicians with therapeutic systems that include a branded VR kit and a library of content, to deal with various phobias through Exposure Therapy, usually through animation. Are linked to leading research institutes in the United States but are still in the early stages of research, including a study of depression and social anxiety among young people. 

In the educational field:

YAM - The European YAM program offers several workshops for K12 classes dealing with preventing suicide by playing role-playing games. The program, which has proven to be effective in large-scale European research, has not yet been accepted in Israel.

SOS - The US SOS program is designed to identify signs of suicidal intentions in educational discussion groups and to place gatekeepers. The program also uses video clips.

Surviving the Teens, US - A 4-day program based on teen stories.

Choosing Life - A program of the Israeli Ministry of Education designed to prevent suicide. Have Chosen to combine our VRs into their program.

 

Competitors - financial

  • Limbix announced cooperation with Pixvana who are developing tools and services for VR content providers. Pixvana raised $20m from leading venture capital funds, including Microsoft and Cisco funds.
  • AppliedVR has raised $ 3 million in the US.
  • VRHealth raised $2M in Israel using the ExitValley platform. VRHealth uses VR for physiotherapy and body rehabilitation.
  • Talkspace raised $59m.  The company offers a platform connecting psychologists and patients for online treatment
  • Yoni Bloch's EKO (formerly Interlude) has raised $ 300 million from Walmart for interactive video content development.

These companies highlight the market potential of mental health care and the many studies that point to the effectiveness of the VR platform for this field, especially when incorporated with interactivity.

 

Exit Strategy

Our exit strategy is aimed at the acquisition of the knowledge and activity of OpenMind 360 by an international (American or European) company in the field of mental health care.

Possible examples:

- A large health insurance company whose goal is to prevent treatment payments and rehabilitation for its insured.

- Merging or acquisition by a competitor

- An educational company that operates technology-based education systems for goverments.

- A social networking corporation that demonstrates corporate responsibility for preventing the negative effects of social networking (spamming, cyberbullying etc.) - such as Facebook (which works extensively in the VR field).

Use of Proceeds

We intend to use the funds we raise to request a matching grant from the Israel Innovation Authority.  For 1m NIS raised by the company, the authority will provide a matching 1m NIS grant.  This is the recommendation we received from the authority, and thanks to our excellent relationship with them, we are likely to succeed.

Usage if minimum funds are raised:

 

Purpose

Amount

Notes

1

Content production: Improve the existing pilot material for the educational market and create new content for the therapeutic market.

NIS 200,000

Produce 2 movies for the therapeutic market under the guidance of experts (one in English)

2

Technology enhancement: Upgrade the applications and create the infrastructure for a social platform for mental health content

NIS 100,000

Create the infrastructure for a platform to connect content providers to customers

3

Academic research consulting

NIS 30,000

For consultation in the planning and execution of the research to validate the program

4

Marketing and branding

NIS 100,000

Brand building, marketing, consulting, marketing tools, participation in conferences

5

Workshops and training workshops

NIS 40,000

Workshop administration and logistics

6

Purchase of technical equipment

NIS 30,000

Completion of purchase of technical equipment, VR headsets and servers

7

Administration

NIS 50,000

Office, CPA, Attorney, Insurance

 

Usage if maximum funds are raised:

 

Purpose

Amount

Notes

1

Content production: Improve the existing pilot material and create 3 new high-quality VR movies to complete the program, including workshop layout.

NIS 300,000

Produce 3 movies: 1 for the educational market in English, 2 for the therapeutic market under the guidance of experts (1 in English)

2

Technology enhancement: Upgrade the applications and create the infrastructure for a social platform for mental health content

NIS 150,000

Create the infrastructure for a platform to connect content providers to customers and build the infrastructure for the collection and analysis of data

3

Academic research consulting

NIS 50,000

For consultation in the planning and execution of the research to validate the program

4

Marketing, branding and business development

NIS 150,000

Brand building, marketing, consulting, marketing tools, participation in conferences in Israel and abroad, creating partnerships

5

Workshops and training workshops

NIS 50,000

Workshop administration and logistics (for a large number of workshops)

6

Purchase of technical equipment

NIS 50,000

Completion of purchase of technical equipment, VR headsets and servers for multiple parallel workshops

7

Administration

NIS 50,000

Office, CPA, Attorney, Insurance

8

Management and general

NIS 250,000

Management salaries

Team

Iftach Weiser
CEO
Biography
Iftach has been in the hi-tech industry for more than 30 years, In senior positions such as COO and Vice President of Customer Service for leading hi-tech companies, such as Orbotech, IndigoHP, Verint, Nice and Optimal+. Iftach brings with him vast experience in leading complex projects as well as budget management. He holds a bachelor degree in Computer Engineering from the Technion and a master’s degree in Business Administration from the INSEAD (France). In the past he served as the chairman of the board of the Alma Association for Hebrew Culture.

  • Founder
Tom Mittleman
Biography
Tom works as a graphic designer at the exhibition wing of the Madatech Haifa, where she manages projects and designs exhibitions. She has a rich background in training, developing lesson plans and working with children. She obtained a bachelor degree in Graphic Design from the Wizo Academic Center and holds a Master’s Degree in Integrated Design from the Holon Institute of Technology.

  • Founder
Erez Mullay
Biography
Erez is a designer that has been specializing in social design for the last 12 years. He has been leading empowerment and employment processes through design among the disadvantaged, with extensive background in working with the third sector and its connection to the business sector. He has been a part of developing and implementing social projects, serves as a lecturer of social design, graduate of Bezalel Academy of Arts and Design. In the past he served as the CEO of the ‘Wings’ foundation.

  • Founder
Michael Schuldenfrei
Tech Advisor
Biography
Senior technologist, CTO in a number of leading hi-tech companies, including SAP, Microsoft and Optimal +, 30 years of experience and expertise in the field of big data analysis

  • Key Employee
Dr. Dana Feldman-Sade
Research Director and Content Consultant
Biography
A clinical psychologist and child therapist at Schneider Children‘s Hospital. She has conducted the activities in Israel of a comprehensive pan-European study on intervention suicide prevention programs.

  • Advisor
Mor Shraga
Training Coordinator
Biography
Mor holds a master’s degree in clinical social service and works as an emotional therapist, and as a group therapy facilitator. She specializes in counseling, development and facilitation of process oriented workshops for special populations and at-risk students in particular, in formal and informal educational frameworks.

  • Key Employee
Prof. Abraham Peled
Biography
Graduated MD from La Sapienza University of Rome Italy 1988 Residency in psychiatry Rambam Medical Centerת Graduate 1995 Post-Doc in Neuroscience UCD Medical Center California 1995-1998 From 1998 and currently Chair of department at Shaa’r-Menashe MHC Israel. Experienced chairing various departments including forensic psychiatry wards providing court psychiatric opinions. Since 1998 holding academic position, Clinical Assistant Professor and neuroscientist at the Rappaport Faculty of Medicine, Technion, Israel Institute of Technology. Since 1998 teaching positions include Head of residency program and head of student psychiatry clerkship at Shaa’r-Menashe MHC supervisor for PhD students. 1998 Founder of “NeuroAnalysis,” website, author of four books and various publications applying physics of complex-systems to psychiatric diagnosis. 2017 Cofounder of Brain Profiler

  • Advisor

Investors 10

Anonymous Investor
0
Followers
1
Investments
Anonymous Investor
0
Followers
1
Investments
Anonymous Investor
0
Followers
1
Investments
Anonymous Investor
0
Followers
1
Investments
Anonymous Investor
0
Followers
1
Investments
Anonymous Investor
0
Followers
1
Investments
Anonymous Investor
0
Followers
1
Investments
Anonymous Investor
0
Followers
1
Investments
Anonymous Investor
0
Followers
1
Investments
Anonymous Investor
0
Followers
1
Investments

Updates

    Currently there are no updates in this pitch

The Deal

Documents

Disclosures

Follow us