The Problem Annabella Solves

Despite the significant growth of the breast pump market and the increasing awareness of the importance of breastfeeding for both mother and baby, most breast pumps worldwide still rely on the same operating principle replicated from a patent dating back to 1854 - originally designed for cow milking machines.
Moreover, the basic vacuum mechanism used in breast pumps (similar to that found in vacuum cleaners) has remained virtually unchanged for the past 170 years.

The rise in the number of breastfeeding women—and consequently, in breast pump usage—has largely resulted from initiatives by global organizations such as the World Health Organization (WHO) and UNICEF, as well as government programs promoting breastfeeding in many countries around the world.
For example, the WHO recommends breastfeeding until at least the age of two and emphasizes its vital role in preventing sudden infant death syndrome (SIDS), supporting healthy infant development, and improving both maternal and infant health.

Nevertheless, a 2016 study conducted by MIT found that women described their breast pump experience negatively, using words such as hate, pain, awkwardness, frustration, and crying.
This study is just one of many publications describing the difficulties and poor user experience resulting from the outdated design of breast pumps.

A 2023 survey found that although wearable pumps receive higher satisfaction ratings, many women report weak suction power, resulting in longer pumping sessions.
Annabella’s breast pump solves this problem — its unique tongue mechanism simulates a baby’s natural suckling motion, reducing the need for high vacuum pressure to extract milk efficiently and comfortably.

Annabella’s solution:
A single-sided and double-sided breast pump that revolutionizes the pumping experience — comfortable, efficient, and natural, just like breastfeeding itself.

Annabella has developed breast pumps featuring a unique mechanism that mimics the wave-like motion of a baby’s tongue during breastfeeding, providing a more comfortable and efficient pumping experience — one that closely resembles natural nursing

On the suction comfort rating (pump pleasantness of use), Annabella achieved an average score of 9.6 out of 10.

Annabella breast pumps feature three key innovations that provide mothers with a more positive and effective pumping experience:

• Tongue mechanism that mimics natural suckling – delivers a pumping experience that feels almost like breastfeeding, while increasing the amount of milk expressed.

• Adjustable tongue-height mechanism – allows the pump to comfortably adapt to different breast sizes without the need for additional accessories.

• Silicone-coated breast shield – an advanced manufacturing technology that replicates a baby’s oral structure and includes a soft silicone layer to protect the mother’s breast tissue.

Annabella pumps are the only breast pumps in the world that combine vacuum pulses with the wave-like motion of a tongue, closely replicating a baby’s natural suckling.

The tongue’s wave-like action compresses and stimulates the nipple, helping the mother produce higher levels of two essential hormones — prolactin and oxytocin — which are responsible for milk production and the let-down reflex.

Annabella creates a calm, comfortable experience — while enabling greater milk expression.

The milk production and let-down process:

Annabella Product Catalog

In addition to its breast pumps, Annabella offers a range of complementary breastfeeding and pumping products sold in Israel, the United States, and Germany through various sales channels.

The company provides a selection of supportive breastfeeding accessories and replacement parts designed to strengthen brand recognition and increase market share.

Annabella’s product line includes:
• Breast milk storage bags
• Baby bottles
• Pump storage and carrying bags
• Pumping bras

Wearable Breast Pump

A compact, wireless breast pump designed to be placed inside a bra, enabling completely hands-free pumping. It is based on Annabella’s unique suction technology — combining vacuum pulses with a tongue-like mechanism that mimics the natural sucking motion of a baby. This creates an effective, comfortable, and pain-free pumping experience.
The pump is quiet, easy to clean, and offers an intuitive user experience.

Wearable Breast Pump – Generation 2

The next generation of Annabella’s wearable pump, featuring seamless connectivity to a dedicated app for measuring milk volume, receiving real-time operating recommendations, and generating personalized pumping programs powered by AI.
The new model integrates smart data analysis to improve pumping efficiency over time, provides visual performance indicators, and allows full control of parameters such as vacuum strength and tongue-motion speed — delivering a tailored, precise, and personalized pumping experience.

The Market

According to Grand View Research, the global breast pump market was valued at approximately $3.2 billion in 2024 and is projected to reach around $7 billion by 2033, reflecting an compound annual growth rate (CAGR) of about 9.3%.
Within this market, the wearable breast pump segment—a rapidly growing and innovative category in which Annabella operates—was valued at approximately $596 million in 2024 and is expected to grow to around $975 million by 2030.
North America currently accounts for the largest market share (approximately 44%–52%), followed by Europe, which is the second-largest market.
While various market surveys provide differing estimates, Grand View Research is widely regarded as one of the most credible and authoritative sources in the field of market research.
 

The Market Potential
The breast pump market is characterized by three main types of companies:
1.    Large, well-established corporations with strong global brands.
2.    Mid-sized companies that hold significant market share in key regions, primarily in Asia.
3.    Startups and relatively young companies whose operations are financed through investment rounds by private and institutional investors.
In recent years, the industry has witnessed high-value acquisitions of small and mid-sized companies by major global players.
For example:
• In 2006, Philips acquired Avent for €689 million .
• In 2014, Goodbaby acquired Evenflo for approximately $143 million.

• In addition, startup companies in the breast pump sector have shown significant valuation increases across funding rounds (up to Series C), according to information provided to the company by the investment banking advisory firm Fortunet, based on data from the PitchBook database:
• Willow – in 2022, the company raised approximately $75 million, reaching a post-money valuation of about $282 million.
• 

Competition

Currently, the breast pump market is dominated by three leading companies:
• Medela
• Philips Avent
• Spectra – a U.S.-based company that primarily sells its products through insurance providers.

There are also several smaller competitors with a limited market share, such as Ameda, Ardo, Lansinoh, and various Chinese manufacturers offering low-cost products.

In recent years, the market has been undergoing a major shift, with nearly all brands now offering wearable breast pumps.
The leading brands in the wearable segment include Medela, Willow, Elvie, and Momcozy, all of which are gaining momentum.

However, none of the competing companies offer a breast pump featuring a tongue mechanism that mimics a baby’s natural suckling motion — the core and unique advantage of the Annabella breast pump.

Annabella in the media:

Under the “Documents” tab, a copy of the Barnea Report and the financial statements as of June 30, 2025 are included.

Annabella Tech Ltd. – Summary of the Financial Position as of June 30, 2025, and Key Changes for the First Half of 2025

During the first half of 2025, Annabella Tech Ltd. continued its commercial expansion and further strengthened its operations in international markets, recording a significant increase in revenue alongside continued investment in development and marketing activities.

The Company’s revenues for the period totalled approximately NIS 4.5 million, representing growth of roughly 154% compared to the corresponding period of the previous year. This increase is primarily attributable to expanded sales to distributors in Europe and Israel, as well as continued growth in online sales in the United States.

Gross profit increased to approximately NIS 1.7 million, reflecting an improvement in the gross margin mainly due to the increase in online sales in the U.S. market.

Selling and marketing expenses increased as a result of expanded operations in the United States, while the operating loss for the half-year remained stable at approximately NIS 6.5 million, similar to the previous year. The total loss for the period amounted to approximately NIS 7.6 million.

Cash and cash equivalents as of June 30, 2025 were NIS 8.1 million, compared to NIS 13.5 million at year-end 2024, mainly due to cash usage for ongoing operations.

Shareholders’ equity as of June 30, 2025 amounted to approximately NIS 6 million, compared to NIS 12.9 million at the end of 2024.

During the half-year, the Company received grants from the Israel Innovation Authority totaling approximately NIS 228 thousand and continued investing in the development of its new wearable breast pump. Several new distribution agreements were signed in the U.S. and Europe, and the Company won three prominent international innovation awards for 2025, further strengthening its market position.

However, similar to many early-stage start-ups, the Company’s auditors noted that, in light of the accumulated losses and negative cash flows, there is substantial doubt regarding the Company’s ability to continue as a going concern. The management is therefore pursuing additional fundraising efforts and strengthening its financing sources.

The Company seeks, to the extent permitted by market conditions and based on the performance of the Company and its subsidiary, to pursue an exit through one of two potential paths:

1) Sale of the Company to a Large Industry Player

The breast pump market is characterized by several major players and ongoing consolidation processes. It is possible that once the Company demonstrates significant sales in the United States and additional markets, while capturing market share from leading companies in the sector, it may receive an acquisition proposal from a major industry participant.

In the short- and medium-term, the Company aims to grow its business, increase its market share, and maximize value.

Potential acquirers include large companies manufacturing breast pumps, such as Medela, or baby-product companies that currently lack substantial breastfeeding-pump operations—such as MAM—and may seek to expand into this field.

2) Public Offering of the Company

A material increase in the Company’s revenues to the level of tens of millions of U.S. dollars, alongside the need for additional financing, may lead to a public offering of the Company’s shares. Such an offering would provide liquidity for shareholders and enable further expansion of the Company’s operations.

The information regarding the Company’s objectives and business strategy constitutes forward-looking information as defined under the Israeli Securities Law. This information is based on market analyses, the Company’s familiarity with the markets in which it operates, its competitors, and its actual activities. Such forward-looking information may not materialize, in whole or in part, or may materialize in a manner materially different from expectations, due to unforeseen events that are not necessarily within the Company’s control, including market needs, consumer preferences, technological feasibility, competitor behavior, and/or the realization of any of the risk factors set forth in Section 6.33 below.

The proceeds from the offering, as received under the Company’s Shelf Offering Report, will be used to finance the offering expenses, including marketing and advertising costs, as well as for the Company’s needs detailed below, in accordance with the Company’s business plan and as determined from time to time by the Company’s Board of Directors:

• 43% of the total proceeds will be allocated to sales and marketing;

• 12% of the total proceeds will be allocated to working capital, manufacturing, and related costs;

• 22% of the total proceeds will be allocated to research and development;

• 15% of the total proceeds will be allocated to general and administrative expenses;

• 8% of the total proceeds will be allocated to ongoing operational activities.

* The Company will specify in its filing the extent of the investment orders received from Accredited Investors, only after Company has been provided with all necessary documents evidencing that any such investor who marked himself as "Accredited Investor" on the order forms, is as such.