CardiacSense Valuation Drops Nearly 85% in One Year

4 July, 2025

CardiacSense, the Israeli medtech company that once showed great promise with its wearable health-monitoring smartwatch, has seen its valuation plunge from $125 million last year to just $20 million in a recent funding round

According to a report published Sunday by investment firm Merhav M.B.A., which holds a 4.3% stake in the company and contributed approximately $250,000 to the round, CardiacSense recently raised between $1 million and $5 million. The round was reportedly led by a major global semiconductor company as part of advanced negotiations for a strategic commercialization agreement.

While the chipmaker’s identity has not been disclosed, two clues offer potential insights. Merhav’s annual report noted that the semiconductor company generates around $15 billion in annual revenue. Additionally, during CES 2025 in Las Vegas, CardiacSense participated in a joint demonstration with the same company at a private event for several hundred potential customers. These details point to NXP Semiconductors as a likely candidate—NXP presented smart home solutions at CES that incorporate biometric sensing and reported 2024 revenues of approximately $15 billion.

The announcement also mentioned that the partnership involves a strategic refocus for CardiacSense. Indeed, NXP’s CES showcase was geared toward the smart home domain, a significant departure from CardiacSense’s original focus on regulated medical markets. While not officially confirmed, it’s possible the collaboration centers on CardiacSense’s algorithmic IP rather than the complete wearable device. Another company that demonstrated similar solutions at CES was OSRAM, which develops optical sensors for multiple industries, though its annual revenues are significantly lower—just a few billion dollars.

Only One Employee Remains: The CEO

Perhaps the most striking aspect of the recent funding is the dramatic decline in CardiacSense’s valuation. During the early days of the COVID-19 pandemic, the company was seen as a rising star amid surging demand for remote health monitoring. In 2017, CardiacSense raised funds at a $6 million valuation. By 2020, its valuation had climbed to $35 million, doubling to $70 million by early 2021. In the final quarter of that year, the company peaked at a $125 million valuation.

Since then, valuation declined steadily with each funding round—some of which were structured as convertible loans. Despite signing dozens of distribution agreements worldwide, the company struggled to generate meaningful revenue, in part due to fierce competition from players like Apple. Facing a high cash burn rate, CardiacSense implemented a cost-cutting plan and slashed its workforce. According to Merhav’s 2024 report, the company had only one salaried employee at the time: its CEO.

Innovative Technology

CardiacSense developed a wrist-worn medical device capable of continuously monitoring heart activity and detecting atrial fibrillation (AFib) in its early stages. AFib is the most common cardiac arrhythmia and is responsible for approximately 130,000 deaths per year in the U.S. alone. The device relies on a proprietary optical sensor and advanced algorithms that track changes in blood vessel volume using photoplethysmography (PPG) technology.

It is designed to serve as a remote, continuous alternative to ECG exams typically performed in clinical settings, enabling 24/7 monitoring for at-risk patients as part of their daily routines. CardiacSense envisions two primary applications: remote monitoring for chronically ill patients and in-hospital monitoring of admitted patients, with the device measuring multiple vital signs that today require several separate instruments.

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