Cryotech, a Finnish high-tech company developing cryotherapy technology in Estonia, leverages the local business climate to rapidly expand its HealthTech operations, particularly rehabilitation and wellness.
Very cool innovations
Cryotech Nordic (CTN) develops recovery and wellness technology through cryotherapy. Cryotherapy is based on the rapid and controlled cooling of skin tissue, which increases the body’s own blood circulation. “One feels good due to the release of endorphins and the anti-inflammatory protein norepinephrine,” explains Mare Oravainen, Sales Director of Cryotech.
More specifically, the aim is to use high-tech tools to help athletes and home users to recover quickly and easily from the strains of life, injuries, surgeries, and physical exercise. Oravainen emphasises that CTN devices might speed up recovery from aches and pains, alleviate musculoskeletal disorders and enhance mental wellbeing. Many end-users of CTN devices have published positive results from their treatments.
Oravainen points out that their product has become so popular that even world-famous athletes are willing to endorse it. “Top athletes such as Kimi Räikkönen and Thiago Silva are taking part in our campaigns,” he says, referring to the famous racing driver and footballer. “In addition, we have a long-standing partnership with the Finnish Olympic and Paralympic Committees.”
Boost from the environment
Last year, CTN group managed to double its turnover, reaching €4M. This 100% organic growth was achieved despite the challenging global business environment. Among other things, the company successfully entered the US market with its products.
Cryotech has been operating in Estonia since its founding, and Group’s CFO Miika Peura cites support from the public sector as one of the advantages here. “High-tech startups are definitely supported here,” he says. “Estonia also has a well-educated workforce and is a member of the eurozone,” Peura adds, also praising the local market.
By public sector support, Peura means Enterprise Estonia. “Cryotech is very grateful for the support and services that Enterprise Estonia has provided to the company.” Anneli Hansen, Director of Regional Business Development in North Estonia, explains that several people were involved in assisting Cryotech at different times. “I have been advising them on various grants and digital measures,” she says. “In reality, the issues that a regional investment advisor can help foreign investors with are end-to-end,” she says, pointing out that her role is not limited to providing information on support measures.
For example, Enterprise Estonia has put Cryotech in touch with useful contacts, like, for example, the Unemployment Fund, which advised Cryotech on recruiting beneficiaries of international protection from Ukraine. “But also on starting a digitalisation and automation project,” says Hansen.
According to Hansen, one of the objectives of the Invest Estonia (a part of Enterprise Estonia) is to support companies based on foreign capital with the help of regional investment consultants like herself in the regions of Northern, Eastern, Western or Southern Estonia as well as in Tallinn, including Viimsi.
“We help foreign investors to come to the country and support them afterwards, throughout their stay. We motivate them to grow and invest in order to create smart jobs in the region. Hansen also encourages foreign companies to approach Estonian Investment Agency themselves. “That way, they don’t have to navigate the maze of different measures themselves.”
Peura also cites Estonia’s moderate input prices and business-friendly tax system as other advantages. “This allows high-tech companies like ours to invest more in research and development,” he says, adding, “R&D is key for us because innovation is a guarantee for success”. In 2022, the patents belonging to Cryotech in Estonia were appraised at an impressive total value of 43 million euros.
A big step taken
Cryotech has already demonstrated innovation by developing two popular products for the recovery segment. The globally patented electricity-powered XCryo for localised Cryotreatments has been one of the most successful products of Cryotech. There are over 350 professional users of this device in Finland alone, and it continues to gain popularity all over the world. Now Cryotech has launched e°CABIN, which is a next-generation cryotherapy device.
“e°CABIN creates a thermal shock for the whole body – from the neck down to the ankles,” says Oravainen. “This revolutionary innovation is patented and enables fully automated intelligent treatment sessions. It is also the first device on the market that operates with standard 220V electricity only,” she explains.
The product is based on commercial-grade freezing components and the latest environmentally safe sustainable coolants and materials. “Our product is not only greener and more sustainable than traditional alternatives using liquid nitrogen, but it is also significantly easier and safer to use,” says Peura confidently.
He points out that e°CABIN is powered by standard electricity, and no cryogenic gases are needed. “The cold distribution and duration of the sessions are controlled automatically by six sensors that monitor temperature in real time. Thanks to this technology, every session is completed safely and efficiently with perfect end results,” says Peura.
The product is already popular worldwide. “We, therefore, want our production capacity to match the global sales success of e°CABIN. This will allow us to meet the other ambitious targets we have set for the coming years,” concludes Peura.
Over the next five years, Peura expects Cryotech Group to grow its turnover to 100 million euros, a 25-fold increase compared to today. “In addition, we want to be a leading global provider of rehabilitation and wellness products,” he says.
The growth is expected to be financed through the London AIM exchange, which will bring together an unquoted fast-growing company and investors. “We want our production capacity to meet global demand,” says Peura.
“We welcome all investors – both institutions and private individuals – who want to join our success story,” Peura notes, assuring that research and development activities will definitely continue at the Estonian production facility. He adds that currently, Cryotech’s investors are primarily wealthy high net worth individuals, and the company has also attracted money from management and other key people.