Answers to the most popular questions
Medtech investment is a sector that requires deep knowledge and experience and we pride ourselves on having built our team around this. Our focus on medtech investments ensures that we truly understand each nuance of the industry, can make market predictions and can involve the right network contacts at the right time for maximum impact. When deciding to invest, we follow a consistent evaluation process and rigorous due diligence. After making an investment, we engage at all levels of your business to steer the company towards success.
Our firm has a unique combination of operating and investment expertise having developed companies on both sides of the Atlantic and a large team that can help companies in depth.
You can expect to work with a team of highly experienced, focused and specialised individuals who understand exactly how to support and grow your business, as we’ve been there ourselves. With an extensive network of industry experts and key opinion leaders, we can open doors for you and will be hands-on to help you achieve your goals.
Our mission is to transform the standard of care for millions of patients by investing in groundbreaking medical device innovations. We want to work with companies that share our core values and this overarching goal.
We usually prefer opportunities where we can expect a holding period below five years, but we are willing to support companies up to our fund limit of 10 years, where it makes sense.
The fund will typically invest $10-30m over the lifetime of an investment via multiple rounds. We make sure we have additional reserves for each portfolio company, to be used if necessary. We can also bring in other investors if required. Looking beyond capital, we can provide extensive support, advice and in-depth knowledge as our team is made up of medtech veterans and investment experts with a wealth of industry specific experience.
The majority of our investments have been in the US and Europe, but we don’t restrict ourselves by geography so are happy to receive investment proposals regardless of where your company is based.
While it’s always helpful to be referred by an industry contact or friend of the firm, we do accept submissions. You can email an executive summary or investor pitch deck to us here: firstname.lastname@example.org.
We seek to invest in medical technology companies that have a groundbreaking medical device or system that can significantly improve the current standard of patient care and address unmet clinical needs. Stage-wise, we invest in growth stage companies that are already on the market or have a predictable path towards market entry. Traditionally, our target investments have or are well on their way towards having regulatory approval in one or more geographies. Finally, our investments are both US or European based as medtech is a global market. Importantly, although we traditionally invest in later-stage companies, we are happy to review and track earlier stage opportunities as well to develop a relationship and invest when the time is right.
We currently advise the largest fund dedicated to medtech, based in Europe which is $280m (Endeavour Medtech Growth LP). This fund far exceeded its original target and was over subscribed so we are keen to respond to that demand with an increase in our future fund sizes. The next fund is currently being prepared.
Our ownership percentage varies based on a number of factors but generally we look to hold a stake of 10-25%. Nonetheless, to add value, we normally take a seat on the Board of Directors to ensure we have a complete overview of the business and can also provide access to our full network. We understand the importance of building an exceptional Board that will drive your business to success.
There’s no one-size-fits-all approach to valuation so we approach it from several angles. Firstly, we’ll apply a few valuation techniques specific to young companies such as the venture capital method, cash flow valuation or earnings valuation. We then compare the potential deal with other companies we’re aware of and their typical market valuation. Finally, we undertake a qualitative assessment of some of the more basic operational elements of the company. This could include the experience of the management, the development stage of the organisation, or the clinical impact or uniqueness of the product.
We focus on building fully-fledged standalone companies capable of reaching >$100m in annual revenues. However, as is common in medtech, such companies often get acquired by large global strategics via a trade sale. It is therefore important consider this early in the process – it is a key part of our due diligence. We may also consider listing the company as a public offering and have done so in the past, having the ability to cross-over our investments into public markets as necessary.