What We Look For
While each opportunity is unique, we target companies focused on medical devices, diagnostics, life science tools, biopharmaceuticals, specialty pharmaceuticals and healthcare IT with the following attributes:
Innovative companies
Innovative products that aim to address unmet medical needs, improve patient outcomes and reduce overall healthcare expenditures.
Commercial-stage companies
Commercial-stage companies with existing reimbursement and high gross margin.
Recurring revenue and “sticky” customer relationships
Products with compelling clinical data and limited competition that may result in recurring revenue streams and “sticky” customer relationships.
Downside protection
Significant collateral value, including intellectual property, supporting the loan.
Sufficient liquidity to fund the business plan to profitability and the repayment of the loan.
Increase in collateral value
Uses of proceeds that increase collateral value such as acquisition, expansion of commercial infrastructure, product launches and the development of breakthrough technologies.
WELL-KNOWN MANAGEMENT TEAM
Well-known management team with demonstrated track record of product launches and fund raising.
Strong investor support
Private companies with strong venture capital investors that can provide additional capital if needed and public companies with access to capital markets.
What We Look For
While each opportunity is unique, we target companies focused on enterprise software, SaaS, internet, networking and data infrastructure with the following attributes:
Innovative companies
Proven technology with mission critical offerings.
Commercial-stage companies
Commercial-stage companies with high gross margin.
Recurring revenue and “sticky” customer relationships
Recurring revenue streams based on customer contracts, high switching costs and low customer churn.
Downside protection
Significant collateral value, including intellectual property, supporting the loan.
Sufficient liquidity to fund the business plan to profitability and the repayment of the loan.
Increase in collateral value
Uses of proceeds that increase collateral value such as acquisition, expansion of commercial infrastructure, product launches and the development of breakthrough technologies.
WELL-KNOWN management team
Well-known management team with demonstrated track record of product launches and fund raising.
Strong investor support
Private companies with strong venture capital investors that can provide additional capital if needed and public companies with access to capital markets.
The equity investment strategy is an extension of our existing debt strategy and we focus on equity opportunities in companies where Innovatus is the lender. We seek to create differentiated value by identifying investments across a broad spectrum of opportunities, including breakthrough technologies that address unmet medical needs and improve patient outcomes, as well as innovations across the healthcare value chain that reduce overall healthcare expenditures.
We combine deep industry expertise and a rigorous evaluation process to identify technologies and companies that can drive critical change and have the potential to create significant value with “line-of-sight” to an exit in the near term.
The typical investment size is $2 to $5 million per company.