Medtronic. Cardinal Health. Guidant. Becton, Dickinson. St. Jude Medical. Hospira. Fresenius. Varian Medical.
All of these medical device manufacturers had greater than ONE BILLION DOLLARS in sales last year.
Who Will be Next?
The great thing about this sector is that while the overall venture business is way down, medical device funding is BOOMING.
Firms poured $1.5 billion in 160 deals in the second quarter, up 47% over the prior quarter. In fact, investments in life sciences companies made up 41% of all private venture funding last quarter.
Why Should You Care?
Is there money being made in the sector now - even in this tough economy? You bet your life there is.
America's spending on healthcare will top $2.5 trillion this year alone, accounting for more than 17% of the nation's spending, and may double in the next decade.
Medical devices account for more than $100 billion of this.
Think of companies like device maker Vnus Medical, which Covidien just bought for $470 million - 4 times 2008 sales.
And Danaher, the industrial conglomerate, made big moves in the sector by buying MDS's analytical-technologies business for $650 million.
P.S. Medical devices is a bright and hot sector in the midst of a mostly dismal technology investment climate.
Stop crying in your soup about how tough it is out there and do something about it.Categories:
I recently had the opportunity to speak with expert entrepreneur and founder/CEO of Lending Club, Renaud Laplanche.
Renaud is an expert in raising capital, as he has successfully raised multiple rounds of venture and other capital -- totaling over $50 million for both Lending Club and Triple Hop Technologies, of which he was also the founder.
So I was excited to ask him questions about raising capital for one's business and how LendingClub can help individuals and entrepreneurs. In the interview we covered:
Click below to hear excerpts from the interview:
As readers of the Growthink blog know, I LOVE Kiva (Please read my past blog post on it here). For those not familiar with it, Kiva is a person-to-person micro-lending site –allowing individuals, primarily from developed countries, to lenddirectly to entrepreneurs in the developing world. The borrowers arein places like Cambodia, Bolivia, Azerbaijan, Lebanon, Peru, andTanzania – and primarily borrow to allow their very small businesses toexpand and hire.
Kiva was created in 2005 and originally funded 7 loans for a total of$3,500 which were all paid in full.
Since then, it has grown incredibly. Try these stats on for size:
Growthink's first Kiva loan (first of many we hope), was made to Ms. Tamalii Iopu, owner of a fishing business in Luatuanuu, Somoa. Ms. Iopu, a single mother of two, borrowed money last year to buy new fishing gear, and repaid it in full last month.
I would like to say that we had a particularly scientifically methodology for selecting Ms. Iopu from among the literally THOUSANDS of very deserving entrepreneurs on Kiva. The reality is, like most Kiva lenders, we simply connected to her story as presented on the site. And the very pure repayment histories of all of the borrowers is beyond inspiring.
Growthink hopes to do a LOT more with Kiva in the months and years to come. As I noted in my previous post, we love it because:
Check out Kiva at http://www.kiva.org. And prepare to be inspired.
Did you know that in the last 10 years, every major stock market index has LOST investors money?
That's right, on an inflation adjusted basis, the Dow, S&P, and NASDAQ have each given investors NEGATIVE returns.
And with all of the meddling in the markets coming out of Washington, prospects for the next 10 years aren't any brighter.
Fortunately, there is a better way. In those same 10 years, while stock market investors made nothing or took a bath, early-stage private equity investors earned over 30% annually.
Why is This?
Efficient markets theory teaches us that private equity will always out-perform the public markets. Investors must be given higher rates of return to compensate for the traditional illiquidity and high variability of the asset class.
And up until recently, access to quality early-stage private equity return vehicles has been a) cost and time prohibitive for most institutional investors and b) simply inaccessible to the smaller, individual investor.
The Times They Are A Changin'
Luckily, this is no longer the case. Five mega-trends have coalesced to transform private equity investing as we know it:
1. The ability to source, research, and monitor deals via the Internet
2. The ability to take a data - versus a personality - driven approach to deal diligence
3. The ability to better price deals utilizing regression analysis
4. The ability to exit deals faster - both via alternative investment trading platforms like Second Market - and also simply because of the increasing velocity of business, especially technology business.
5. The ability and opportunity to properly apply "black swan," or "randomness" modeling to deal diligence
Best regards, and look forward to connecting.
P.S. Are you prepared to be saying in 2019 - "Darn - It has now been 20 years since I made any money with my investments?" The world has changed - time to change with it.Categories:
I am very happy to report that Growthink was named to the Inc. 5000 list for the 2nd year in a row.
We were ranked as one of the country's 50 fastest-growing financial services companies (#45) and one of the 100 fastest-growing businesses headquartered in Southern California (#71). Our comprehensive survey ranking was 1,042 out of the 5,000 fastest growing companies in the country.
Our standing is a testament to the work ethic and passion of our people as we navigate these historic markets. And our continued success highlights the power and importance of small business and entrepreneurship to the American economy.
I am also happy to report that in spite of my fears of a slow business summer, August has proven to be an incredibly busy month here at Growthink. Our 3rd quarter revenue numbers are on pace to come in at over a 30% uptick from Q2, and as importantly, the quality of our new client portfolio deals is incredibly high.
For a snapshot overview of some of the rockstar companies that we have brought on recently, click here.
How Can YOU Get Involved?
If you believe in emerging technology and in American entrepreneurship, if you're tired of the losing stock market game, and are open to the new and the different, then we should talk.
Best regards, and look forward to connecting.