Growthink Blog

Who Will be the Next Billion Dollar Medical Device Company?


Categories:

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.

Best regards, and look forward to connecting.

--
Jay Turo
CEO
Growthink, Inc

Follow me on Twitter
Join my network on LinkedIn

  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.  


Growthink Kiva Loan Recipient Repays Loan in Full


Categories:

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:

  • Total value of all loans made via Kiva: $89.7 million
  • Number of entrepreneurs that have received loans: 217,428 (!)
  • Current repayment rate: 98.35% (Phew - how would U.S. mortgage lenders love to be able to say that)
  • Number of countries represented by Kiva lenders: 181 (Who says the world isn't a more inter-connected and better place because of the Internet and technology?)
  • Percentage of Kiva loans which have been made to women entrepreneurs: 82.88% (A lot of academics and political scientists now cite the very high correlation between women's economic advancement and entrepreneurial opportunities and the relative stability of a country and a culture).

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:

  • Loans, as opposed to charity, promote dignity, accountability and transparency.
  • The “middlemen” are cut out.  And, phew, is it about time.  Kiva is a great example of what the new world of finance will look like in the coming years.  As opposed to big, fat, amorphous Wall Street bankers standing between borrowers and lenders, buyers and sellers of money connect directly via a transparent Internet platform.  This greatly reduces the cost of capital and allocates it to where the marketplace, as opposed to your politician or your good old neighborhood’s old boys network, determines where it is best served.  It is a wake-up call for America.  98% repayment rate!  From the poorest of the poor? The titans of American finance (and the American consumer) could learn a thing or two from the Kiva borrowers.
  • It is more proof, if proof is needed, of the core advantages of small versus big and of owner-operators versus a managerial class


Check out Kiva at http://www.kiva.org. And prepare to be inspired.


Five Mega Trends That Are Transforming Private Equity Investing As We Know It


Categories:

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.
--
Jay Turo
CEO
Growthink, Inc

Follow me on Twitter
Join my network on LinkedIn

  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.


Growthink Again Makes Inc. Magazine's Top 50 and Top 100 Lists


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.
--
Jay Turo
CEO
Growthink, Inc

Follow me on Twitter
Join my network on LinkedIn


Hispanic America - Go Where the Growth Is


Categories:

It is no secret that Hispanic America is exploding.  As the fastest-growing sector of the U.S. population, the U.S. Hispanic population is projected to triple from its current 45.5 million, to over 150 million by 2050.

And this exploding demographic group spends money - over $1 trillion in 2008 alone.

Why Should You Care?

Well, if you are looking for a dynamic, long-term macro-growth sector and one filled with special situation opportunities - then you should care.

Try Beverages.

Of the $210 billion U.S. consumers spend on beverages each year, Hispanics spent $24.8 billion of that.  And with rising affluence, the "ready-to-drink" Hispanic-focused category is one pulsating with deals.

Who Says So?

Well, only some of the biggest beverage and consumer products companies in the world - like Coca-Cola, Pepsi, Kerin (of Japan), Pernod Ricard, China Water, and Inbev - which shocked the world with its $52 billion acquisition of Budweiser last year.  

Putting It all Together

The macro trends here areas simple as 1-2-3.  1) Exploding Hispanic Population. 2) Rising affluence - leading to exploding demand for consumer products and 3) Robust sector acquisition activity.  

Now for the micro:  Find a company that 1) Has the right product with the right distribution. 2) Is targeting a niche sector that is unoccupied by the big boys and 3) Isn't so big and well-known that the "business as  opportunity" has passed.    

Best regards, and look forward to connecting.

--
Jay Turo
CEO
Growthink, Inc


The One Thing You Can't Live Without


Categories:

If you're like me, there's one thing you probably take for granted. Interestingly, this one thing is something you can't live without. At least not for long.

But fortunately, there are some cutting-edge entrepreneurs working wonders on solving the challenges of this one thing.

What is it?

Water.

All around the world water shortages long ago crossed the crisis threshold.  In California.  Arizona.  New Mexico. Georgia and Florida.  The Middle East.  China.

Too many years of antiquated public policy, population and economic growth, climate change, and unsustainable agriculture have strained water resources in all of these places to and beyond the breaking point.

The American Entrepreneur to the Rescue

The greater the adversity, the greater the opportunity. And in the dynamic technology landscape of "new water," American entrepreneurs are leading the way. 

A select cadre of under-the-radar water startups are developing game-changing technologies to develop, purify, store, convey, and conserve water.

Meet the Industry Leader

I would like to invite you to an exclusive opportunity to meet, via web conference, the CEO of one of the fastest-growing and innovative water companies in the world.

He will talk about the state of the next generation technologies out there - distributed desalination, nano-particle membranes, energy-efficient reverse osmosis, and demand management.

And he will tell us where the smart money has been going lately, and who stands to profit from the $15 billion the Obama stimulus package targets for water technology and infrastructure investments.

Best regards, and look forward to connecting.

--
Jay Turo
CEO
Growthink, Inc

P.S. To make money in the new business world order, it is imperative to focus on deals and ideas that have a strong, blended public and private sector focus.  You can search the whole world round and not find a technology and a marketplace that fits this description better than water. 


The Obama Stimulus - $17 Billion to ONE Tech Sector


Categories:

Aren't you sick and tired of watching Washington spend all of YOUR money and YOU not seeing any of it?

Wonder where all of the stimulus money has gone?

Well, try this on:  The Obama stimulus commits $17 billion in federal funds to reimburse medical practices for implementation of electronic health records systems and their use.

This involved doctors getting paid up to $44,000 each to transition their practices to the new technology.

And even before the government began throwing money at the sector, it was a $4 billion business growing at 23%/year

Why Should You Care?

Well, if you're interested in capitalizing on one of the fastest growing and most dynamic technology sectors out there, and one about to see turbocharged growth driven by federal dollars, you should care.

Meet an Industry Pioneer

I would like to invite you to an exclusive opportunity to meet, via web conference, the CEO (and Stanford MBA) of one of the fastest-growing and innovative companies in the industry.

He will talk about which companies and technologies are best positioned to profit from the stimulus money, how "cloud computing" applications are beginning to see real adoption rates, and what has been driving the record revenue months his company has had this quarter in this tough economy.

Best regards, and look forward to connecting.

--
Jay Turo
CEO
Growthink, Inc


P.S. I know too many otherwise intelligent business men and women who have been listening to all of the negative drivel that passes as business news out there, and sitting on the sidelines and missing opportunities.

Don't be like them.


CleanTech Nation: Why Investments Have Risen 477%


Categories:

You've likely heard all of the hype regarding Cleantech.

How the Obama stimulus plan fuels $83 billion into the sector.

How cleantech investment today is more than 477% greater than what it was in 2005.

How Vinod Khosla, arguably the world's most famous and well- respected venture capitalist, last week raised another $1 billion - including $150 million of his own money, to invest in it.

Wind. Solar. Geothermal. Water treatment. Smart grid. Fuel cells. Carbon capture. If you have turned the TV on at all over the past year, you've probably heard about all of these.

And here is one you probably haven't heard - Bio-friendly pesticides

Who cares?

Well, if you're interested in capitalizing on one of the great arbitrage opportunities of our time, you should care.

Because bio-pesticides, an environmentally friendly option to synthetic chemicals, is the perfect storm about to happen.

We're talking about a $70 billion+ industry, where new, effective and safe pesticide products are gaining traction.

One where governments worldwide are mandating -  through strict, new regulation - a fast transition from the old, synthetic-based products that have been damaging our health and the environment for far too long.

An industry that includes dozens of completely under-the-radar, private companies.  And cash - rich big boys, like DowAgro and Monsanto - on acquisition sprees.

Meet the Industry Leader

I would like to invite you to an exclusive opportunity to meet, via web conference, the CEO of one of the fastest-growing and most dynamic companies in the industry.

He will talk about the super-fast growth his company is currently experiencing, and how they relate to his public offering and acquistion plans.

If you're interested in learning how money is really made in emerging technology, then this is a presentation you don't want to miss.

Portfolio Theory and Angel Investing


Categories:

One of the most exciting trends in angel investing and private equity over the last 6 months has been the application of traditional

Some of the most interesting investment research over the last 6 months has been the application of traditional portfolio theory and hedging  techniques to angel and private equity investing. Research compiled by the National Venture Capital Association, by the Kaufman Foundation for Entrepreneurial Activity, and by the Entrepreneurship in the United States Assessment, highlight a number of both subtle and startling insights.

When compared to other asset classes, there is relatively little correlation between various private equity investing sectors. In other words, while the share  prices of publicly traded aerospace and software companies, for example, will move up and down more or less together, the success probabilities of that hot drug development company and that wind energy startup are reasonably uncorrelated.

Why is this important? Because it creates a far greater hedging opportunity than is available in public stocks, whereby the investment combination of the wind  startup and the drug development company has disproportionately less risk for the expected return.

The research also shows that the smaller the size of an equity financing deal, the less correlated is the success probability of that deal with the equity markets as a whole. A subtle, but critical point that had made a HUGE difference in investment returns over the past 10 years. Try on these two facts:

1) The venture capital industry as a whole - with average financing sizes over the past 10 years of greater than $8 million/deal - has returned ZERO percent to investors during that time frame.

2) In contrast, the average return on private equity classified as "early, or angel stage" had an average annual return during that same period of a whopping 32.9%! (Thomson/Reuters).

I talk about more about the application of portfolio theory to private equity and angel investing in the video below:



For our Friday live deals call, click here: www.growthink.com/livedeals

 


Angel Investing Returns - The Impact of the Stock Market


Categories:

The general misery that the public markets have subjected us all to over the past year (and really the past 10 years, with the Dow Jones, the S & P, and the NASDAQ all trading lower today than they were in 1999), begs the question - how does stock market performance affect angel investing returns?

The answer, on the one hand, is very obvious.  A falling tide sinks all boats.  So as goes the public markets, so go the private equity markets, of which both venture capital and angel investments are subsets.

This is best illustrated by the amazing (and depressing) statistic that in the last 10 years there has been more money invested into the venture capital industry than has come out of it.  A lot of effort for naught.

But in spite of this, and maybe even because of it, average angel investing returns this decade have been surprisingly, even shockingly good.  According to data compiled by Thomson Financial, average angel investing returns have been in excess of 20% annually since 1999.

Why is this and will it continue?  Well, it has to do with the difference between the "macro" and the "micro."

To hear more on this, please click the below.
 
 
 
 

 


Syndicate content

Most Popular
New Videos

"Business Plan
SHORT-CUT"

If you want to raise capital, then you need a professional business plan. This video shows you how to finish your business plan in 1 day.

CLICK HERE
to watch the video.

"The TRUTH About
Venture Capital"

Most entrepreneurs fail to raise venture capital because they make a really BIG mistake when approaching investors. And on the other hand, the entrepreneurs who get funding all have one thing in common. What makes the difference?

CLICK HERE
to watch the video.

"Brand NEW
Money Source?"

The Internet has created great opportunities for entrepreneurs. Most recently, a new online funding phenomenon allows you to quickly raise money to start your business.

CLICK HERE
to watch the video.

"Old-School Leadership
is DEAD"

"Barking orders" and other forms of intimidating followers to get things done just doesn't work any more. So how do you lead your company to success in the 21st century?

CLICK HERE
to watch the video.

Blog Authors

Jay Turo

Dave Lavinsky