Investment and Partnership Criteria
We seek to partner with highly capable entrepreneurs whose talents and experience will translate into successful and meaningful companies. Potential portfolio companies should meet the following general investment criteria:
In order to take full advantage of our expertise in the healthcare and business services sectors, we focus on growth stage opportunities where BMP can act as a lead investor and partner. We seek companies that have existing customers and products or services operating in markets where we have a high degree of confidence. On occasion we will invest in deals led by other high quality private investors who seek our active involvement to enhance a businesses’ growth strategy.
We typically serve as the lead investor in most transactions and are often the first institutional investor in the companies we finance. Board of Directors representation is important to us. This participation enables us to help develop growth strategies with our companies early in their development. We rarely become involved in the day-to-day management of our portfolio companies. Rather, we serve as advisors, assisting management with the development of business and financial strategies, preparations for private and public financing events, and the design of targeted merger and acquisition programs. The results of this approach have been highly rewarding.
We seek to invest up to $15,000,000 in any single portfolio company. Typical first round investments range from $3,000,000 to $10,000,000, with follow-on financings often doubling the original capital commitment. In select cases, we have made initial investments of as little as $1,000,000 with the expectation that we will significantly increase our investment through later commitments.
US healthcare spending is projected to grow from $3.2 Trillion in 2015 to $5.4 Trillion in 2024, when it will represent approximately 20% of GDP. The average annual growth rate over this period is expected to be nearly 6% which is 17% faster than the annual GDP growth. These cost increases are driven by the expansion of population coverage under the Affordable Care Act, the aging of the Baby Boomer generation, improved economic growth, as well as the increased use of new medications to treat chronic conditions. Other factors increasing demand are better consumer understanding of treatment options and corresponding outcomes.
Information technology advances will affect all areas of pre-clinical and clinical trials, including patient recruitment and selection, data capture, data analysis and post market surveillance. Adverse event detection, reporting and analysis will also be impacted. Superior outcomes characterization will yield more effective treatment protocols and clinical pathways. Soft tissue imaging, expert remote diagnosis, remote treatment, remote second opinion and data-based case management will all be advanced to control costs and improve outcomes. Our specific areas of interest include:
Examples of investments that we have previously made in this sector include the following companies:
Examples of investments that we have previously made in this sector include the following companies: