IVEY Medical Technology SymposiumWhat investors are looking for?Cameron Piron<br />June 10, 2011<br />
Investment Experience<br />Both sides of the fence:<br />2004 - 2010 	<br />Investee: Founded Sentinelle Medical<br />2011...
Investment Experience: Investee<br />Founded Sentinelle Medical 2004<br />Classic Boot-strap – First year spend $250K<br /...
Investment Experience: Investor Return<br /><ul><li>$85M acquisition + Earn out over two years
Alignment of investors is critical from start to end
Very important to satisfy your investors – need their votes</li></li></ul><li>Environmental Conditions<br /><ul><li>Larges...
Regulatory Hurtles Increasing
Private Equity and Venture Capital not engaged
Banks still not providing loans to small business
Governments entering restrictive spending
Technology is evolving at an exponential pace
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Cameron Piron

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Cameron Piron

  1. 1. IVEY Medical Technology SymposiumWhat investors are looking for?Cameron Piron<br />June 10, 2011<br />
  2. 2. Investment Experience<br />Both sides of the fence:<br />2004 - 2010 <br />Investee: Founded Sentinelle Medical<br />2011+ <br />Investor: 4 Medical Device Companies<br />
  3. 3. Investment Experience: Investee<br />Founded Sentinelle Medical 2004<br />Classic Boot-strap – First year spend $250K<br />Investment totaling $18M: <br />Family, Friends 2004-2005<br />Interested customers 2005-2008<br />Private investors 2007-2010 <br />2010 Revenue - $18M, 2011 Revenue - $30M (230 employees)<br />As independent company 2+ times revenue growth per year<br />Banks provided $500K operating line when doing $15M of revenue at 9% interest <br />SRED $1.5M in final year<br />Ontario programs were excellent (HTX, OCE, MITACS)<br />
  4. 4. Investment Experience: Investor Return<br /><ul><li>$85M acquisition + Earn out over two years
  5. 5. Alignment of investors is critical from start to end
  6. 6. Very important to satisfy your investors – need their votes</li></li></ul><li>Environmental Conditions<br /><ul><li>Largest market has been USA now 50% of market is O-US
  7. 7. Regulatory Hurtles Increasing
  8. 8. Private Equity and Venture Capital not engaged
  9. 9. Banks still not providing loans to small business
  10. 10. Governments entering restrictive spending
  11. 11. Technology is evolving at an exponential pace
  12. 12. Health care problems and opportunities also exponential
  13. 13. Opportunities abound, funding not available</li></li></ul><li>Financial Crisis: Impact on Healthcare<br />Interest to be 1/3 of overall spending<br />Approaching 40%<br /><ul><li> Demographics push higher health care costs
  14. 14. Overall debt on course of being unmanageable </li></li></ul><li>Environment: Deal Size – Med Device M&A Value<br /><ul><li>Deals increasing as health care companies need new product
  15. 15. Earn-out component increasing in deals – 50%/50%</li></ul>Source: Medical Device Daily, May, 2011<br />
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  18. 18. Investment Experience: Investor<br />Recently able to invest<br />Comfort in space that I understand well<br />Range from $2m to $150M valuation ($0-$25M Revenues) <br />Looking for…<br />Diversification from other investments<br />Well challenged business plan with flexibility<br />Return concordant with risk in company<br />Multiple generations of product planned<br />Tied in with world leaders in R&D<br />Buy in from Luminaries<br />Talented and balanced team<br />Lean operations<br />In-evitable products<br />Clear lead that is tied to the mast<br />
  19. 19. Concluding RemarksNever been a time with so many opportunities in health care.Large companies need to acquire to innovate. Funding is very difficult to obtain from banks, private equity and venture capital.Funding is coming from sources you would not expect.Personal experience aligns with other success stories in medical device field.Tend to see successful companies with similar traits. <br />

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