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Strategy

SalusInvest normally focuses on the risk and return characteristics of an investment rather than those criteria that are normally used to define venture investments. Nevertheless the investments are normally only made in medical technology businesses.

The principal characteristics of an ideal portfolio company investment would include the following:

  • A platform technology which has a least two principal market applications where the potential addressable global market is at least $300 million p.a. for each application.
  • The market applications address a genuine global, customer need which leads to improved patient outcomes, improved customer productivity and cost savings for the user.
  • Where large companies within the addressable market can become customers of the business’s products or services.
  • Intellectual property which is either patent protected or has highly confidential, unpatented algorithims or software.
  • Where the Company's revenues can enjoy high gross margins in the 60% plus region and where the business can begin to become profitable on revenues of ~$5 million p.a.
  • Where the Company's revenues are mainly outside the U.K. and of a recurring nature arising either from the use of services, single use devices or single use consumables or from a business model which generates revenues on a fee per use basis without the need for sales of capital equipment.
  • Where the total investment funds needed by the Company before it begins break even is in the $7-$10 million range.
  • Where the senior management team includes at least one executive who is experienced in the markets addressed by the Company and where others in the team are industry relevant with technology, management or sales experience.
  • Where the portfolio company board has one or more industry relevant non executive directors with experience of managing multi site business groups in the medical technology industry in Europe and North America.
  • Where a trade Exit can be achieved within 5 to 8 years

SalusInvest will only invest in companies based in the UK but where the majority of the potential revenues arise from North America and from Europe.

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