technology start-up investment analysis
DESCRIPTION
This document provides an overview of early-stage technology investment opportunities. It compares investment sectors , in Switzerland and neighboring Europe. We have indicated some relevant trends and investment structures. The document was prepared for education purposes from research using publicly available sources. None of the information represents an endorsement or a recommendation to invest. Readers are encouraged to verify the facts and complement with their own updated research.TRANSCRIPT
early-stage technology investment sectors Version A3 Angels-1.0 © Venture Concept 2011
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Summary This document is contributed for discussion for training on early-stage technology investment. It compares investment sectors , in Switzerland and neighboring Europe. We have indicated some relevant trends and investment structures. The document was prepared Venture Concept internal research from publicly available sources. None of the information represents an endorsement or a recommendation to invest. Readers are encouraged to verify the facts and complement with their own updated research. Summary ................................................................................................................................................................. 1
Investigation of investment sectors ..................................................................................................................... 4
Summary of sectors ............................................................................................................................................ 4
Telecommunications .......................................................................................................................................... 5
Technologies .................................................................................................................................................. 5
Opportunities ................................................................................................................................................. 5
List of start-ups ............................................................................................................................................... 6
Software for security and finance ...................................................................................................................... 7
Technologies .................................................................................................................................................. 7
Opportunities : ............................................................................................................................................... 7
Experts ............................................................................................................................................................ 8
List of start-ups ............................................................................................................................................... 8
ICT for travel & transport, hospitality ................................................................................................................ 9
Technologies .................................................................................................................................................. 9
Opportunities ................................................................................................................................................. 9
List of start-ups ............................................................................................................................................. 10
Experts .......................................................................................................................................................... 11
Industrial technology ....................................................................................................................................... 12
Experts .......................................................................................................................................................... 12
List of start-ups ............................................................................................................................................. 12
Cleantech ......................................................................................................................................................... 14
Opportunities ............................................................................................................................................... 14
VC Investments overview ............................................................................................................................. 15
Technologies ................................................................................................................................................ 17
Experts .......................................................................................................................................................... 17
List of start-ups ............................................................................................................................................. 17
Medical devices ............................................................................................................................................... 19
Technologies .................................................................................................................................................... 19
Experts .......................................................................................................................................................... 20
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Medtech sub-sectors ........................................................................................................................................... 21
Medtech is 30% of life sciences industry ........................................................................................................ 22
Medtech devices is a 300 B$ market .............................................................................................................. 22
Growth : up to 8% in early stage ................................................................................................................ 23
Valuations : 13 to 20 P/E .............................................................................................................................. 23
VC investment : stable, 25% of total ............................................................................................................... 23
VC investment in Switzerland : 50M CHF in medtech .............................................................................. 24
VC investment in neighbouring France : 35M$ in medtech ...................................................................... 24
Overview of sectors ......................................................................................................................................... 25
Cardiology ............................................................................................................................................................ 26
Opportunities : 84B$, 66B$ interventional ..................................................................................................... 26
Epidemiology ............................................................................................................................................... 26
VC deals : over 500M$ in cardiology .............................................................................................................. 27
M&A : over 5B$ at 6 X revenues ...................................................................................................................... 28
Regional start-ups seeking finance in 2010 .................................................................................................... 29
Industry structure : top 20 make 32% of industry ........................................................................................... 30
Orthopaedic ......................................................................................................................................................... 31
Opportunities : 43 B$ growing at 7-17% ........................................................................................................ 31
Epidemiology ............................................................................................................................................... 32
VC investments : 280M$ .................................................................................................................................. 32
M&A : 70% of volume, over 6B$...................................................................................................................... 33
Regional start-ups seeking finance in 2010 .................................................................................................... 34
Industry structure : top ten = 62%................................................................................................................... 35
Imaging ................................................................................................................................................................ 36
Opportunities : 16B$ and 7% growth ............................................................................................................. 36
VC investment .................................................................................................................................................. 37
M&A .................................................................................................................................................................. 37
Regional start-ups seeking finance in 2010 .................................................................................................... 37
Industry structure : top 3 = 75% ...................................................................................................................... 39
Diagnostics ........................................................................................................................................................... 40
Opportunities : 50B$, 6% growth .................................................................................................................... 40
VC investment around 250M$ ........................................................................................................................ 41
M&A .................................................................................................................................................................. 42
Regional start-ups seeking finance in 2010 .................................................................................................... 43
Industry structure : top 3 = 44%, top 10=80% ................................................................................................ 43
Surgical, Ophtalmo, Neuro, Urology .................................................................................................................. 44
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Opportunities : 16B$ ........................................................................................................................................ 44
VC investment : >200M$ ................................................................................................................................. 44
M&A .................................................................................................................................................................. 45
Regional start-ups seeking finance in 2010 .................................................................................................... 46
Healthcare information systems ...................................................................................................................... 49
Technologies ................................................................................................................................................ 49
Opportunities: .............................................................................................................................................. 50
Transaction history ....................................................................................................................................... 51
Experts .......................................................................................................................................................... 51
List of start-ups ............................................................................................................................................. 52
Sources ................................................................................................................................................................. 53
Events ............................................................................................................................................................... 53
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Investigation of investment sectors
Summary of sectors In the following pages, we have performed a 1st pass analysis of several sectors. We analyze opportunities around Switzerland. For each one the approach includes :
• Elements of macro analysis such as relevant trends and technologies. • Bottom-up information such as sample of start-ups met during recent events.
Sector Attractiveness Regional expertise Competition
IT security
ITC segment has been selected to narrow down the overall IT segment.
Good technology and access to domestic market.
High EU, US, Asia
IT tourism, transport
Logistics, travel & transport, hospitality and recreation : this is a somewhat unusual grouping of specialized niches benefiting from similar cloud, mobile, embedded electronics, image processing technology innovations.
Switzerland has the mix of business and tech advisors. There are also industrial players.
Fragmented except US.
Telecom
Attractive but not best-in-class as other countries (Nordic, UK, France, Germany). Good Swiss and French M&A players on adjacent telecom markets (consumer entertainment, industrial).
Existing industry contacts and expertise. Low Swiss expertise except niches.
High, Nordic, Asia, US. Corporate VC and dedicated VCs.
Cleantech
Growing segment WW. Regional catch/up public incentives and a few niches. The domain has increasing VC investment investments.
Electricity and power expertise
Very high China, USA
Life sciences
Medical devices segment excluding biotech. Option exist to narrow down to areas like interventional cardiology or orthopedics. Also enabling technologies. The domain has increasing VC investment. Subsector are described in more details in this section.
Leverage regional science know-how and manufacturing expertise
High, consolidation of corporate, established VCs.
Industrial
Generalist approach can be narrowed down to technology expertise in micro-tech, electronics and embedded software.
Modest. Can be executed in synergy with another sector.
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Telecommunications Mobile and fixed broadband telecommunication services are being re-shaped :
• Universal mobility, growing towards 4 billion users is expanding worldwide, especially Asia and BRIC.
• All eyes are on Apple and Android. User experience is driving consumer demand, offering new multimedia content, smartphones, tablets and even reshaping telephony
• More than applications but access to services. Cloud and mobile applications business is approaching the size of the content business.
• A global move of telco infrastructure to lean cloud-based operations drives the consolidation and cost of services down
• Industry players attempt to re-invent themselves with new service business models
Technologies We look for innovation that helps face these challenges.
• New mobile applications and media offerings, personalization using customer and social intelligence,
• Wireless applications enabled by NFC, RFID, machine to machine • Underlying technologies : micro-projectors, sensors, new displays, systems on chips (SoCs) • Telco software for massively scalable business processes improvements to generate
efficiencies, simplification of service delivery to end-users. • Telco software for payment, billing, and operations support.
Opportunities • EU VC investments in communications and networking were 184 M€ / 47 deals in 2010 and 64
M€ / 22 deals in Q1-3 2010 (Thomson) • Growth of smart-phones: 55% smart phone shipments as a percentage of total mobile handset
shipment (IDC 2010). • Mobile applications and content business (10B$ ?). 350K apps (Apple 250K, Android 70K)
reaching 1.8B$ (Gartner) • Augmented reality emerging as a basis for new user experiences combining multimedia,
image processing, 3D movement and feedback (haptics). • 3G wireless, 4G LTE technologies • Broadband and fiber-to-the-home/premises networking. • Telecommunications public stimulus plans boost service providers and equipment
manufacturers.
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List of start-ups The list is a indicative sample.
Name Description Opportunity Information
Apprupt Enables mobile app developers to market their apps on a on a pay-per-download basis to specific target groups of users within its network of publisher partners. Competes with admob, mobclix, getjar. Investor DT, Neuhaus. Hamburg.
5B app download. 250K Apple + 100K Android apps. 25 B$ mobile app market
www.apprupt.com
Axelprod Data transmission using the GSM network for industrial applications. CH
Decentlab GmbH
Monitoring solutions based on wireless communication technology. CH
DigiComCore SA
Software simulation for telecom systems
Fonapp Application and development framework for mobile devices. CH
Founded in 2004 by Esmertec co-founder
Gbanga Mobile, location-aware story-telling engine that blurs the boundary between your reality and the virtual world. Zurich
250K€ e www.gbanga.com
Getjar Mobile appstore with 75K apps for 26M unique visitors serving 350K developers. Second to Apple appstore. Investor Accel.
12.5 M€ raised Profitable since 2004 300% CAGR 17B$ app market in 2012 25% marketshare for Getjar
www.getjar.com
Insightsip Bluetooth low energy system-in-package module. Wireless video transmission in 5GHz RF band.Product ready with industry customers.
2M€ on 860K€ 2010 sales 350K$, cashflow + 2011 SiP market growth 15%
www.insightsip.com
Layar Augmented reality browser with 1M users, 5K developers producing 1.5K apps. Investors Prime Technology Ventures, Sunstones
1.2 B AR capable phones in 2013
www.layar.com
Les Alchimistes
Interconnecting call centers. CH www.les-alchimistes.com
Multibo Radio hood is an audio-enabled podcast targeting social networks. Start-up Munich and London
800K€ @ n/a 38M€ 2013e
www.multibo.com
plista Mobile web advertising for local advertisers. Recommendation and video ads + white label self-service ad booking. Expansion. HQ Berlin
3M€ on 1.25 M€ 5M€ revenue 2011 Serial entrepreneur
www.plista.com
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Software for security and finance This segment of the industry is facing the following changes: Security
• Increased internet security challenges (7% of consumers victim of fraud, 32% of NA SMBs hit by cybercrime several times)
• Protection required on PC but also within internet • Legislation on cyber security and privacy
Financial software • Fragmented IT back-end due to financial sector mergers and acquisitions • Front-end applications to due to acquisition of new customers particularly SMB and affluents, • Demand for on-line products (25% consumer usage of electronic banking, 21% Gen X-Y interest
in mobile payment, 3.6% of users of financial social networks) • New players entering the banking market : nimble entrepreneurial cultures, offer specialized
services and exploit profitable niches, such as monoline lending based solely on quantitative credit scoring.
• Financial governance and compliance requirements ( Sarbanes-Oxley, Basel II, BSA, ARC, Check 21.)
Technologies We will help identify opportunities for relevant technologies : Security
• Endpoint security, authentication, digital signatures • Security services for the cloud and virtualization infrastructure • Information-centric security such as in-device encryption • Business process security and policy management (entitlement management)
Financial software • Electronic trading tools, single-dealer portals • Data integration middleware. • Low-latency transaction processing. • Electronic invoice presentment and payment (EIPP) • NFC contactless payment
Opportunities : • Security software market 16.5 B$, 10% growth (Gartner 2010). • Consumer security software market 4.2 B$, • End-point (enterprise) software market 3 B$, • network services spending 9.1B$ • UK SMB spending on managed security 42 B$ (2007)
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• Appliance-based security for e-mail CAGR 25% • Appliance-based security for SIEM and secure Web gateway CAGR 20% • Chinese video surveillance market483 M$.
Experts • Olivier Trancart, A3, former VP Finance Oracle, System Access
List of start-ups The list is preliminary and reflects opportunities currently available in our network. Name Description Opportunity Information
Adeya mobile security solution, user-friendly and compatible with most existing mobile phones
www.adeya.ch
Amalto Business document exchange in the cloud, mainly active in oil and gas industries in GCC but expanding in other verticals. Competition Ariba, GXs, ADP. HQ Paris. Investors Bas and Success Europe
2M€ on 2M€ 5B$ procurement processes in oil&gas
www.amalto.com www.b2een.com www.onget.net
Axionics Digital identity in your pocket www.axionics.com
Clear2pay Open Payment Framework (OPF) enables financial institutions to improve internal payments processing efficiencies whilst at the same time providing their clients with better payment services that are faster, with richer payments related information. Competes against ACI, Fundtech, IBM. HQ Belgium. Investors Intel, Iris capital, PMV, Quest for growth, …
50 M€ on 110M€ in last round. 43M€ revenue 2010 Tier 1-3 financial institutions.
www.clear2pay.com
Commonit Entreprise web security and mobility. Browser sessions running on a server access internal or external resources. The user accesses sessions using remote display technology. F Rhone Alpes
500K€ on 500 K€ 2010 sales 200K€
www.commonit.com
e24 AG Mobile payment and transaction management
IRIS Internet Risk Insurance Services SA
security monitoring and management platform, with correlation
www.swissiris.com
KeyLemon SA Innovative and convenient services based on biometric identity authentication, based on face and speech recognition, for all Internet users with a webcam.
www.keylemon.ch
Khamsa SA email and mobile phone security
NetGuardians IT monitoring platform, for companies seeking to improve their IT operational governance. and protect from data leaks, forbidden access and unauthorized use of privilege.
www.netguardians.ch
Secu4 Protection of people and valuables based on wireless technologies
BAS /Jade investment
www.secu4.com
Sensometrix SA contactless biometric terminal based on palm vein recognition
Nicolas Rebetez www.sensometrix.ch
Sopima Online contract management moves negotiations on-line and supports collaboration between parties. Sopima is built very secure and the environment is constantly audited – as safe as a bank.
www.sopima.com
Sysmosoft Mobile security solution, with cloud and device software www.sysmosoft.com
Visiosafe Social network enabled video surveillance network. Abnormal behaviors detection and sharing them with network of interest. 150 CHF Wifi IP Pan/tilt Infra-Red camera ; 15 CHF / month Saas management service . competition: alarm systems (500-15K CHF) or Saas without all features.
Market USA 20M homes with surveillance, 2M burglaries (CH 100K, 70K)
www.visiosafe.com
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ICT for travel & transport, hospitality Challenges in these industries include:
• Worldwide competition in the airline industry resulting in revenue drop and refocusing to specialized markets
• Increased requirements for security and safety in public transportation • On-line recommendation, location, reservation systems driving customer purchasing creating
numerous marketing channels. • Need to target new customer segments and customer engagement products in hospitality • Complex and costly human resource management of part-time flexible workforce • Changing patterns of entertainment and recreation
Technologies • Integrated reservation systems covering lodging, multimodal transport (airlines, car, train, bus)
recreation and overall customer self-service. • On-line marketing services including mobile, location, social networking recommendations. • Hospitality management solutions including POS, headsets, inventory, payment, employee
training/scheduling • Transport and logistical process management :bulk inventory (sorting / repackaging goods),
order fulfillment (labeling, pricing), supply chain integration • Just-in time shipping : RFID tracking, warehousing automation, fleet location management. • Technology for media distribution : lighting, display, sound
Opportunities • International tourist arrivals fell by 4% in 2009 to 880M. • Tourism in EU is expected to grow 3% in 2010 and accelerate in 2011, when 2008 levels will be
regained. EU tourism industry generates 5% of EU GDP, with 1,8 million enterprises employing 5,2% of the labor force (9,7 million jobs). Including related sectors it indirectly generates 10% of EU GDP.
• In June 2010, 100 million Americans visited the travel site sub-categories. Travel transactions sites, 32 percent to 5.2 million ( Viator.com #1 in with 1.1 million). Hotels/Resorts sites with 36.6 million (Marriott #1 with 6.5 million).
• "Sheraton Hotels & Resorts announced the launch a website with Facebook Connect to their friends and family for 2-way dialogue about travel experiences.
• (POS) technologies : tableside payment options can manage forecasting, financials, marketing, customer loyalty and inventory control are cited by operators as most important.
• In-room innovations: rich user interface, flat panel display, touch screen at the bedside, greeting at the door, automatic lighting and curtains, RFID-enabled door locks, message indicators sent to the TV television, room settings for every guest ( "good night" button let's guests turn off the lights, TV and music, close the curtains, and enable the privacy notification)
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• Mobile development is occurring within the pizza segment, as Pizza Hut and Domino's both continue to tap next-gen customers through iPhone apps and on-line ordering respectively.
• 300 hotels are now involved in a potential legal action against TripAdvisor, concerned about alleged defamatory reviews appearing on hotel pages on the site.
List of start-ups The list is preliminary. Name Description Opportunity Information
Abonobo
Restaurant guide with single-click access to restaurants' images, menus and notably special offers. Exposing these offers attracts users and makes the application an ultimate tool to capture the undecided audience.
Self-funded http://abonobo.com/
Arxit
FoxyTour Intelligent city, museum and trip guide. It is remarkable of its geolocalization technologies, decision support system (the world's top) and virtual tagging.
http://www.arxit.ch/
Aviq Digital media distribution, over the topo TV for consumers and hospitality solutions. TipTV IPTV device. Zurich
33B$ 2013 market for IPTV equipment, 290 M householdes
www.aviq.com
BMOB On-street sensor-enabled automatic parking management and payment system. Seed. Lugano
Seed www.bmob-park.com
CityOnline.net e-guide access on the web with any mobile device. CH
www.cityonline.net
EverdreamSoft / Moonga
Simple, ergonomic and innovative products to a public that values mobility
Food Arena Geolocalization –enabled ordering , deployed for more than 250 Swiss restaurants, pizzerias and kebab shops.
http://www.foodarena.ch/uk/
Frogbus Virtual low-cost bus service.On-line sales and ticketing across intercity and airport bus operators. Competition Eurlines, National Express internal services. Fleet tracking under development. Development phase . Ireland and France.
1.5M€ on 750K€ Market 500M€ in FR, users <25 >55 airport users
www.frogbus.com
GAB Gestion de véhicules pour le transport routier. Seed www.gabtechnologies.com
Geoguides GeoGuides is a provider of mobile, location-based software products and services. Development using GeoVector’s patented directional search and augmented reality technologies. World Surfer location browser on mobile markets worldwide.
http://www.geoguides.ie
GetYourGuide Online platform for tours, attractions & activities for local suppliers of sightseeing tours, excursions or outdoor products.
www.getyourguide.com
Horizon Info Solutions
Promoting remote resorts for online booking through a portal.
www.resortroute.com
HouseTrip SA Online marketplace for holiday rentals. Property owners will be able to auction short-term rentals of their properties and correlatively users will be able to bid for a stay.
http://www.housetrip.com/
Ingecom Sàrl ACTIVE TAG to track & trace & streamline logistics.
iTaste iTaste makes choosing a restaurant fun and easy. This is second generation Web2.0 applied to mobiles, it's always available, it's interactive, it's relevant and fun. CH
www.itaste.com
MadeInLocal Social network for local life. Keep in touch with your friends, merchants and events near you.
Seed http://www.madeinlocal.com/
Moonga (EverdreamSoft)
Simple, ergonomic and innovative products to a public that values mobility
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Name Description Opportunity Information
NeuroPie Solutions AG
Airport operation intelligence software. Provides in-depth information on key processes such as passenger flows, baggage sorting, security controls, check-in and car park capacity utilization. Airport Performance Management (APM) and Collaborative Decision Making (CDM) software. Zutich.
Jürgen Weder www.neuropie.com
Palisis GmbH Portable business solutions for passenger transportation companies, tourist businesses and others.
www.instantticketing.com
Red carpet Web-based hotel property management system 10€/room. HQ .
www.redcarpetsoftware.com
routeRANK routeRANK finds and ranks the travel routes, based upon preferences such as price, travel time and CO2 emissions, combining rail, road and air.
www.routerank.com
Spoil Me Websites for wealthy consumers Seed www.spoil-me.com
YoureUp Car pooling software solution. 500K @ 1.6M CHF 50K users over 5 years 2012e 3.6 MCHF revenue
Wazzup SaaS for realtor sector. 2500 current real estate customers. Adverting revenue model. Profitable in 2010.
500K€ on 600K€ 2010 sales 1.2M€
www.wazup.com
Provatis SA Fleet management for enterprise and consumer security solution for cars.
Seed www.provatis.com
Experts Example of regional business advisors :
• Prof. Lukas Ritzel, IMI, Luzern • Prof. Ray Iunus, EHL • Prof. Antoine Wasserfallen, EHL
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Industrial technology Manufacturers are generally facing the following issues:
• increased global competition • changing patterns of customer demand • escalating business costs • problems in implementing new technologies • competitive business pressures
Opportunities include innovation and systems that addresses these issues:
• SCM Supply Chain Management – Suppliers oriented • ERP Enterprise Resources Planning – Production oriented (flexible production planning,
inventory tracking, work orders tracking, logistics and operations) • Micro technology • Robotics • Sensors and actuators • Embedded software as part of manufacturing automation
Experts We have industrial contacts.
• Alen Ugnat, Macdal International (microtechnologies) • Luc Olivier Bauer, Nano dimension (nanotechnologies) • Marie-Laure Berthié, EPFL (software, electronics and sensors)
List of start-ups The list is preliminary.
Name Description Opportunity Information
AgoraBee SA AgoraBee provides a complete platform for active RFID (Radiofrequency Identification) and location-aware WSN (Wireless Sensor Network).
Wayenberg Alexandre
Attolight Measurement tool for nanostructures with very high spatial and time resolutions.
Samuel Sonderegger
Canatu Printable electronics and photovoltaic, patented carbon based material for energy and electronics industries. Espoo, Finland
5 M€ @ X 12.4 M€ 4B€ touch sensor market 38% CAGR
www.canatu.com
Celeroton AG Ultra-highspeed electrical drive systems for renewable energy generation
Dr. Martin Bartholet
Dacuda Document scanning with handheld devices. Dacuda's technology bases on real-time feedback, video-stream stitching, and workflow integration. Dacuda's strength and competence is software which can stitch together hand-scanned content. This technology is used to build the world's first scanning computer mouse.
Alexander Ilic
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Name Description Opportunity Information
Dacuda AG Technology based on optical sensors for use in computer mices.
Dr. Alexander Ilic
Dectris Next generation x-ray detectors Christian Broennimann
Femto Tools Design and fabrication of high quality measurement and handling instruments for the micro and nanodomain.
Nagy Zoltan
Future Instruments
System for transforming any surface into a touch sensitive interface.
Greg Kellum
Greenteg Thermoelectric generators (TEGs) and cooling elements (TECs) in a totally new manner, resulting in flexible and low cost thermoelectric devices. Zurich
www.greenteg.com
Imina Technologies
Micromanipulation solutions. The extreme simplicity of the miBot, an ultra compact mobile micro-robot with nanometer resolution motion, enables to significantly reduce the preparation time for setting-up an experiment and makes complex manipulations at nanoscale very easy to perform.
Benoît Dagon
iNoCs Semiconductor modeling software Federico Angiolini
www.inocs.com
Lemoptix AG Development of next generation optical MEMS (micro-electro-mechanical systems)
500K$ over 1.5M$ @ 7M$ 2010 sales 600K$ cash flow positive 2012
www.lemoptix.com
LFCM Fluorescence microscopy is a widely used technique in life sciences. However, high performances in detection come with a limitation on the area to be observed, slowing down large scale studies. Parallelization is a key to increase the throughput and the Large Field Confocal Microscope (LFCM) provides such a solution in the fluorescence imaging domain. The time needed to perform biochemical analysis or tissue studies is therefore substantially reduced. Furthermore, former impractical studies become possible.
Seed
Nanograde Custom production of nanoparticles and the development of products by the use of such nanoparticles.
Halim Samuel
NanoInc Nanoparticle based printed electronics for flexible and disposable RF identification (RFid) tags
Cédric Dockendorf
Nanolytix Detection of nano-particles performing in-house and mobile service analysis of samples as well as the development of innovative technologies to produce and distribute validated turn-key
Christopher Latkoczy
Piezosens Piezoelectric resonators for high-performance sensors in bio and medical applications.
Milyutin Evgeny
Senseor Surface acoustic wave sensors for temperature, pressure and stress measurement. Investors Vizille capital, Sudinova, Success Europe. 20 industrial customers in energy, transportation, automation, healthcare. <<competes with thermocouples and strain gages. HQ Mougins, France.
1.5M€ on 2.3M€ Revenue 2010 1.8M€ cash flow positive 2011
www.senseor.com
Senseplus Microelectronics
3D image sensors ICs for the consumer market Paolo Orsatti
Simplysim Saas software tools for building 3D and virtual reality and augmented reality. Applies to simulation, marketing. Initially corporate R&D customers, 700 beta users. Competition 135 suppliers including Unity3D, Dassault/Virtools. HQ Sophia Antipolis
1M€ over 70K€ raised from SBA, 170K€ sales 2010
www.simplysim.net
Spectralus Periodically poled nonlinear crystals and laser products. PPMgOLN is used for conversion of infra-red laser into wavelengths such as blue, green and yellow (400~600nm) . Applications include instrumentation, laser displays, biomedical, scientific. Competes with Corning, Osram, Novolux. Production Armenia, HQ Russia and USA
15M€ over 6M€ investors S-Group V. 9Me sales 2011e
www.spectralus.com
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Name Description Opportunity Information
Spinomics Automated and miniaturized systems enabling extraction, manipulation and detection of biochemical substances.
CEO Tomas Svoboda CTO Amar Rida
Funded
YanaCo Magnetic nanobeads for protein separation and purification Robert Grass
Cleantech Cleantech covers many different segments such as : energy, air, water, waste and sustainability. Value creation requires multi-disciplinary approaches with solid engineering, scientific and business background.
Opportunities The investment opportunities are driven by the following trends
• Favorable public policies such as 150B$ stimulus investments in energy-efficient infrastructure, climate change programs ( USA 56B$, China 47B$, SK 28B$, EU27 ~23B$). However public intervention can bring unpredictable distortions in this market segment.
• US VC investment in cleantech declined 59% in Q3 2010 to 625M$ into 58 deals. The decrease in Clean Technology investments was driven by a lack of large rounds, which has been seen in previous quarters. (Thomson)
• Cleantech EU investment 155 B$, 5% growth (2008) of which 51B$ in wind, 35B$ in wind. EU VC investments in renewable energy were 383 M€ / 122 deals in 2010 and 64 M€ / 33 deals in Q1-3 2010 (Thomson)
• • Innovation from 2000 cleantech start-ups worldwide, the #100 global cleantech 2010 includes :
USA 55, GB 11, D 7, ISR 5, SE 4, FR 3, CH 1(Landys & Gyr smart metering solutions have raised 250M$ VC funding).
• 6B$ VC-funding of 600 deals (2009) supported by IPO market. In 2002-05 clean tech attracted 6% of total VC in NA - in 2006-09 up top 18% of VC investments. Specialist clean tech investors include Braemar Capital, Chrysalix Energy, Climate Change Capital, DFJ Element, Emerald Technology Ventures, EnerTech Capital Partners, Environmental Technologies Fund, Expansion Capital Partners, Global Environment Fund, NGEN Partners, Nth Power and Rockport Capital.
• Compared to North America, Europe (except Germany) is still lagging behind, as part of the innovation comes from private SMEs which are not open to private equity. In VC investment was 360M$ in 56 deals in 2007 and 1.8B$ in 2009.
• Swiss investment activity funds ( Pictet 650M$ + water 2.4B$, Rotschild cleantech 400M€, Sustainable asset management) and VCs (17+5 MCHF Swiss VC investments in 2008+09, 5.2.5% of VC investments, Emerald cleantech 300M€+150M€ 46 deals, Index est. 30M€ cleantech- below EU and US investments)
• A boom-and-bust scenario looms in energy especially in by solar and biofuels. Swiss energy funds 1-year/3-year returns are ~-15% / -50% returns in 2010. Solar prices drop -40% in 2009 and 0% market growth. Global investment in renewable energy 600B$ by 2020.
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• Innovation gap in air, water, and waste technologies. (126 M$ cumulative VC investment in waste since 1995)
• M&A market from corporations making clean tech venture investments (70 B$ in 1995-2004) include: BASF, Boeing, Chevron- Texaco, Eastman, GE, HB Fuller, Honda, Intel, Norsk Hydro, Mitsubishi, Motorola, Royal Dutch Shell, Schneider Electric, Siemens, Suncor and Unilever
• Cleantech public catch-up initiatives in Switzerland (Geneva, SECO, Private) • Swiss market leaders examples : Meyer-Burger/3S and HCT silicium manufacturing equipment
for solar hold 80% market share. Oerlikon solar thin film solar technologies. • Until 2008, London’s AIM was favored as IPO market 124 amongst clean tech companies, over
NASDAQ and Frankfurt exchanges (solar IPOs include the Norwegian Renewable Energy Corporation (REC) raising 1B$ on listing, valuing the company at 8B$)
VC Investments overview
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Technologies Based on regional industry and academic expertise we can monitor and support opportunities such as
• Smart grid, storage, energy measurement, regulation systems and related device / software • Cleantech technology enablers : materials and manufacturing equipment • Industrial cleantech : waste and CO2 management • Transport optimization, fleet management, hybrid cars/public transport • Renewable energies technologies : PV, solar/geo thermal, pumps • Water treatment
Experts Network of specialists include :
• 160K Swiss employees, 3% GDP (Swiss cleantech association) • E4tech, François Vuille • Cleantech Alps, Eric Plan • Swiss Biotech, Thierry Schwitzguebel
List of start-ups The list is preliminary. Some start-ups listed in transport software section.
Name Description Opportunity Information
Alertme Home energy monitoring. Web and mobile home energy management . Investors Good Energies, Index, Vantage Point, SET. HQ London.
15 M£ on 13 M£ 50 M€ revenue 2012 e 1B€ equipment in home energy market 28M users by 2015.
www.alertme.com
Avantium Ccatalytic process to convert biomass feedstock into YXY molecule to make materials and fuels. Investors DFJ, Aescap, Capricorn, ING.
15 M€ F on 78 M€ 11 M€ revenue 2010
www.avantium.com
Belair biotech Waste Water treatment research and Development. Geneva
3MCHF on 400KCHF
Domteknika Softcars Clean and high performance urban vehicles with sustainable life cycle (production - use - recycling)
http://www.domteknika.ch
Ecospeed internet-based software tools for calculating energy consumption and greenhouse gas emissions
Enairsy Sustainable energy storage solutions, based on the innovative hydro-pneumatic and power electronic technologies (HyPES) .
Seed http://www.enairys.com
Enecsys Micro-inverters and grid management for PV panels with 25 yearsw lifetime (vs. 10yrs with string inverters) . Competition Enphase, SMA, Fronius. HQ Cambridge
20M€ @ X 13M€ 2 B€ 7 GW market 30% CAGR
www.enecsys.com
Eotheme
Generation plume
Disposable / washable diaper for babies. New textile and industrial design to reduce costs and waste. Competition : Pampers, Huggies and 4 other eco-brands Paris
500K€ on 270K€ @ 2.5M€ 185K€ sales 2010 Target 1.5% of 725M€ market in France
www.hamac-paris.com
Gerocco Solution helping people managing their home energy consumption. Based on electronic devices and web interface, this solution provides simple advices. Geneva
Seed www.geroco.ch
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Name Description Opportunity Information
Hop-Cube Retail and manufacturing environmental label and on-line information system. Seed. Competition Greentext, Quantis, MyCO2. HQ Paris
500K€ on 100K€ Brand value on FR market
www.hop-cube.com
Iland Consumer solutions integrated in the field of systems and solar technologies. Applications for leisure, expeditions, isolated environments, island situations
BAS investment Estimated 200K CHF
http://www.iland-solar.com
INDEOtec Systèmes automatisé de dépôt R&D par procédé PE-CVD/PVD pour applications photovoltaïque, pour les producteurs de cellules/modules silicium couches minces
autofinancement www.indeotec.com
Innotech Solar
Repowered non-prime solar cells (defects). HQ Oslo, office Zurich, Shanghai. Investors Northzone Ventures, Investinor, Sustainable technologies fund.
35 M€ on 18 M€ 37 M€ revenue 2010, cash flow positive PV market CAGR 30%
www.innotechsolar.com
Kebony Alternative to tropical wood using proprietary wood modification. Investors HQ Oslo
12M€ @ 45 M€ 5 B€ tropical wood market, 2B€ preservative wood market, 5B€ decking market
www.kebony.com
Metalysis Electrochemical reduction technology changing titanium and tantalum production, replacing 70-years old Kroll process, reducing pollution and increasing production ratios. Investors : DFJ Esprit, Cambridge Capital, … HQ Rotterdam.
25 M £ investment to date. 4 B$ Ti production, 800M$ Ta
www.metalysis.com
Mygreenlife Information program on lifestyle that in tune with the environment.
low
NeoCarbon Patent pending industrial high throughput CO2 remediation and biomass production project seeks investors
5MCHF www.neocarbons.com
Nheolis Small wind turbines, 20K€. Early stage. Investors . SBA, Success Europe, Garlaban Holding, ITI group.Aix en Provence, JV in China with Kehua #1 UPS manufacturer
5M€ on 2.8M€ 2010 sales 1.6M€ cash flow + 14B€ market by 2020
www.nheolis.com
Nolaris Solar thermal modules for artificial circular island of large dimensions, up to several kilometers in diameter. It consists of an outer torus and a membrane.suring the load of the solar panels.
Investor Jade Invest www.nolaris.ch
Pragma Industries
Fuel cells manufacturing at less than 1K€/kW (50% of competition) for <200W segment (remote sensors, UPS for telecom, traffic regulation). Investors Finaqui, XMP angels, Herriloa, Sebadour. HQ Biarritz, France 64
3M€ on 900K€ 300K€ sales 2010 1.5 M€ sales pipeline
www.pragma-industries.com
SensorScope Sàrl
Environmental monitoring sensor and cloud software
www.climaps.com
Smixin Hand washing system offers a new sensitivity to water and hygiene: it reduces water consumption by 90% .
Creaholic spin-off ~500KCHF
www.smixin.com
Sustainable reference
B2B and consumer supply chain management and directory focused on sustainability. Spain
No clear model. 200K€ 3F funding
www.sustainablereference.com
Syneola Small to medium size vertical axis wind turbines for building integration and hybrid applications large charging stations for electric vehicles.
Seed www.syneola.com
Vela Solaris AG
Simulation Software for the Renewable Energy Sector
VirVe Precise range estimator to deliver valuable information to electric vehicles.
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Medical devices The healthcare industry is adapting to the following changes :
• Demographics trends and emerging markets as a source of future growth for the medtech industry
• Increase the longevity and quality of life of the elderly population • expectation for personalized, patient focused, care delivery • Growing chronic diseases prevalence. • Minimally invasive procedures, biotech solutions provides solutions for cost containment. • Further industry consolidation and M&A will accelerate growth.
Technologies Switzerland has a mix of expertise : bio, pharma, nano/micro and ICT to exploit the bio convergence technology trend. Bio convergence is seen as a general driver for changes. Essentially converged medical technologies fall at the intersection between sectors.
• Device drug delivery : drug eluting stents, implantable insulin pumps • Nano-biotechnology : controlled release, nanotech coatings such as antibiotics, silver, • Nano-sensors for diagnostics • Smart devices : implantable insulin pumps with glucose levels monitoring, controlled
prosthetic limbs.
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• Stem cell research, and in particular the use of human embryonic stem cell-based (hESC) therapies is a controversial topic
Experts • Example of regional business advisors : • Jacques Essinger, PhD • Benoit Dubuis, PhD, Eclosion • Prof. Thierry Berney, A3 HCUG • Prof. Nikos Stergiopulos, EPFL
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Medtech sub-sectors The opportunity :
• Medtech sector amounts to 30% of the life science business with a growth of 8%. • VC investment in EU is 700 M$ (55M$ in Switzerland + neighboring France, 25% of all VC ).
Sector Attractiveness Regional strength Competition
Cardiovascular
500M$ VC investments and 80B$ market, 3% average growth up to 50% in specialties (stents). M&A at 5X revenues. Most attractive sector due to size and growth, particularly in interventional cardiology,
Switzerland has the mix of business and tech advisors. Top industrial players present.
Fragmented except US and 6 companies above 1B$. Local VC competition (MDS)
Orthopaedic
280 M$ investments and 43B$ market growing 7%, 28% in some specialties (spine, orthobiology, extremities). 6B$ M&A market at 5X revenues. Most attractive sector due to size and growth.
Some market leaders in Switzerland. Access to expertise.
Consolidated industry. Top 7=60%
Imaging
Estimated less than 100M$ investments in a 16 to 19B$ market, 6% growth. There are niche applications emerging. PACS segment still growing. More mid-market opportunities.
Modest. Highly consolidated industry. Local VC competition (Ares)
Diagnostics
250 M$ investments 50B$ market, 6% growth, up to 68% in cancer diagnostic. The new developments are at the frontier of biotech. B$ M&A activities at 5Xsales valuations. 10XM$ follow-on round investments required make the sector capital intensive.
Significant expertise in Switzerland with market leader (Roche).
Hyper consolidated industry top 3 =44%.
Surgical
Around 50 M$ investment, 7 B$ market growing at 9 % Manufacturing expertise in Switzerland,
Ophtalmo
Around 50 M$ investment, 6 B$ market growing at 5 % Example : Sensimed.
Neuro
Around 50 M$ investment, 2 B$ market growing at 19 % Significant expertise in Switzerland
Urology
Around 50 M$ investment, 1 B$ market growing at 12 % Low
e-health
Recent trends open opportunities in e-health and m-health but innovation has been slow in hospital and clinical ITC. Possibly a catch-up due to public policies.
Modest. Leverage Swiss life science expertise.
High EU, US because the market leaders are in large countries
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Medtech is 30% of life sciences industry This study excludes on purpose the Pharma and biotech sectors as the size and timeframe of investments make them unsuitable for our strategy. The following definitions and statistics allow a comparison.
• Medtech : development and marketing of equipment (medical devices) and procedures with which diseases may be prevented, diagnosed and treated.
• Pharmaceuticals : research, development and marketing of new and innovative therapies. These large pharmaceutical companies often co-operate with smaller biotech companies or eventually acquire them.
• Biotech : focus on research and development based on biological processes, genomics, recombinant protein engineering, and molecular targets. Typically use biochemistry, microbiology and process engineering to find new therapies and diagnostics to treat diseases.
Sector # listed
companies
Market size B$
Growth %
Medtech 200 300 9% Pharma 20 600 7% Biotech 400 70 15%
Medtech devices is a 300 B$ market The medical device sector has historically been one of the most attractive with 8% CAGR since 1990 and close to 300B$ revenues1. The industry’s results were good in 2009, especially net income for non-conglomerates in EU but also in US. Europe has a track-record of innovation in this field : the first implantable pacemaker was developed in 1958 in Sweden, the first coronary balloon angioplasty in 1977 in Switzerland, the first total disk replacement occurred in 1989 in Germany, and the first percutaneous valves in early 2000's in France and in the UK.
World (2009)
USA (2008)
Europe Switzerland
Companies 11’000 Revenues 294B$ 136 B$
(incl. supplies 35B$)
94 B$ 2500 M CHF
Employment 422’000 530’000 40’000 R&D 5.8 B € Products 100’000 FDA
approved
1 Sources : McKinsey Group, Espicom , others
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Growth : up to 8% in early stage For publicly traded medtech 2010 companies revenues were below the 11% growth in 2008.
CAGR 2009 non-conglomerates
Public
EU
US
WW
Revenues
8%
1%
0.3%
Net income 29%
11%
R&D investment
4%
1
Valuations : 13 to 20 P/E
Healthpoint Capital Index (2010)
P/E PSR
Medical Technology 13.6
2.6
Orthopedic Companies 19.6
2.8
Cardiovascular 18.1
2.4
Dental 3.9 18.5
VC investment : stable, 25% of total VC funding has remained relatively stable, although not to the level of the 2006-7 period, and is expected to grow in 2010. Medtech is the second largest investment sector, behind information and telecommunications, approximately 24% of EU VC investments. In 2009, 87 medical device deals totalled $ 719 million and average deal size was 8.5 M$.
• Worldwide VC funding 3.4 B$ (2009), 2.4 B$ (1H 2010), $517 million 61 deals (1Q 2010) • Europe 701 M$ (2009), 2.8B$ including biotech (2007-2008)
o Switzerland : estimate of 50M$ o France : rough estimate of 100M$ and 35M$ in Rhône-Alpes/Sud
• US 2.7 B$ (2009) • Worldwide capital raised in 2009 13.1 B$
• The National Venture Capital Association (NVCA) has formed the Medical Innovation and Competitiveness (MedIC) Coalition to lobby in favour of medtech innovation in the course of US healthcare reforms .
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VC investment in Switzerland : 50M CHF in medtech On average of 260MCHF/year is invested in life sciences2 and we estimate that 20% of this goes to medical devices ( approx 50 MCHF). The list of sector-focused VCs is indicated later in this document.
VC investment in neighbouring France : 35M$ in medtech On average of 733 M€/year is invested in life sciences in France. We estimate that 35M$ is invested in neighbouring France for medical technology. A sample of French and European medtech focused VCs is indicated later in this document.
• Centre-est & du Sud-est et Rhône-Alpes (Rhône-Alpes, Provence-Alpes-Côte d’Azur, Auvergne, Bourgogne)
• Life sciences : 21 deals, 52 M€ in 1H 20103 • Medtech estimate 2010 35M$ ( 25 % of medical and biotech, 2X)
2 SECA biotech as asset class Booklet No.5 p.160, 2003-2005 average 3 Source : www.afic-data.com
Financement biotech mondial B$
0
5
10
15
20
25
30
2003 2004 2005 2006 2007 2008 2009 2010
IPO Augmentation de capital VC
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Overview of sectors For reasons of growth and profitability, the most attractive segments are orthopaedics and cardiovascular.
Sector VC investments (M$)
Revenue (B$ )
US revenue ( B$ )
Growth (%)
Orthopedics 280M$ 2008
16.5** 43* 7% , 15%**
Cardiovascular > 525 M$ tracked
16.2** 77* 2.8% *, 24%**
Ophthalmology 5.7** 5%** Surgical 865+ 7.7** 33* 9%** Neurology 2.2** 19%** Urology 0.8** 12%** Diagnostics 440+ 22.1** 4%** Imaging 16+,
18.9** 6.8+ 5%**
(B$ 2010e, 2009+, 2008*, 2003** )
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Cardiology
Opportunities : 84B$, 66B$ interventional Growth in cardiology has varied across segments. The market for interventional cardiology has been growing with increasing drug-eluting stent (DES), bio-absorbable and bifurcated stents, intravascular ultrasound (IVUS) equipment and vascular closure devices. European market is growing with rising number of percutaneous transluminal coronary angioplasty (PCTA) procedures. Price erosion is important in the more mature product areas, such as angioplasty balloons and bare metal stents. Unit growth rates in IVUS and vascular closure devices are also expected to fall over the long term.
Sector Revenue (B$ )
Growth (CAGR %)
Interventional 66, 60* 2.4% * Stents (DES) 3.4*
4.5 (EU) 50%
Catheters 7.1, 6* 10.2%* Accessories 1.2** 12%
Rhythm management Pacemakers 3.1** 6% Defibrillators 2.5** 12% Congestive heart failure 1.6** 60% Surgical, valves, aneurysm, closure
2.5** 17%
Diagnostic 13* 2.6%* Other 1.1** 8%
Total 84 40 (NA 2011)
2.8%, 1.6%*
(B$ 2010e, 2008*, 2003** ) European markets :
• interventional cardiology market 648M$ (2009) • Germany 24% of market (2009) • France increase at a faster rate. • UK cardiovascular devices market $1.3bn, growth 4.7% (2009)
Epidemiology • Heart disease and strokes account for 21.7% of deaths worldwide, • cardiovascular disease accounts for 30%. • in 2015 20 million people will die from a cardiovascular-related condition. • (WHO statistics 2007)
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VC deals : over 500M$ in cardiology Recent financing rounds in 2008-2009 (523M$)
Company VCs Amount (M$ )
Comment
Advanced Cardiac Therapeutics
NBGI Ventures 5 B Cardiac ablation technology
BMEYE 8 B Dutch noninvasive cardiovascular monitoring company
CardiAQ Valve technologies
6 A Trans-catheter mitral valve implantation
CardioInsight Technologies
Draper triangle ventures, Case technologies ventures
6 B Electrocardiography mapping technology
CardioMEMS 38 Wireless sensing
Cardiovascular Systems
27 A 11 B
Distribution Agreement With Asahi Intecc, Agreement With Invatec - Revenues Of $56.5 Million
Carmat, F Public grant 46 total artificial heart system
CircuLite 32 C Micro pump to help circulation in severe heart failure patients
CoAxia Sofinnova Partners
21 D NeuroFlo technology for acute ischemic stroke,
Coherex Medical
16 B 22 A
Hole in heart
Embrella Cardiovascular
BioStar Ventures, MedFocus Fund, Edwards Lifesciences
7 B Embolic protection tech firm
Endoscopic Technologies, Estech
NBGI Ventures 8 Cardiac surgery device manufacturer
Endosense 36 Swiss cardiac arrhythmia treatment developer is to step up European commercialisation of its TactiCath force-sensing ablation catheter.
Micell Technologies
5 bridge loan
rapid absorption polymer drug-eluting stent (DES)
Nobita Therapeutics
BA 1 Heart implant
Replidyne 40 B 62 D
Stentys Crédit Agricole Private Equity Sofinnova Partners
22 B
4 A
Stentys, F 23M€ IPO
Euronext listing, stent specialist
Svelte Medical Systems
6 Balloon expandable stent
Symetis, CH Endeavour vision, NGBI Ventures, Wellington Partners
25 B
36 C
Transcatheter aortic valve replacement (TAVR) system Former J6J
TriVascular 30 B Stent graft developer for treating abdominal and thoracic
Veryan Seroba Kernal, Oxford Capital, NESTA
5.4 Biomimics 3D stent
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M&A : over 5B$ at 6 X revenues Examples of M&A activity growing since 2009
Acquired Acquirer Amount (M$ )
Comment
eV3 Covidien 2600 5.2× sales of $500 million, a 20% premium over market price. eV3 product line includes stents, catheters, and other endovascular and minimally invasive vascular devices to treat clogged veins and arteries. eV3’s devices complement—without overlapping—the products of VNUS Medical Technologies, which Covidien acquired in 2009. The purchase of eV3 also broadens Covidien’s product offerings and new product pipeline in the high-growth vascular market.
AGA Medical Holdings
St. Jude Medical
1100 6.5× 2009 revenues of $199 million, 41% premium over market value prior to announcement of the transaction. Products provide diversification into the structural heart defect treatment segment beyond SJM its maturing core product lines of cardiovascular implantables. The structural heart defect market is estimated to be a $2 billion market in the early stages of development. AGA Medical produces a comprehensive line of devices to treat structural heart defects and vascular abnormalities through minimally invasive transcatheter treatments. The company’s Amplatzer products have strong brand name recognition for being safe and effective as well as easy to use. AGA was the only significant medical device company to complete an IPO in 2009, and it has grown at a compound rate of 19% since 2005.
Flowcardia C.R. Bard 1100 $80 million cash from PE Glide Healthcare Partners. Flowcardia has innovative technologies to facilitate the crossing of totally occulated coronary and peripheral arteries. Chronic total occulusions (CTOs) are one of the last clinical challenges in interventional therapy. The absence of safe and effective devices to treat CTOs and the high incidence of restenosis when metal stents are used has been one of the major reasons CTO patients undergo bypass surgery. Flowcardia’s Crosser recanalization catheter, steerable support catheters, and guidewires compose a family of tools that enables physicians to quickly cross CTOs, allowing for subsequent balloon angioplasty, atherectomy, and stent placement.
ATS Medical Medtronic 370 4.9× 2009 sales of $76 million. ATS loss of $6.3 million in 2009. ATS’ product lines overlap two segments where Medtronic wants to expand—structural heart valve disease and cardiac arrhythmias. Medtronic has catheter ablation technologies using radio frequency and cryoablation energy. ATS brings surgical cryoablation procedures for the treatment of cardiac arrhythmias. With ATS under its wing, Medtronic now has grown its cardiovascular operations, which generated sales of about $2.5 billion in 2009
Invatec SpA Medtronic na Invatec manufactures stents, angioplasty balloons, and accessory products. Medtronic expects the acquisition to accelerate the growth of its cardiovascular business by adding new coronary and peripheral vascular products to its product offerings. It is estimated that more than 20 million people in the United States and Western Europe have peripheral vascular disease; the market is $2 billion and growing 10% annually.
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Regional start-ups seeking finance in 2010
Name Description Opportunity Information
ACT advanced cardiac therapeutics
Heat mapping microwave radiometry for atrial ablation AF. Clinical Pre CE. HQ Dresden.
10M€ C @ 15M€
AF market 1B$ +25%
www.actmed.com
Acutus medical Cardiac electrical activation visualization
n/a www.acutusmedical.com
Bmeye Non invasive beat to beat
CV monitoring of BP and cardiac output. Competes with FMS, Uscom (echo), Chettah (impedance) Early-stageHQ Amsterdam
1.5 B€ cardio, anaesthesia, ER markets
www.bmeye.com
Miracor Pressure controlled coronary sinus occlusion increases the venous circulation of the hearth, redistributing flow and washing metabolites post stenting. Vienna, Austria
B @ 10 M€ www.miracormedical.com
Persona medical systems
12-lead ECG with interpretation for MI patients in rehabilitation centers. Berlin.
2M€ @ 1.5M€
23 M CHD patients
www.personamedsystems.com
Qvanteq Stent technologies to address and overcome the adverse effects of today's available coronary artery stents.
Arik Zucker
Sabir medical BP monitor based on pulseoxymetry and machine learning.OR, OB/CYN, ambulatory, home segments. Competes against Pulsoximeters Masimo, Nellcore, Nonin. HQ Barcelona. Investors Ysuis Capital.
1M€ @ x5M€
BP market 445M$
www.sabirmedical.com
VueKlar Cardiovascular
Cardiovascular implants and interventional devices that are compatible with high quality MRI. The technology benefits the following devices: sStents , valves, septal occluders, vena cava filters
n/a www.vueklar.com
Xeltis Tissue engineered cardiovascular implants such as heart valves, arteries and patches.
Tom Sulzer
Funded
H2AD Twittoo Medical gateway for home care monitoring of patients, particularly for
500K€ http://www.twitoo.org seeking
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Name Description Opportunity Information
cardiac diseases or after hospital discharge. Based on Bluetooth and GSM communications and hosted medical record. Engineering only in Porrentruy.
VC round in 2011
Industry structure : top 20 make 32% of industry
FY 2009 Ranking
Company 2009 Cardiology sales (US$ million)
Notes
1 Medtronic 7451.00 2 Boston Scientific 6430.00 3 St Jude Medical 4350.51 Cardiac rhythm management, Cardiovascular
and Atrial fibrillation segment sales 4 Johnson & Johnson 2679.00 Cordis division sales 5 Terumo 1453.39 6 Edwards Lifesciences 1321.40 7 Sorin Group 940.40 8 CR Bard 681.50 Vascular segment sales 9 Greatbatch 305.35 10 Thoratec 279.97 11 Merit Medical Systems 257.46 12 AGA Medical Holdings 198.71 13 Abiomed 84.77 14 AngioDynamics 83.46 15 ATS Medical 75.71 16 CONMED 70.98 17 Teleflex Medical 70.80 18 Vascular Solutions 66.73 19 Cardiovascular Systems 56.46 20 AtriCure 54.53
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Orthopaedic
Opportunities : 43 B$ growing at 7-17% Growth from 1999–2004 reflected solid gains in procedures, combined with price increases that averaged 5 to 6%. New technologies such as materials, biologic products for orthopedic surgery, and new products for spine surgery contributed to industry growth during this period. Orthopedics stocks performed well in the late 1990s and early 2000s but have struggled somewhat in recent years.
Sector Revenue (B$ )
Revenue (% WW)
Growth (2009)
Opportunities
Spine 2.8
(740 M$ minimally invasive)
19% Attract investment despite crowding (200 companies offering some form of spine treatment)
Hips and knees 6 (2009)
28%
Extremities, small bones and joints
15%
Trauma 13%
Sport 8%
Biologics, bone graft 4.2 (2007) (2.2 M procedures)
7% 17% Orthobiology is one of the new advances bringing the inclusion of biology and biochemistry in the development of bone and soft tissue replacement materials for skeletal and tissue healing.Stem-cell therapies are forecast to be the fastest-growing category, with a CAGR of 53.9% over the next five years.
Powered instruments 3%
Casting 3%
Total 43, 26 (2007), 3(EU 2007)
7%
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Epidemiology • 50% of all chronic conditions in people over the age of 50 in developed countries, • The aging population is vulnerable to deteriorating bones and joints. • 20% of all visits to outpatient clinics are for musculo-skeletal conditions, • Orthopedic physician practice statistics45 • Elective surgeries (76%) • Joint replacements (55%) (364,000 hip and knee arthroplasty procedures in Germany in 2008) • Sports medicine (27%) • Spine (19%)
VC investments : 280M$ • VC deals in orthopedics were $280 million (2008, -42% compared to 2007). In 2009, the third
largest VC funding was for Small Bone Innovations Inc. It raised more than the $100 million each raised by Twitter and Facebook during the same period. Spine fundings included Apatech, Vertiflex, Paradigm and Spineology
• IPOs $51 million (2008, -70% 2007). Examples : NuVasive, less-invasive system for spine surgery, and Kyphon, treatment vertebral compression fractures.
Recent financing rounds in 2008-2009 (257M$)
Company VCs Amount (M$ )
Comment
Axiomed Spine 14
Amedica Corp. 30 ceramic implant technology
Apatech 3i Group; HealthCor Partners
35 spine
Baxano Kaiser Permanente , Affinity
30 C Surgical technology for restoring spinal function
BioCeramic Therapeutics
2 tissue regeneration products developer
Implanet, F Auriga Capital,
Edmond de Rothschild Investment Partners , Wellington
Partners
17 Orthopaedic implants for various surgical markets.
OrthAlign 5 A2 KneeAlign system for total joint replacement
Ortho Kinematics
3 spine motion analysis technology
Orthox, UK Public grant 0.6 Silk based orthobiologic biomaterial
Relievant Medsystems
20 Intracept minimally-invasive treatment for chronic low back pain
Resoimplant, D Bavarian 3 New fixation system for shoulder and ankle surgery
5 Source : Viscogliosi Bros December 2008.
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Investment, High Tech Grunderfonds, S-refit
Small Bone Innovations (SBi)
Olympus 108
12
STAR total ankle replacement system. This is the largest single financing in orthpaedics.
Spinal Modulation
27 C spinal cord stimulation system
Vertos Medical 15 D minimally-invasive lumbar decompression (mild) technology
M&A : 70% of volume, over 6B$ 42 mergers and acquisitions with joint reconstruction, spine, and orthobiologics companies accounted for 70% of the deal volume (2009).
Acquired Acquirer Amount (M$ )
Comment
Nexa Orthopedics, BioProfile, DVO Extremity Solutions, and Axya Medical
Tornier products in the extremities (small bone and joint) market.
Osteotech Medtronic 123 Processor of aseptic bone allograft tissue, and Medtronic is hoping that the company’s successful product line positions its biologics business for significant growth over the next few years. 1.3× sales of $96 million, and a 63.5% premium over the market value prior to the announcement. Osteotech produces bone graft, bone matrix, and biocomposite products used in muscloskeletal surgery. Medtronic has been positioning itself at the intersection of medical devices and biologics, where a biologic product is delivered by a medical device. Medtronic‘s focus has been on spine and orthopedic trauma, and Osteotech’s products represent an expansion into joint reconstruction, foot and ankle surgeries, and sports medicine.
Life Cell Kinetic Concepts
1700 leading provider of biological products for soft tissue repair (2008)
Kyphon IPO, Medtronic 3900 Treatment of vertebral compression fractures
Apatech Baxter International
330 Bone graft materials . Price based on achievement of milestones (5.5× sales of $60 million) Apatech’s biologically active trophic glass product ACTIFUSE has the ability to grow bone. Baxter has a proven surgical biologics technology platform and sales exceeding $500 million for surgical biologic products for orthopaedic, cardiovascular, and many other segments. Baxter can increase it biologics product sales with Apatech’s proprietary bioactive silica products, and do so in orthopaedics and many other medical specialties.
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Regional start-ups seeking finance in 2010
Name Description Opportunity Information Crisalix 3D simulation based on physical properties of
the patient for plastic, aesthetic and reconstructive surgery
Jaime Garcia Giraldez
Delta Robotics
3 dimensional plotter for manufacturing biocompatible bone implants
Marc Thurner
Facet Anatomic facet reconstruction device designed to provide patients with lumbar spinal stenosis and facet degeneration a motion preservation alternative to fusion. Implatente in 30 min, allows L3-S1 treatment. Developing Investors De Novo, Spray ventures. HQ Wiesbaden.
20M€ @ 38 M€ 850 M$ lumbar stenosis market EU
www.facetsolutions.com
iStar medical
Ophthalmic implants n/a www.istarmed.com
NaviSwiss Intraoperative measurement for orthopaedics surgery. HQ CH
4M CHF 2014 e sales 22 MCHF 1.3 M hip replacements, 16% CAGR
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Industry structure : top ten = 62% Seven large companies account for more than 60% of the orthopedics industry which counts 70 publicly-traded companies. In total more than 1700 companies are involved in orthopedics. Small to medium-sized companies ($100 million to $1 billion in sales) include Alphatec Spine, ArthroCare, Exactech, Integra Orthopedics, NuVasive, Orthofix International, and Wright Medical. Most of these companies concentrate on market niches.
FY 2009 Ranking
Company 2009 Orthopaedic sales (US$ million)
Notes
1 Johnson & Johnson 5372.00 DuPuy division sales has market strength in hips, knees, and extremities, but also participates in virtually all areas of orthopedics
2 Stryker 4119.70 3 Zimmer 4095.40 4 Medtronic 3400.00 Medtronic Sofamor Danek focuses entirely on
the spine and remains the market leader in this area.
5 Synthes 3394.65 6 Biomet 2504.10 7 Smith & Nephew 2135.00 8 DJO 946.13 9 Orthofix International 545.64 10 Wright Medical 487.51 11 NuVasive 370.34 12 Symmetry Medical 365.94 13 Integra LifeSciences 262.17 14 Exactech 177.31 15 Alphatec Holdings 132.16 16 Greatbatch 113.90 17 Osteotech 96.68 18 Orthovita 92.85 19 Corin Group 63.51 20 Kensey Nash 29.79
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Imaging
Opportunities : 16B$ and 7% growth Medical imaging is one of the developments that changed clinical medicine during the last century. In the last two years, 40 companies in this field have received investment. Coupled with the advances in hardware, there have also been substantial developments in software applications, primarily related with Computed Tomography (CT) and Magnetic Resonance Imaging (MRI). Another area where software is playing a role is planning of therapies and surgeries. The European cardiology PACS Market earned revenues of US$73 million in 2005 and estimates this will reach US$200 million in 20126.
Sector Revenue7 (B$)
Growth (% CAGR)
X-ray 2.1 3%
Computed tomography
3.3 10.5 %
Ultrasound 1.8 5 %
Nuclear imaging 3.2 6 %
Radiation therapy
Magnetic resonance imaging
2.9 9 %
Imaging information systems
PACS 74 (EU cardiology 2005)
48 %
Total 16 6.8 %
6 Frost & Sullivan 7 Fredonia group estimates
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VC investment Recent financing rounds in 2008-2009
Company VCs Amount (M$ )
Comment
U-system ID softcapital, Sycamore
10 Automated breast ultrasound system (ABUS) combined with mamography
Crospon 3 EndoFlio gastro-diagnostic imaging device. Received 510k clearance.
Visiopharm NorthCap Partners
Provider of advanced software for quantitative microscopy for life sciences, analysis software, hardware integration, automation, and quality inspection.
Surgix Maayan ventures
Israeli-based company is developing a visual based
system for image guided surgery primarily focused
on orthopaedic trauma, was awarded the Ernest and Young
Entrepreneur of the Year in Israel in 2006 EOS (former Biospace Med)
Wellington, Auriga
15 C Founded by Nobel Prize winner Georges Charpak to provide researchers in biology with innovative imaging tools based on his discoveries in high-energy physics and particle detection. Still seeking funding see below.
M&A Acquired Acquirer Amount
(M$ ) Comment
Orbatech Medical Solutions
GE Healthcare 14 produces the cadmium zinc telluride (CZT) detectors used in GE’s Alcyone nuclear cardiology technology. GE’s system produces views of cardiac anatomy and functionality quickly and with high clarity, with exposure time as short as three minutes.
Sentinelle Medical
Hologic 85 leading provider of innovative magnetic resonance imaging (MRI) breast cancer detection and intervention products. (5.7× sales of $15 million, plus contingency payments)
SenoRx C.R. Bard 200 Producer of x-ray– and MRI-guided breast biopsy systems. (3.6× 2009 sales of $55.6 million). Expands Bard’s diagnostic imaging business beyond ultrasound-guided procedures to include breast biopsy devices that are also designed to operate also in x-ray and MRI imaging modalities.
Regional start-ups seeking finance in 2010
Name Description Opportunity Information
Aïmago Development of medical diagnostic imaging instruments to visualize microcirculation, the capillary blood flow. Real-time, non-invasive and contact less. Very large application potential incl. reconstructive surgery, intensive care, dermatology, neurosurgery, ophthalmology and metabolic imaging.
Friedrich Michael
Raised capital
CAScination Navigation system for surgery on soft tissues. Similarly to the navigation system in a car, the surgical navigation system displays a map (of the
Matthias Peterhans
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Name Description Opportunity Information
patient) and guides the user to a desired target location (treatment area). This guidance information is displayed in a 3D augmented reality scene and allows for highly precise treatment of tumors. Navigated surgery has the potential to enable surgery on patients which cannot be treated with conventional surgical techniques.
EOS Imaging
With EOS, radiologists and orthopedists can now for the first time, have a full view of their patient’s skeleton: life-size, naturally weight-bearing, in 3D, from all angles. Company in Paris. Investors Wellington, Auriga,…
12M€ round C 2B$ orthopaedics market
http://www.eos-imaging.com
Mindmaze Neuro-imaging solution enables objective measurement of performance through brain activity patterns recorded while patients interact in different virtual environments.
Tej Tadi
PearlTec Positioning device for Computed Tomography and Magnetic Resonance Imaging that allows a higher patient throughput, significantly increased image quality and improved patient comfort.
Fischer Patrizia
1.1MCGF ZKB, Berner Partners
Supersonic Ultrafast US imaging for breast lesion screening. Shear wave ultrasound allows tissue stiffness assessment. Competes with GE, Phillips, Siemens. Developing. Investors Auriga, NBGI, Bioam, Edmond Rotschild, Wellington. HQ Aix-en-ProVence
30M€ @ 53M€ Market size 5.3B$, CAGR 5%. 2012e sales 27 M€ 2010 10 M€
www.supersonicimagine.fr
VirtaMed Surgical simulators for minimally invasive endoscopic surgery with unprecedented realism, using proprietary technology in combination with current computing hardware.
Start Angels Network Zürich Kantonalbank Generated 1.3 MCHF
Tuchschmid
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Industry structure : top 3 = 75% General Electric (GE), Siemens, and Philips dominate the medical imaging market, with approximately 75% share of the worldwide market. GE remains the undisputed leader of medical imaging.
FY 2009 Ranking
Company 2009 Imaging sales (US$ million)
Notes
1 GE Healthcare 10682.00 Imaging equipment, imaging agents and service 2 Siemens Healthcare 9974.39 3 Philips 4158.79 4 Olympus Medical 3752.66 Medical Systems & Life Sciences segments 5 Fujifilm 2823.73 Medical Systems & Life Sciences segments 6 Carestream Health 2318.68 7 AGFA Healthcare 1642.87 8 Hitachi Medical 1169.92 No breakdown available. Estimated as 12.59% of
total electronic systems and equipment segment (as for FY2008)
9 Covidien 1147.00 10 Konica Minolta 1116.55 Medical & Graphic segments 11 Carl Zeiss 984.61 Medical Systems segment 12 Hologic Inc 619.66 13 Shimadzu 540.23 14 Guerbet 467.87 15 Aloka 346.36 16 Varian Medical Systems 331.00 X-ray products segment 17 Analogic Corp 325.19 18 SonoSite 227.39 19 Sirona Dental Systems 226.73 Previously Schick Technologies 20 Mindray Medical 162.47
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Diagnostics
Opportunities : 50B$, 6% growth Diagnostics include biotechnological-based testing as well as medical devices. Star performers of the IVD industry segment are clinical chemistry and immuno-assay systems.
• Clinical chemistry products benefit from the sales of personal blood glucose monitoring systems and testing-strips,
• Immunoassay will be driven by drug and infectious disease testing. With the rising volumes of blood glucose monitoring among diabetic patients, endocrine condition testing is one of the most popular IVD application. The total diabetes burden is forecast to be 11.5% (25.4 million) in 2011, 13.5% (32.6 million) in 2021, and 14.5% (37.7 million) in 2031.
• Hemostasis tests for D-dimer and other cardiac parameters offer bright opportunities among IVD blood testing systems. The reason for this is their ability to quantify heart attack and embolism risk prior to a cardiac emergency.
• Overall demand for IVD testing is increasing because of an increasing interest in personalized medicine. Biomarkers helps in predicting the outcome of therapies for an individual patient.
Sector Revenue (B$)
EU 27 Revenue (B€)
Growth (%)
in vitro diagnostics (IVD)
50 (2009) 38 (2007)
10.2 (+3%) 6.7%
molecular diagnostics
2.6 (2005) 14%
Cancer diagnostics 15 (2009) 68%
point of care diagnostic (POC)
12 (2005) 7.8%
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VC investment around 250M$ Recent financing rounds in 2008-2009 (208M$). In 1H 2010, 18 companies in the MDx space attracted at least $235.4 million in investments8.
Company VCs Amount (M$ )
Comment
AdvanDx 8 C molecular diagnostic tests for bacterial infections
CancerGuide Diagnostics
Hatteras Ventures, Cardioinsights
10 A Genomic based cancer tests for personalized medicine.
Curetis, D 27 A Dosepro molecular diagnostic
Exosome Diagnostics
NGN capital, Forbion capital
20 TB test
Foundation medicine
Third Rock Ventures
25 A Clinical laboratory test that analyze genomic in individual patients cancer top personalize treatment
Freedom Meditech
A Noninvasive ophthalmic devices for monitoring glucose levels in diabetics
Lab901 4 ScreenTape laboratory analysis automated diagnostic instruments
Microvisk technologies, UK
3 SmartStrip POC blood coagulation monitor to launch in 2011
Molecular Detection Inc (MDI)
3 C Rapid tests for infectious diseases
mtm laboratories, D
45 C Cervical cancer diagnostics specialist
Myconostica D diagnostic
PharmaDiagnostics 3 B label-free screening technology
PrimaDiag Angels 0.5 robotic platform designed to automate biological processes for lab
Rheonix Cayuga Venture,
12 A Molecular diagnostic, CARD chemistry and reagent system
Saladax biomedical
Excel Venture, Golden Seeds, Ben Franklin technology partners,
8 C Mycare blood test measuring drug levels to treat cancer and nervous disorders
T2 Biosytems Physic Ventures 15 C Next generation diagnostic using nanotechnology, miniaturized MRI
Tethys Bioscience 25 Diabetes risk test, PreDx
Biocartis 41 B
Veracyte 28 B molecular cytology tests
Epigenomics 44
Cyntellect 3
8 GenomeWeb Daily News
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M&A Acquired Acquirer Amount
(M$ ) Comment
Clarient GE Healthcare 580 7.7× estimated sales of $75 million, and a 33.7% premium over the market value. Clarient is a leading company in the rapidly growing area of molecular cancer diagnostics, with systems that provide doctors with precise information about a patient’s cancer and help them prescribe appropriate treatment. GE Healthcare moves towards its goal of integrating imaging and clinical molecular diagnostics to both diagnose and monitor cancer and other diseases. The combination of imaging and molecular testing is the Holy Grail in the diagnostics spaces.
Standard Diagnostics
Alere 224 South Korea–based manufacturer of rapid diagnostic products. The acquisition increases offerings for hepatitis, infectious diseases, tumor markers, and urine and protein strips. Acquisition for a 75% interest 5.6× sales of $40 million.
Epocal Alere 257 Canadian producer of blood testing equipment with wireless transmission capability, complements Alere’s Triage technology for wirelessly relaying point-of-care (POC) bedside test results to patient files.
Genzyme Corp. Laboratory Corp. of America
925 2.5× 2009 sales of $371 million. provider of a broad range of diagnostic products
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Regional start-ups seeking finance in 2010
Name Description Opportunity Information
Abionic Fast and low-cost screening tests for portable medical diagnostic use. As there are currently over 100 million people in Europe suffering from allergies, Abionic will firstly develop a novel personalized allergy diagnostic test that will allow patients to take the optimal medication.
Nicolas Durand
www.abionic.com
Ayanda biosystems
Blood-based test for gynaecological (ovarian and breast). BARD1 protein biomarker has demonstrated specificity, can be used with standard assays, such as ELISA. Pre-clinical. Lausanne
500K – 3M CHF www.ayanda-biosys.com
Mendor Web based management software for self monitoring blood glucose (SMBG) and self care for patients with diabetes. Software implements IDF pair measurement. Glucose monitor and test strips for T1 and T2 diabetics. Competition Roche, Lifescan J&J, Abbott, Bayer. HQ Helsinki
6 M€
8 B€ SMBG market
10% CAGR
www.mendor.com
Motilis Medica
Portable mobility recorder for whole GI tract, accurate and detailed transit monitoring. Competes with Pillcam, bravo given imaging, smartpill. Lausanne
3MCHF
Functional troubles - such as constipation, gastroparesis, dyspepsia and IBS - affect up to 20% of the population , results in 4% of consulting, 350 M CHF market
www.motilis.com
Sense
Sport technologies company specialising in biomedical monitoring tools for professional athletes, teams, as well as clinics and rehabilitation centres.
Alexandros Giannakis CSEM, negotiating
Sensimed Personalized 24 hour intraocular pressure monitor for glaucoma management. Investors Blue Ocean Ventures, Wellington, Vinci, Agate. Pre-sales. HQ Lausanne.
1M€ @ 13M€, M&A (17M€ raised)
www.sensimed.com
Industry structure : top 3 = 44%, top 10=80% The global IVD market is quite consolidated with the top ten market players owning about 80 percent market share.
FY 2009 Ranking
Company 2009 sales (US$ million)
Notes
1 Roche 20% market share
2 Siemens 12% market share
3 Abbott 12% market share
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Surgical, Ophtalmo, Neuro, Urology
Opportunities : 16B$ We are discussing here various other subsectors :
• Surgical • Ophtalmology, sector receiving a noted amount of venture capital interest (Sensimed) • Neurology • Urology
Growth rates are indicated below.
Sector Revenue (M$ 2003 )
Growth (2003)
Surgical 7.7 9%
Ophthalmology 5.7 5%
Neurology 2.2 19%
Urology 0.8 12%
VC investment : >200M$ Recent financing rounds in 2008-2009 (220M$)
Company VCs Amount (M$ )
Comment
Activaero, D BioMedPartners 16 A inhaled drug delivery technologies
Athena Feminine Technologies
vSpring 2 incontinence tech firm, female incontinence treatment
BeneChill HealthCap 13.5 C non-invasive cooling devices for treating hypothermia
Blue Belt Pittsburgh Life Sciences Greenhouse
2 A Smart surgical instruments
DFine Orbimed, Split 36 E RF kyphoplasty system
Electrical Brain Syncronization, D
4 B Treatment of neurological deficits and stroke and brain trauma.
Eyetechcare, F SHAM 9.4 Ultrasound technology for treating glaucoma
Inspire Medical Systems
Synergy Life Science Partners, Medtronic
17 Sleep apnoea treatment
Lumenis 15 laser, light-based and radiofrequency devices for surgical, aesthetic and ophthalmic applications
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MicroTransponder Angel + grant
7 B
2
Wireless neurostimulation technology. SAINT device for treating chronic pain.
Neuronetics New Leaf Venture Partners
30 D anti-depression treatment using magnetic pulses
NiTi Surgical Solutions
18 F CE-marked and FDA-cleared ColonRing wound closure device
Ocutec Discovery investment fund
0.7 Polyethylene glycol PEG for use in contact lenses
Quanta Fluid Solutions
NBGI Ventures, Seroba Kernal and Wellington Partners
12 home haemodialysis system
TransMedics Foundation Capital, Kleiner Perkins Caufield & Byers, Flagship ventures
36 Organ care systems product for solid organ transplantation. Financing to support commercialization.
Novagali Pharma 58 all rounds
innovative products for all segments of the eye (up to 2008)
Sensimed 4 A
20 ? B
Glaucoma diagnostic
M&A Acquired Acquirer Amount
(M$ ) Comment
Micrus Endovascular
Johnson and Johnson
480 Pproducer of catheters and other minimally invasive devices for treating stroke-related brain problems such as aneurysms and arterial thickening. (5.2× sales of $91 million and 36× EBITDA of $13.3 million)
Somanetics Covidien 250 Leader in cerebral and somatic oximetry, (5× 2009 sales of $50 million, and a 32% premium over market value ). Somanetics’ patient monitoring technology continuously measures blood oxygen levels in the brain and body of patients who are at risk for restricted blood flow so that clinicians can detect and correct various complications. The company’s Invos system is the only commercially available cerebral-somatic oximeter shown to improve patient outcomes.
Covidien PH Invest continuous positive airway pressure (CPAP) sleep therapy business
BioControl Medical
Medtronic 350 to 550 Proprietary implantable nerve stimulation devices. If BioControl fails to complete the clinical trials of its devices or obtain FDA approval for them, Medtronic can acquire the company for $350 million.
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Regional start-ups seeking finance in 2010
Surg
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Op
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Neu
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Uro
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Oth
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Name Description Opportunity Information
X X Stereotools Stereotactic surgery guides compatible with MRI. Ultrasound imaging adapter.
Seed. Lausanne
500K CHF @
300K procedures, 900 M CHF market
2M CHF sales 2013e
www.stereotools.com
X Crisalix 3D simulation based on physical properties of the patient for plastic, aesthetic and reconstructive surgery
Jaime Garcia Giraldez
X Aleva Neurotherapeutics
Micro DBS technologies including probes. Lausanne
450 M€ market www.aleva-neuro.com
X EBS Non invasive brain stimulation. Early stage. Berlin
1.5 M€ @ na
15 M patients aphasia, visual deffects
www.ebstech.de
X NeMoDevices Diagnosis and treatment of patients with stroke and brain injuries . Technologies are based on near infrared extinction and provide two single-use products: a minimal invasive probe (NeMo Probe) and a non-invasive patch (NeMo Patch), which allows monitoring brain blood flow and oxygenation in the Intensive Care Unit.
Emanuela Keller
X Nextstim Navigated brain Stimulation devices for clinical use (presurgical mapping) and scientific research. FDA approved. HQ Helsinki, Finland
n/a www.nexstim.com
X Sapiens DBS providing directional stimulation through cranial implanted MR safe (image guided therapies) 64 electrode probe. Philips spin-off. Competition Medtronics, St Jude, Boston Sc., J&j, Neuropace. Seed. HQ Eindhoven. 3 VCs
12M€ @ na
Neurostimulation market 1500 M€ 16% CAGR; DBS 400M€
www.sapeinssbs.com
X StrokeLab Treatment of brain aneurysms.
Luca Augsburger and Rafik Ouared
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Name Description Opportunity Information
X Vigisense Mobility tracking of Alzheimer elderly patients for prevention of accident, better monitoring of conditions, assistance to care. Based on radio and hosted medical records for care centers.
500K€
Serge Grisard
X 3Brain In-vitro high-resolution electrophysiology. Enables dense electrical activity monitoring of electrogenic cell cultures and provides researchers access to unique spatio-temporal details of network information. Current applications include both neuroscience and high-throughput drug discovery.
Kilian Imfeld www.3brain.com
X Cequr Diabetes drug delivery. Disposable patch for 3days physiological insulin delivery. Development. Investors BMC ventures, Endeavour, Schroeder, Orion, HQ Montreux
9M diabetes T2 patients. 2 B$ insulin IDD device market
www.cequr.net
X InSphero Biological microtissues to test drugs more efficiently. These microtissues resemble human native tissue in terms of structure and function much better than conventional tests. Therefore, they give pharmaceutical developers more insight into the efficacy of new drugs or into potential negative side effects.
Jan Lichtenberg
Business Angel funded
X MedDrop Technology
Local pain therapy by transporting active substances directly through the skin using a special application system that empowered by oxygen.
Hahn Friedrich
X Nanopowers Artificial muscle technology for urinary incontinence. for male (post rpatatectomy) and female.
100 M CHF UI artificial sphincters. 600 M CHF total market.
www.nanopowers.com
X Nebion AG Online analysis system for researchers facilitateS biological discovery and diagnostics by high quality data curation and the development of innovative analysis systems and algorithms.
n/a
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Name Description Opportunity Information
X Powersens Electronic shoe-insoles for diabetic people. These insoles are worn daily and measure foot plantar pressure continuously. They enable to prevent apparition of diabetic foot ulcers, which are responsible for more than half of lower limb amputation in the world ! These innovative and practical insoles will improve the quality of life of many, and reduce significant health care costs.
Marc Rocklinger
X Primequal Injector that fills the market gap between standard disposable syringes and multi use injection pens.
Weill David
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Healthcare information systems While healthcare has been slow in changes and in particular IT adoption, there are driving mega-trends :
• increase the longevity and quality of life of the elderly population, requiring continuum of care • expectation for personalized, patient focused, care delivery • budget reductions and pressures from insurers and regulators, requiring productivity enhancing
solutions. • advances in information technology providing improvement on patient care, emerging
electronic health records,
Technologies We anticipate growth of technology-based solutions in many areas.
• Electronic health records: enabling the communication of patient data between different healthcare professionals (GPs, specialists etc.); healthcare information systems software supporting continuum of care operations or managed care programs.
• Consumer health informatics: use of electronic resources on medical topics by healthy individuals or patients; Patient self-management : remote consultations, testing, medication
• mHealth or m-Health: includes the use of mobile devices in collecting aggregate and patient level health data, providing healthcare information to practitioners, researchers, and patients, real-time monitoring of patient vitals, and direct provision of care (via mobile telemedicine) ;Information devices such as mobile tablets or home monitoring gateway for capturing patient information
• RFID sensors for management of mobile assets. • Management of chronic diseases, mental health • On the rise
o Advanced disease management support o Patient Decision Aids — Healthcare Provider o Patient Throughput and Logistics Management (PTL) o Personal Health Management Tools — Healthcare Providers o Perioperative Charting and Anesthesia Documentation Within the CPR o Integrated Clinical/Financial BI Systems o Personal Health Record
• Sliding Into the Trough o Video Visits o Patient Self-Service Portals (Scheduling/Billing) o Home Health Monitoring o Emergency Department Information Systems as Part of a CPR System o Next-Generation Enterprise Patient Financial Systems (U.S.) o CPR-Integrated Critical Care IS o Patient Self-Service Kiosks o Remote ICU o Rounding Robots o Patient Portals (Clinical)
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• Climbing the Slope o Generation 3 Computer-Based Patient Records o E-Visits (Healthcare Provider) o Ambulatory Electronic Medical Records o E-Prescribing (Healthcare Provider) o Wireless Healthcare Asset Management o ERP (SOA) o Remote Hosting o Computer-Based Physician Order Entry o Disaster Recovery and Business Continuity
Opportunities: • EU VC investments in medical software and IT were 18 M€ / 11 deals in 2009 and 9 M€ / 6 deals
in Q1-3 2010 (Thomson) • Governments programs for health information exchange (USA 20B$ healthcare IT + 140M$
investment in NHIN, France : telemedicine, UK Telecare + connecting for health 10B€ until 2010, F: EHR in 2008, D: E-health card since 2007)
• Healthcare vendor consolidation. o HIS vendors Cerner, iSoft, Cerner, Eclipsys, McKesson, Siemens o PHR vendors : BlueCross, Microsoft HealthVault, Google Health, Dossia, Tolven. o Mobile health vendors : BodyMedia, CardioNet, eCardio, Epocrates, GreatCall
(Jitterbug), and Masimo
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Transaction history Here are recent transactions in wireless, m-health 2009-2010 Name Description Amount Information
InTouch Technologies
Remote presence telemedicine solutions
$ 10.0 Bringea, Galen Partners, InvestCare Partners, Twenty One East Victoria
Imperative Health (MiLife)
Online fitness coaching system $ 4.0 New Venture Partners, Unilever Ventures
MicroChips Monitor and control implanted drug dispensing chips
$ 16.5 InterWest Partners, Polaris Venture Partners, Flybridge Capital Partners, Novartis, Medtronic
Proteus Biomedical
Wireless, adhesive sensor technology
$ 25.0 Novartis, Medtronic, ON Semiconductor
Wireless Medcare
Bed sensors $ 0.5 Carilion Biomedical Institute, Optimum Sensor Holdings
WellAware Wireless remote monitoring systems
$ 7.5 Valhalla Partners, .406 Ventures
TelaDoc Primary care physicians network $ 9.0 HLM Venture Partners, Cardinal Partners, Trident Capital
GymFu Motion-detecting iPhone fitness apps
$ 0.2 Channel 4’s 4iP
Echo Therapeutics
Wireless blood glucose monitor $ 3.6 Cotswold Foundation
Myca Health EMR, admin system, communication tools
$ 5.0 BlueCross BlueShield Venture Partners, Sandbox Industries
CardioMEMS Implantable wireless sensors $ 22.1 Arcapita Ventures, Boston Millennium, Foundation Medical
BL Healthcare Bluetooth-based wireless medical device monitoring
$ 3.0 Undisclosed
BiancaMed Wireless monitoring devices $ 9.8 Seventure Partners, ePlanet, Enterprise Ireland, ResMed
eCardio Remote cardiac monitoring n/a Sequoia Capital
Zephyr Technology
Physiological and biomechanical monitoring
n/a Motorola Ventures
Autonomic Technologies
Implantable device to soothe severe headaches
$ 20.0 Kleiner Perkins, InterWest Partners, Polaris Venture Partners, Caueld & Byers, The Cleveland Clinic
Monica Healthcare
Expectant mothers and babies monitoring
$ 1.6 PUK Ventures, Catapult Venture Managers, University of Nottingham
Phreesia Automatic patient check-in device
$ 11.6 BlueCross BlueShield Venture Partners, Polaris Venture Partners, HLM Venture Partners, Long River Ventures
MiLife Online fitness coaching system n/a New Venture Partners, Unilever Ventures
Experts Example :
• Jean-Claude Mouly, A3, former director Unisys healthcare
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List of start-ups The list includes a sampling of Swiss, EU and US start-ups.
Name Description Opportunity Information
Implanet Beep n Track RFID tracking of equipment and orthopedic implants. Implant division to be split from implants . Bordeaux, France
Round D 25 M€ @ 33M€ 5 M€ SW sales , 15M€ implants 2012e
www.implanet-com
Monitor it sa Home monitoring solutions for CHF patients www.monitor-it.lu
H2AD Paramedical products, 24 hours medical tele-assistance for old aged people and for the hospital discharged patients at home. Saint-Etienne et Health solutions participations in Porrentruy. Developing.
500K€-2M€ 3M€ sales 2013e Marché 400K gateways, > 500M$ EU +US,
www.h2ad.ne t www.twitoo.org
Dybuster AG Dyslexia management and education software, that trains correct writing and spelling skills
n/a www.dybuster.com
Nhumi Technologies GmbH
Nhumi Technologies builds software components and solutions for business partners, pharmas and care delivery organizations to organize, search, summarize and visualize biomedical or healthcare data using a virtual 3D model of the human anatomy.
www.nhumi.com
Avalis Healthcare Systems
Large scale remote management of chronic diseases by providing mobile (telemedicine and selfcare) disease technology to improve and transform the delivery of healthcare. CH
BAS investment, still looking for investors
Cinterion
Telehealth, Telemedicine, Remote patient monitoring, Mobile Fitness Monitoring.. Spun off from Siemens in 2008 after a LBO. Market share of 33% for GSM based M2M wireless modules, well established company USA
Benchmark information
http://www.cinterion.com/
E Medicis Web-mobile platform to help patients and healthcare professionals improve the adherence to treatments. Plan a MVNO, complete a portfolio of pathology specific compliance systems integrating sensors. US
240K€ in 2008 http://www.e-medicus.com/
MedApps
Collects and transmits data from patients’ health monitors in order for medical professionals, care management companies and others to monitor, analyze and respond as needed. USA
5M$ over 5M$ raised; 125 million people in the U.S. targeted
http://www.medapps.com/
Mobidarm
Mobile access to patient records from existing EHR systems e.g. lab results, medication, diagnosis. Workflow and billing support for home care Self-care support for e.g. diabetes patients Initial focus on Symbian OS, expansion to other platforms (Android,iPhone) . Open web service standards (SOAP and XML payload). Security features, user certificates on SIM cards or in other secure storage elements, mobile VPN, WS Security, XML Digital Signatures, and SSH. Helsinki Finland
R&D grant should cover trials in first half of 2010
http://www.mobidarm.com/
Patients Know Best
Patient-controlled medical records, integration into mobile phones of patients and clinicians. 2009/11 – BusinessWeek cover story as one of the world’s 25 most intriguing companies. Integrated with the NHS secure network .Mobiel features : health diary integration with patients’ smartphones, integrated messaging with patients’ and clinicians’ mobile phones, online consultation software subscriptions to US physicians. UK
1 M£ over 200K£
http://www.patientsknowbest.com
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Sources
Events Date Event Information 29 June 2010 EVCA Private Equity Earlybird Ventures, 8 September 2010 CTI Invest venture day GetYourGuide, Motilis, Peraltec, Anergis, Cultwork 29 September 2010 Medtech summit Meeting 20 medtech start-ups 14 october 2010 Innovation Xchange Apprupt, multibo, clar2pay, plista, canatu, metalysis, avantium,
tobii, Getjar, Stylight, Layar, Innotech, Keybonys, Enecsis, Alertme
27 October 2010 CTI CEO day Hirschfactor, Creathor, Naviswiss, stagend, Ni3, Bmob, Visiosafge
1 November 2010 HBS Private Equity and venture capital Meeting US VCs 17 November 2010 A3 Angels medtech Antlia, Stereotools, Ayanda 18 November 2010 EBAN Winter university Meeting SBA, start-ups 29 November 2010 Mobile Monday Switzerland
hospitality HouseTrip, MadeinLocal, iTaste, routerank, Abonobo, Arxit, Food Arena, L'avenue digital media
1 December 2010 Cleantech investing Meeting cleantech start-ups at EPFL