Investment Criteria
SCP Vitalife typically invests in companies in their early stages of development. These companies will have demonstrated a well-defined and thought-out business strategy, and will have put together a strong core management team and professional leadership.
Our key investment criteria include:
- Breakthrough technology / product platform that has the potential for significant commercial success.
- A well-crafted business model that presents an attractive, yet realistic, financial opportunity, detailing:
- the company’s revenue streams, expenses, margins and operational scalability;
- its future capital requirements;
- how the investment will create value for its investors.
- An addressable market with large sales, revenue and profit potential. Markets that will provide the company ample room for growth over several years.
- Solid intellectual property, which provides the company freedom to operate as well as creating significant barriers to entry.
- A clear clinical plan and regulatory strategy, detailing the company’s path from product development through to commercialization.
- A capable management team that is comprised of experienced executives who have domain expertise in the company's business area, a track record of prior success, and the drive and passion needed to overcome the inevitable obstacles on the road to success.
- High exit potential with identifiable exitors, backed by comparables from the company’s specific medical field and addressable markets.
Diligence Process
Our diligence process is rigorous, and includes a review of the technology, an analysis of the market and competitive landscape, an evaluation of the company’s intellectual property, a review of the clinical and regulatory plans, as well as an examination of current reimbursement levels and trends affecting reimbursement in the future.
In parallel, the fund prepares an estimate of the company’s future financing requirements and an analysis of the potential exit paths and valuations.
As part of our process, we will have conducted discussions and meetings with potential customers, physicians and strategic partners in order to evaluate the true commercial potential of the technology.
Once the potential portfolio company clears these hurdles and investment terms are agreed upon, the final step in the process is the approval of our investment committee.
SCP Vitalife Advantage for Entrepreneurs
We take pride in our history of providing hands-on assistance to our portfolio companies with strategy, clinical and regulatory planning, and business development.
A unique feature of SCP Vitalife is having investment professionals in both the U.S. and Israel. Given our team’s depth of experience, we have access to a large network of health care professionals, physicians, strategic partners, and investment banks. We leverage this network to the best advantage of our portfolio companies, assisting them on their path to success.