What We Look for
in Healthcare:
Safeguard targets healthcare companies that represent lesser regulatory risk and have achieved or are near commercialization.
Sector Focus:
MedTech
HealthTech
Specialty Pharmaceuticals
Offer Significant Market Opportunity with:
Innovative Products or Services
Rapid Path to Commercialization
Strong Leadership and Management Teams
Mitigated Risk
Significant Margins
Differentiated Products
What We Look for
in Technology:
Safeguard targets technology companies that have transaction-enabling applications with a recurring revenue stream.
Sector Focus:
Digital Media
Enterprise 3.0
Financial Technology
Offer Significant Market Opportunity with:
Innovative Products or Services
Strong Management Teams
Recurring/Transactional Revenue Models
Market Leadership
Potential to Grow Organically and/or via Acquisition
Proprietary Technology
We are looking for tomorrow’s success stories.
Safeguard identifies value in entrepreneurs and visionaries who are pushing the boundaries of innovation.
Safeguard deploys capital into companies that are operating in large, growing markets; have barriers to entry by competitors, such as proprietary technology and intellectual property, or other competitive advantages; and have a compelling growth strategy. We are generally the primary shareholder in each partner company and have a strong network of syndication partners that we work with along the way.
Typical Partner Company Characteristics
- Capital Requirements:
Initial Capital: $5M-$15M
Follow-On Capital: $5M-$10M
Total Target Size to Not Exceed $25M
- Strategic Themes Addressed:
Maturity, Migration, Convergence, Compliance, Cost Containment
- Financing Options:
Expansion Financing, Corporate Spin-Out, Management Buyout, Recapitalization, Industry Consolidation, Early-Stage Financing
- Safeguard Ownership:
Generally Primary Shareholder
Safeguard seeks to achieve, in the aggregate, 2x to 5x cash-on-cash returns within three to five years of initial capital deployment.
Capital Requirements
Safeguard targets initial capital deployments between $5M and $15M, and follow-on financings between $5M and $10, with the total size to not exceed $25M over the lifecycle of our partnership. We are generally the primary shareholder in each partner company and have a strong network of syndication partners that we work with along the way.
Strategic Themes Addressed
We have found that the most promising growth-stage healthcare and technology companies have innovations that address one or more of these five key strategic themes within their marketplace:
- Maturity — Many existing technologies, solutions and therapies are reaching the end of their designed lives or patent protection; the population of the U.S. is aging; IT infrastructure is maturing and the sectors are consolidating; and many businesses based on once-novel technologies are now facing consolidation and other competitive pressures.
- Migration — Many technology platforms are migrating to newer technologies with changing cost structures; many medical treatments are moving toward earlier stage intervention or generics; there is a migration from generalized treatments to personalized medicine; many business models are migrating towards different revenue-generation models, integrating technologies and services; and traditional media such as newspapers and advertisements are migrating online.
- Convergence — Many healthcare and technology businesses are intersecting in fields like medical devices and diagnostics for targeted therapies. Within healthcare itself, devices, diagnostics and therapeutics are converging.
- Compliance — Regulatory compliance is driving buying behavior in healthcare and technology.
- Cost Containment — There is an ever increasing importance of cost containment as healthcare costs and IT infrastructure maintenance costs grow.
Financing Options
Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings.
Safeguard Ownership
We partner with companies who would like to operate autonomously but can benefit from the additional capital, managerial expertise and operational support resources that Safeguard brings to accelerate business growth. Safeguard prefers to acquire a majority or primary shareholder stake in our partner companies.
We are currently looking to build tomorrow’s success stories. If you are interested in becoming a Safeguard partner company, submit your business plan today.
