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

 safeguard at a glance

Safeguard At-A-Glance

Download Brochure

safeguard looks for market leaders in life sciences and 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.

Download our brochure for an at-a-glance view of what we typically look for in prospective 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.