TRENDLINES GROUP
♦ It is intensely involved in its portfolio companies, supporting their technology development, business development, R&D, market and commercialisation strategy, funding strategy, finance and marketing communications.
♦ Trendlines is considered the best incubator in the medical technology space in Israel.
♦ B.Braun, a German healthcare provider with €5.4bn in sales, is a strategic investor with a 4.2% stake which it acquired for S$7.1 million during Trendlines IPO.
♦ Trendlines currently has a portfolio of 47 companies, of which 17 are in commercialisation stage.
♦ Its ultimate value lies in helping its portfolio companies to raise more funds and exit profitably eventually.
ONE OF THE MAIN REASON THAT CATCH MY ATTENTION ON TRENDLINES IS THAT, IT DON'T BURN LOTS OF CASH FOR A NEW TECHNOLOGY INCUBATOR FRANCHISE FROM OCS.
Trendlines Medical competed for and won the tender for a new technology incubator franchise from the OCS. The eight-year franchise allows Trendlines Medical to continue to leverage its investments in portfolio companies through funding from the OCS. Under the terms of the franchise, Trendlines Medical’s initial cash investment can be up to NIS 3.0 million (approximately US$767,000) in each new company, of which NIS 450,000 (approximately US$115,000) is from Trendlines Medical’s capital and the balance of NIS 2.55 million (approximately US$652,000) is in the form of an OCS grant to the portfolio company. In exchange for this investment, Trendlines Medical typically receives 50.0% interest in ordinary shares in the new portfolio company.
Example: LapSpace Under Trendlines
LapSpace founded in 2011, LapSpace has gone from pure idea to product prototype to clinical trials. The achievement of CE mark and FDA approval are, needless to say, vital milestones that increase its value. At some point, Trendlines would exit the start-up with a multi-fold return on its investment.
Trendlines invested in LapSpace only US$115,000 in cash and about US$450,000 in services rendered as an incubator over two years. And the Israeli government, which provided US$652,000 in grants, will get its money back. New investments are one of the catalysts for increases in the portfolio value of Trendlines -- and it has been rising every year since Trendlines started life in 2007.
Any successful deal crystalises the value of the start-up. Trendlines, for its part, provides the admin support, including accounting, and the physical office. Most importantly, Trendlines brings in investors. A successful deal crystalises the value of the start-up. Trendlines Medical typically receives 50.0% interest in ordinary shares in the new portfolio company.
Trendlines currently has a portfolio of 47 companies, of which 17 are in commercialisation stage. Three of Trendlines medtech companies have engaged investment bankers to find potential buyers. One of them is already in an advanced stage and could stage exit in the next 3-4 month.
My post on Trendlines were attributed mainly from Nextinsight source. All the acticles from Nextinsight had provided me with good understanding of Trendlines business. I am very thankful to Nextinsight website especially giving credit to CT Leong. I believe over the years Trendlines will be the next GEM and members of Nextinsight will be richly rewarded.
Trendlines since IPO in November 2015 had formed business partnership with 3 Global Giant Companies.
B. Braun a leading German healthcare supplier had invested $7.1 million as a cornerstone investor in Trendlines IPO. In March 2016 B. Braun sign affinitive agreement with Trendlines.
Major Multinational Medical Corparation (MMC HQ in Japan) signed a definitive collaboration framwork with Trendlines in February 2016.
April 2016 - Bayer of Germany with Trendlines establish $10 million Agtech Fund partnership name: "Bayer Trendlines Ag Innovation Fund."
Trendlines currently has a portfolio of 47 companies under its wings, of which 17 are in commercialisation stage which already generating revenue. These raises the odds of them being acquired by third parties. Three of the companies have signed engagement letters with investment banks for possible M&A.
Trendlines revenue from M&A tends to be lumpy but Trendlines is seaching for ways to generate stable streams of revenue through the use of royalties post-exit.
Trendlines with only B. Braun as cornerstone investor during IPO price at 33 cents. After 5 months Trendlines formed business partnership with 3 Global Giant Companies share price is only 23 cents. I believe Trendlines is a raw diamond yet to shine.
Shares doing a nice recovery on upcoming roadshow in Singapore + news of continued government support for new agri-tech start-ups incubated by Trendlines + impending sale of ET View.
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