Rick Van der Hoof

Arcadia, CA (USA)
Role(s):
Founder/Owner/Principal

No Name Yet

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Location: Arcadia
Industry: Healthcare
Year Founded: 2009
Number Employees: 1-10 people
Description: INVESTMENT CONSIDERATIONS Silent Partner Wanted: Who Are We? We are biotechnology-experienced professionals and doctorate-level laboratory experts with previous backgrounds in start-ups representing company that is seeking funding for approximately $3M to be used for company expansion and marketing. What is the Product? The main product is a proprietary liquid system that is more effective but less expensive than any of the 2 currently existing methods in the market today. Any client using our system will generate savings of 40-60%. Consider that in 2008, in the USA alone, 55 million tests were performed, generating a revenue of about $1.325 billion. The test has been exceedingly successful as a screening procedure for the detection and prevention of disease worldwide. Why Is It an Excellent Opportunity? This is an excellent investment opportunity because our test product is the only liquid-based type in the market that can be used manually and yet is affordable even for uninsured individuals or economically disadvantaged groups. It is especially suitable for developing and undeveloped countries. Because of the current economic times, many diagnostic laboratories are seeking to cut costs to increase their profit margin. Our proprietary method is a very attractive alternative because of its cheaper price point. The product began selling in Summer, 2009 and has been acquiring an average of one customer per week in the USA. How Much Are We Looking For? We are looking for $3M to use for company expansion and operations. Up to this time, that Company has been financed through initial product sales and management funding. The intended uses are for: 1) increasing inventory; 2) expanding sales and marketing; 3) US federal regulatory expenses; and 4) operational expenses. What Is the Company’s Projections? The Company financial projections based on annual sales for products is Year 1--$2.330M; Year 2--$7.968M and Year 3--$15.603M. How will we be paid back? 2012 Estimated Run Rate = $25M Annual Revenue with EBITDA $7.5 M The Company’s exit strategy is as follows: 1. Company Sale: 4 significant transactions in similar product niche in 2006-2008 with multiples of 4x-8x revenues. 2. IPO: based on market conditions, growth trajectory and company valuation 3. Merger and Acquisition: roll up opportunities with other diagnostic companies 4. Continued Growth: research and development, expansion of market Payback mechanism shall be stipulated in an agreement and may be based on stock options, cash repayment, or a combination thereof.