Extensive network of relationships
We have cultivated an extensive network of relationships with entrepreneurs, inventors, technology transfer organizations, lawyers, patent attorneys, accountants, investment bankers, venture capitalists, and commercial enterprises in the medical and agricultural technologies markets. Through our extensive network of contacts, we are able to generate quality deal flow as well as undertake fund-raising activities.
Our network of relationships introduces 450 to 500 opportunities for our review annually. Approximately 45 opportunities a year receive in-depth attention, of which we seek to support and invest in 8 to 10. We have raised approximately US$25 million in equity since our establishment in 2007 to support our activities.
Physical facilities and environment to support our portfolio companies
During their first 2 to 3 years of operations, our portfolio companies are housed in one of our two incubator facilities. Our offices provide portfolio companies with a comfortable space in an entrepreneurial environment. The entrepreneurs benefit from working in close proximity with one another as it creates an environment that encourages cooperation, sharing ideas, brainstorming, and learning from one another. By working physically in one of our incubators, the companies have direct access to our extensive support structure, as well as to shared laboratories and equipment. Having the companies in our facilities increases our ability to monitor a company’s progress and to intervene, assist, and support as required.
Strong management team and track record
We have a strong management team with deep experience in creating, investing in, and developing companies to exit. Our Chief Executive Officers and Chairmen are both U.S.-born and educated and have lived in Israel for decades. Each has over 25 years of experience in investing, business development and bringing technologies to international markets, including in North America and China. Our key executive officers and staff are highly skilled; some hold advanced degrees in the fields of medicine, dentistry, plant genetics, electrical engineering, biomedical engineering, and business administration.
We believe providing extensive technology and business support is a necessity to successfully establish and grow young portfolio companies. We have assembled a team that understands global markets and possesses the ability to bridge cultures to build businesses.
Leveraging on their collective experience, our management team is able to develop and execute exit strategies for our portfolio companies. In this regard, since our establishment in 2007, we have taken two of our portfolio companies, FlowSense Medical and E.T. View, public on the TASE by way of reverse mergers and led four other portfolio companies (PolyTouch Medical, Inspiro Medical, Innolap Surgical, and one undisclosed) through successful acquisitions or sales to multinational corporations.
Effective use of funds
We initially fund our portfolio companies with what might be considered small amounts of capital so as to be highly efficient in our use of capital. Our ability to successfully limit the amount of capital that we put to work is predicated, in part, upon the fact that our portfolio companies, for at least their first 2 to 3 years, are located in our facilities and are extensively supported by our staff.
In addition, as a result of the franchises granted to Trendlines Medical and Trendlines Agtech by the Israeli government, we are able to leverage our portfolio investments with R&D grants from the Israeli government through the Technological Incubator Program (TIP). A typical investment of approximately US$98,000 is matched by the government in the form of contingent grants to a new company of approximately US$557,000.
Strong reputation and brand
Over the years, Trendlines Medical has twice been named the best incubator in Israel by the Israel’s Office of the Chief Scientist (OCS) and five of our portfolio companies have been named the best start-ups of the year by the OCS. Together with our track record of successful companies and exits, and the events that we sponsor, we believe we have built a reputation as being one of the best incubator organizations in Israel.