EBS Technologies | Updates
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By Team EBS Technologies

The EBS Exit Strategy

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Dear Companists,

We briefly want to explain to you why the chances of an exit are very good for EBS Technologies.

 

Experienced Venture Capital Companies Help Their Investments Prepare for a Potential Exit

The ultimate goal of a medical technology start-up and its investors is to achieve an exit. If one considers the projected revenue of EBS (EUR 5.1m in 2019), this revenue cannot be the only motivation to invest. This fact does not change significantly if one considers an upside scenario for EBS that projects EUR 19m in revenue achieved through an increased budget. Experienced and very successful venture capital experts such as Earlybird are aware of this and thus actively support their medical technology companies in their preparations for a potential exit.

 

List of Recent Major Exits of Medical Technology Start-ups

 

Medical technology start-ups benefit from a special situation in the research & development departments of major medical technology companies, as Thom Rasche, partner at Earlybird (the international venture capital company who is a shareholder of EBS Technologies), explains:

"The exit of a medical technology company – such as EBS – usually occurs in the form of a sale to a major medical technology company. The above chart shows various sales of companies that were sold for high amounts before their FDA (U.S. Food and Drug Administration) approval and that had only received a CE mark before the sale.

Major medical technology companies spend high amounts on research and development in order to improve their product portfolio. Nonetheless, they tend to leave groundbreaking innovation to smaller start-ups. In fact, a division of labor has developed: Start-ups develop new technologies, have them approved in Europe, and take care of the initial commercialization of the products. This initial commercialization then serves as the proof that international medical technology companies with a global sales force can position the product within the market and have considerable success in selling the product fast.

This is the basic hypothesis on which Earlybird bases all of its investments in medical innovations, for major companies are certainly willing to spend considerable amounts on the purchase of technologies in order to ensure the growth of their business if the risks have been reduced: The technology has been approved, is achieving good results in clinical trials, is backed by renowned scientists, and is already generating revenue in world renowned markets. EBS has already met all of these requirements, so we believe the company is well on the way to a successful exit.

Crowdfunding by the Companists will help increase awareness of the technology and further prepare the company for an exit."

The chart above also shows that neither the approval by the FDA nor significant revenue was important for an exit. 

 

EBS Technologies Serves the Needs of Two Markets – and May Achieve an Exit in either

The investment is marked by the right combination of a very large market, an absolutely new and patented technology, and a position within one of the most promising fields of medical technology. If this combination works well and the market develops positively, the exit value may be significantly higher than the original investment. EBS Technologies is active within as many as two markets:

  1. The field of ophthalmology with its very important medical indication of glaucoma is already served commercially today, whereas
  2. the field of neurology with the very important medical indication of stroke will be served commercially soon.

Consequently, EBS is addressing two different groups of potential acquirers from the industry, and the pharmaceutical industry is also interested because it expects higher efficiency of its active ingredients when combined with non-invasive electrical stimulation. The NEXT WAVE™ technology, which is protected by various patent families and has been patented in the EU, in the U.S., and in Japan, thus provides an ideal basis for the careful and sustainable market introduction of our therapy method. The quality of this market launch clearly has the highest priority, and EBS ensures this quality through the strategic collection, analysis, and publication of data on effectiveness and through additional clinical projects among other things. This is precisely the core skill of medical technology start-ups: They establish a technology in a way that enables large companies such as Medtronic or Johnson & Johnson to acquire the technology and promote it using their expertise in marketing and sales. In fact, large companies focused on permanent growth are forced to acquire such technologies because they have to introduce innovative products to the market on a regular basis. Such an exit is the central focus of EBS Technologies. The latest example of an exit in the electrical stimulation industry is Medtronic Inc., which acquired Sapiens SBS for an estimated USD 200m in August (read more here).

 

Best regards,

EBS Technologies



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NOTE:

Investments in crowdfunding projects offer great opportunities, but they are risk investments. In the worst case, the entire investment amount may be lost. Consequently, these investments are unsuitable for retirement plans. However, there is no obligation to make further contributions. Investors can minimize their risk by splitting their investment amount between crowdfunding campaigns rather than investing all of it in one crowdfunding campaign. Professional investors often follow this strategy because it causes the risk to be distributed among several investments. In this way, successful investments can balance other less successful investments.

The shares of the Companists are subordinated profit-participating loans (partiarische Nachrangdarlehen). Such loans are shares in a business with similar characteristics as equity. If the company becomes insolvent or is liquidated, the claims of the Companists – just like those of all other shareholders of the company – will be satisfied from the assets in the insolvency or the assets in liquidation only after the claims of all other external creditors have been satisfied. Thus, Companists are treated like any other shareholder of the company during insolvency or liquidation proceedings.

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684

Companists

258,825 €

Invested

3.67 %

Share offered

Contact Details
EBS Technologies GmbH
Neuendorfstraße 20 b
16761 Hennigsdorf
Germany

Email: invest@ebstech.de
Website: www.ebstech.de
Please note
The acquisition of this asset involves considerable risks and can lead to the complete loss of the assets used.

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