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1/ Announcing something NEW @ Lux.
We are committing very big money
to a very big opportunity ahead.
(Led by my brilliant partner + cofounder @peterjhebert)
Here's what + here's why
We are committing very big money
to a very big opportunity ahead.
(Led by my brilliant partner + cofounder @peterjhebert)
Here's what + here's why
2/ We will be investing a BIG part of $1B of newly raised capital at the intersection of a HEALTH + TECH megatrend.
Forget buzzwords of "AI & machine learning, robotics + automation + machine vision"
––they only matter if they enable attractive high-growth business models...
Forget buzzwords of "AI & machine learning, robotics + automation + machine vision"
––they only matter if they enable attractive high-growth business models...
3/ Here's WHY––
Today' medtech industry hasn't kept pace with the rate of innovation + value creation of TECH companies
VC-backed medtech has produced only a HANDFUL of innovative companies with large cap valuations since the turn of this century...
Today' medtech industry hasn't kept pace with the rate of innovation + value creation of TECH companies
VC-backed medtech has produced only a HANDFUL of innovative companies with large cap valuations since the turn of this century...
4/ There are incredible success stories — Insulet, Livongo, 10x Genomics, NovoCure, Guardant, Penumbra, and iRhythm, to name a few —
but only ONE of the companies sits above $15 billion in market value....
but only ONE of the companies sits above $15 billion in market value....
5/ To find larger success stories we have to look back to Intuitive Surgical (now $81 billion in market cap), which was founded in... 1995!
Another huge success founded by Lux's late partner Larry Bock––last century––Illumina–– in 1998 is now over $45 billion in value. BUT...
Another huge success founded by Lux's late partner Larry Bock––last century––Illumina–– in 1998 is now over $45 billion in value. BUT...
6/ Beyond that––slim pickings.
In CONTRAST over the same time TECH created trillions of dollars in shareholder wealth from a blank canvas, propelling once humble start-ups to the upper echelon of the S&P 500: AMZN, FB, GOOG, Salesforce, Paypal, Netflix, Broadcom, ServiceNow…
In CONTRAST over the same time TECH created trillions of dollars in shareholder wealth from a blank canvas, propelling once humble start-ups to the upper echelon of the S&P 500: AMZN, FB, GOOG, Salesforce, Paypal, Netflix, Broadcom, ServiceNow…
7/ The list of multi-billion public TECH founded since 1995 is in the hundreds
So too biotech––from 1976 creation of Genentech (+ Amgen in 1980) scores of public co's valued in billions — Gilead, Vertex, Biogen, Regeneron, Alexion, Incyte, BioMarin, Moderna...
Medtech? BUBKIS.
So too biotech––from 1976 creation of Genentech (+ Amgen in 1980) scores of public co's valued in billions — Gilead, Vertex, Biogen, Regeneron, Alexion, Incyte, BioMarin, Moderna...
Medtech? BUBKIS.
8/ Current crop of public US medtech — Abbott , Baxter , Becton Dickinson, Boston Scientific, J&J, Medtronic, Stryker, Zimmer — have an average founding date of... 1924.
Their age creates one significant disadvantage––REALLY dated business models.
Their age creates one significant disadvantage––REALLY dated business models.
9/ WHY?
medtech VC for too long saw success in tuck-in M&A fetching relatively low price tags in the low-to-mid hundreds of millions.
The result? Low ambitions + consolidation in the industry around a few REALLY old centenarian incumbents.
medtech VC for too long saw success in tuck-in M&A fetching relatively low price tags in the low-to-mid hundreds of millions.
The result? Low ambitions + consolidation in the industry around a few REALLY old centenarian incumbents.
10/ We've over the past few months been quietly assembling + partnering with some INCREDIBLE savvy scientific entrepreneurs.
And many plans are NOT yet announced...BUT...
And many plans are NOT yet announced...BUT...
11/
TODAY we announce the start of a new initiative, which we intend catalyzes + ultimately leads to––
a NEW generation of standalone medical technology companies developing high-impact, high-growth, and high-value platform innovation:
Lux Health + Tech.
Stay tuned...
TODAY we announce the start of a new initiative, which we intend catalyzes + ultimately leads to––
a NEW generation of standalone medical technology companies developing high-impact, high-growth, and high-value platform innovation:
Lux Health + Tech.
Stay tuned...