The Management Team’s philosophy and sector focus has, in the past, produced substantial and consistent returns over the long term. Building on this philosophy, Amphion seeks to make active investments in life sciences companies where its company-creation methodology is likely to result in the successful commercialization of defensible and proven intellectual property.
Additional Partner Companies will most likely be ones with broad-based, proprietary, platform technologies in the areas of pharmacogenomics, proteomics, nutriceuticals/wellness, diagnostics, medical products and related fields, leveraging advances in and the convergence of materials science and life science IT (particularly software) technologies.
Amphion normally begins its participation as a lead investor in financing early stage private companies, often spun out of universities and corporations, with an embryonic management team, requiring small amounts of capital and likely to benefit most from Amphion’s company-building skills and network. Amphion would not normally make investments in publicly-traded technology companies but, from time to time, opportunities may present themselves that meet the other criteria and the fact of being public would not, in and of itself, rule out that opportunity. Initially, Amphion typically requires significant ownership of, and influence over, the Partner Company, if not outright control. Amphion seeks to invest at an early stage in a company’s life-cycle, together with corporations, governments, universities and entrepreneurs.
The preferred profile for an investment is a company that requires up to $5 million of new capital in the first one to two years, with later, additional capital requirements of $15-25 million. Amphion invests its own capital in each Partner Company, primarily in the form of preferred stock or convertible debt. Amphion’s investment is often leveraged further through the ownership of stock warrants and/or stock options. Amphion usually also seeks to enter into an advisory agreement in return for cash fees for providing additional services to the Partner Companies.
Although the initial investment may be a controlling stake, the Company expects, as further funding takes place, to introduce additional investors and to see its shareholdings in Partner Companies fall to 10-20% by the time of “exit”. Such an exit opportunity would normally be through sale or distribution of shares following a flotation or through a trade sale of the entire company. However, Amphion may decide not only to invest in Partner Companies during their private financing rounds, but also to continue to invest at the initial public offering and beyond.