Value-Creation Process


Phase I. Creation and sourcing of opportunities

Working with universities, corporations, governments and entrepreneurs seeking to commercialize their intellectual property, Amphion identifies potential company-building opportunities. Throughout the process, Amphion maximizes value creation by drawing upon a collaborative network of strategic partners built over 20 years. This network provides access to innovative technologies, enhances its ability to identify and address unmet market needs and solicits the guidance of industry and technical experts. While this network is a key source of opportunities, it also provides advice and counsel throughout the company-building process that may be technical, financial or business-related and ultimately helps the Partner Companies compete and grow.

Phase II. Down-selection of opportunities

Amphion devotes considerable time and resources to screening for the most attractive business models and proven technology platforms from the available opportunities. Potential opportunities must also provide a tractable corporate and ownership position to ensure that Amphion will be able to implement its company-building process.

Central to Amphion’s selection and investment strategy is rigorous risk management based on identifying companies with proven technology and a quantifiable, verifiable business opportunity. Amphion does not invest in “speculative” technologies requiring long development timeframes or excessive capital investment; it looks for defensible core intellectual property and know-how for long-term competitive advantage, and growth potential in very large markets of at least $1 billion in size — and actively works with Partner Companies from the earliest stages to identify and defend core intellectual property (‘IP’).

For an example of our selection process, please click here - PDF68k PDF

Phase III. Adaptive strategic positioning

Amphion then seeks to optimize its Partner Companies’ products and market positioning through refining or changing the emerging company’s market focus, business model, or strengthening the company management. Concurrently with this process, Amphion will undertake a review of the intellectual property, both strategic IP (i.e. what can be protected) and tactical IP (i.e. what can be protected) both to defend and expand the Partner Company’s competitive advantage and lead time over competitors.

Optimizing the business is often a “trial and error” process of rapid iteration and learning, with the objective of creating a company targeted on the greatest commercial opportunity that also provides a sustainable source of competitive advantage.

From this stage on, Amphion accelerates company development through a methodical and focused application of financial and human resources. The Management Team has traditionally adopted a hands-on approach with each new investment, seconding existing Amphion management to new Partner Companies in order to utilize Amphion’s accumulated knowledge in the company value-creation process, while gaining additional experience and insight which can be applied to subsequent investments.

Phase IV. Scaling and execution

In building its Partner Companies, Amphion typically provides a wide range of services including direct management, strategic planning, intellectual property planning and strategy, capital raising from Amphion’s network of investors, recruiting, business development, and other advisory services in areas such as marketing, administration, and capital markets. Amphion provides these services under an advisory agreement with the partner company and receives fees for doing so.

Amphion will then identify and recruit leading industry talent from its network of life science and technology partners and contacts to strengthen the management of the Partner Company, leading it to the next stage of development, generally an initial public offering or trade sale.

Phase V. Expansion and development

With an experienced industry team in place, Amphion continues to work with its companies over the long term, staying integrally involved with management, and seeking to influence and manage the boards and advisory committees to build value for both Amphion and Partner Company shareholders. To assist in this, Amphion will typically maintain a sizable ownership stake and measure of influence or control in the relevant Partner Company.

Throughout the company-building process, the Management Team strives to ensure that investor interests come before its own, and that the Company’s commitment to its Partner Companies, and investors, is a long-term one. The Company’s philosophy is to support its Partner Companies through difficult times, and provide additional management support when necessary to help them successfully weather downturns while improving their positioning for subsequent upturns.

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