cultivateMD is a unique, medical venture capital fund.
Unique, because we leverage our years of seasoned healthcare experience, across all disciplines necessary, to come alongside strategic technologies and companies to positively impact executable results.
In this, we focus on investing in technologies that improve outcomes and reduce cost from the healthcare system.
The healthcare and medical device space is a top area of focus, spending and high growth worldwide. This, of course, creates a very healthy and positive environment for strategic investors.
Our Healthcare Expertise Is What Sets Us Apart
We are a very focused medical device venture capital fund filled with 22 professionals, most of which are technically based engineers or scientists.
Beginning in 2014, our purpose was to raise additional capital to invest alongside of our own personal investment capital, that we could deploy in a number of technologies we thought were valuable, and that we could play a role in increasing their value.
Since that time, we have taken on a few opportunities, and one that has already turned into a very successful transaction.
Reducing The Risk Associated With Medical Device Venture Capital
A big part of what makes us unique is that we believe we can reduce the investment risk by engaging in the actual operations of the companies we invest in.
We realize that we had a very effective means to deploy capital in an attractive way that perhaps reduces the risk by engaging the team that we’ve put in place.
What we’ve also realized simultaneously is we needed more capital in some of the businesses we’d already engaged to continue to drive us to success.
The cultivateMD Investment Strategy
Because of our unique background and expertise, we are able to engage medical device companies at an earlier stage, with a greater amount of confidence. This allows us to make investments at earlier stages when valuations are much more attractive.
This also typically provides us with larger ownership percentages in companies. This also enables us to have a greater role in governance and operations of a company we invest in.
In the end, this allows us to take more risk out of these ongoing or follow-on investments.
Deal Access and Capital Deployment
One of the most prominent challenges investors or venture capital companies typically face is not fundraising – it’s getting access to the right deals in which to deploy those funds.
As a result of our vast experience in the medical device space, we have an extensive network which provides us access to vet opportunities that are the best fit for our unique model and investors.
Additionally, many of the large medical device companies are offloading more development opportunities. This creates this wealth of opportunities for our team and us. These large, multi-national medical device companies have such a need for innovation, they are actively searching opportunities that are pre-FDA filing, pre-FDA clearance, pre-revenue.
The material value can be derived from the innovation that takes place even before the asset commercially ready or is de-risked. Frequently, those early stages are not very costly. There are many opportunities to create a lot of strategic value for not a lot of cash. From our many years in the medical device space and having the networks already established, we are able to quickly pursue and vet these opportunities.
Our deal access often comes at a very early stage, typically pre-Series A investments. Through experience, this is where we understand the strategy and can really leverage our multi-talented expertise.
cultivateMD Operations and Terms
cultivate MD operates as a very traditional medical device venture capital fund. As an investor, you can invest in a fund, and we then deploy those funds into the investments without the pass-through of Genesis.
Our focus is to execute the fundraising in a way that’s most advantageous to our investors.
The terms of the investment are simple and investor friendly. There is a minimum investment of $100,000 for one unit. That investment is broken down into four time-based draws over a longer period of time (2.5-3.5 year period).
We charge a 2.5% management fee on the total commitment of the fund, and we have a 20% carry on the amount distributed over the initial investment. Essentially, there’s no carry until all investors have received their initial capital back in their hands.
Learn More About Future cultivateMD Investment Opportunities
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