Much has been written about the time it takes to file an Initial Public Offering. Often overlooked is the pre-file planning which can take as long as many years.  So, how far in advance should you plan your IPO?

The short answer is you should prepare as much as 36 months in advance.  While the tail end of this preparation period will be consumed with the formal filing preparation including negotiating with bankers, compliance, road shows etc., much of the early preparation involves ensuring that your company has the needed structure and resources to be successful come filing time.

The following recommendations should be considered a minimum of two years prior to filing:

 #1 Hire a CFO with real public company experience

The required skill set of a high growth private healthcare company CFO is significantly different than that of one which is public.  It is paramount that you hire a CFO that has public company experience and ideally has previously survived the IPO process, soup to nuts.

Public company CFOs need to focus their efforts on making internal controls part of every single day and must be familiar with the requirements of the Sarbanes-Oxley Act of 2002 and the Jumpstart Our Business Startups Act of 2012 among other key regulations. Learning such nuanced elements of the process on the job is an IPO killer.

#2 Build systems early and integrate into your normal processes

As the old M&A adage goes - ‘Build it today like you are selling it tomorrow.’.  Something similar can be said about IPO prep.  

Companies should develop the needed systems, in particular financial controls as early as possible.  This most commonly serves as a mechanism to purge any problems with systems or controls that exist far earlier than may otherwise be possible.

CFOs will need to address gaps in controls by completing a risk assessment, and should also finalize disclosure processes, which is the quarterly equivalent of the Section 404 yearly disclosure, as early as possible. Additionally, by adopting proper systems and processes into your month and quarter end periods your team can ‘practice’ working within a simulated post IPO environment.  This experience can help ease the shock of the formal process changes post IPO.  

Prior to completing a successful IPO you will be required to do this work.  Preparing in an environment that affords you the needed time and focus to do so correctly will pay future dividends.

#3 Build a board with public company experience

The strength of your board of directors can significantly impact the success of your future IPO. Be sure to recruit members with public company experience who can directly support the growth of the business.  Board members with specific skills needed post IPO are also preferred (like someone to sit in as the audit chair, for example).  While initial pricing is based on many other factors, do not discount the idea that your board can directly impact the interest in and price of your IPO in a very real way.

#4 Address the costs early on

Running an IPO process carries significant costs.  Understanding these costs and budgeting for them as far in advance will ensure that they do not become burdensome in mission critical times.  All IPOs have both a fixed and variable cost component.  While the variable cost piece is paid from proceeds, the company filing will have to carry all fixed costs including listing, legal, underwriting, due diligence.  These fixed costs can range from hundreds of thousands to millions of dollars depending on the company, so plan accordingly.

While there is no exact timeline for advanced IPO preparation, the sooner you start the process the easier it will be during the challenging, time intensive and costly months that immediately precede your offering.  

Is your healthcare EGC considering an IPO? If so, please do not hesitate to contact US. Our team has global reach, deep expertise and is dedicated to exclusively serving companies like yours.  Lean more about us at www.healthios.com

CHICAGO, April 7, 2014 — HealthiosXchange announced today that it has become a member of the
Angel Capital Association (ACA), the world’s leading professional and trade association for angel
investors.

“Affiliating with such a prominent organization as the ACA is in keeping with our standard of creating
strong relationships with the leading angels, venture capitalists, foundations and other capital sources,
which we believe is crucial for funding medical technology companies from seed to exit,” said Scott
Jordan, CEO of HealthiosXchange.

“The ACA has set a high standard for connecting with equity marketplace technology platforms made up
exclusively of accredited investors. Given that HealthiosXchange is unique among equity-based
crowdfunding platforms in that we are a broker/dealer, we have set a high bar ourselves when it comes to
investor protections,” Jordan continued, “and thus HealthiosXchange is in sync in with the ACA’s mission
of fueling the success of angel groups and accredited investors in high-growth, early-stage ventures."

About ACA (www.angelcapitalassociation.org)
The Angel Capital Association is the world’s leading professional and trade association supporting the
success of angel investors in high-growth, early-stage ventures. ACA provides professional development,
industry voice, public policy advocacy and an array of benefits and resources to its membership of 200
angel groups and more than 10,000 individual accredited investors across North America.

About HealthiosXchange (www.healthiosxchange.com)
HealthiosXchange is an equity-based crowdfunding portal and broker/dealer that raises funds under Rule
506 (b) and (c). A member-only site, HealthiosXchange offers private placements to accredited investors.
Some 1600 accredited investors, emerging growth companies, investment professionals, and strategic
buyers are registered members of HealthiosXchange.

News From MATTER
 

MATTER secures $4.4M from Illinois-Area Healthcare leaders

 

Public and Private Investment now Exceeds $8M with MATTER on Track to Launch in Early 2015
 

 

CHICAGO (November 19, 2014) – MATTER has secured private-sector commitments of $4.4 million to support Chicago’s new entrepreneurship and innovation hub for next-generation health IT, medical device, diagnostics and biopharma companies. The $4.4 million in private investment complements the $2.5 million grant and $1.5 million loan provided by the State of Illinois, and means that MATTER will launch with an initial capital commitment of more than $8 million.
 
MATTER’s initial strategic partners include many of the biggest names in the region’s healthcare ecosystem, including industry leaders, technology and health providers and professional organizations.  MATTER will help connect partners with innovators and entrepreneurs, unite Chicago’s dispersed health technology community and accelerate the formation and growth of new businesses that can revolutionize healthcare. MATTER’s strategic partnerships will also give startups the rare opportunity to collaborate with and learn from industry leaders that can help them develop and launch their innovations.
 
MATTER’s initial strategic partners include:

 

  • AbbVie
  • Allscripts
  • American Heart Association
  • Astellas Pharma US, Inc.
  • AVIA   
  • CDW
  • Comcast
  • Crain's Chicago Business
  • EdgeOne Medical     
  • Ernst & Young LLP   
  • Healthios
  • Horizon Pharma
  • Insight Product Development
  • Jones Day      
  • JPMorgan Chase                   
  • OSF Healthcare/Jump Center
  • Marathon Pharmaceuticals
  • Marshall, Gerstein & Borun LLP
  • Medline Industries, Inc.
  • NorthShore University HealthSystem
  • Sidley Austin, LLP
  • Silicon Valley Bank
  • State Farm
  • Takeda Pharmaceuticals
  • William Blair

"MATTER's partners will accelerate their access to new healthcare technologies and expand their presence among the region's innovators and entrepreneurs," said Steven Collens, MATTER CEO. "Together with our strategic partners, MATTER is building a community that will accelerate the formation and growth of next-generation healthcare technology businesses."
 
“Our relationship with MATTER is a strategic partnership for Astellas and an initiative we feel strongly will have a positive impact on Chicago’s healthcare economy,” said Jim Robinson, president of Astellas Pharma US, Inc. “By bringing together industry leaders, researchers and early-stage entrepreneurs, MATTER will act as a facilitator to drive collaboration that’s been difficult to effectively accomplish through other channels at scale.”
 
“Investing in and supporting innovation in healthcare is core to AbbVie’s mission,” said Jim Sullivan, Ph.D., vice president, pharmaceutical discovery, AbbVie. “MATTER will foster new ideas and provide valuable support to local entrepreneurs as they explore new frontiers in healthcare. We know that innovation requires a collaborative approach and AbbVie is proud to support the creation of this Chicago-based healthcare technology incubator.”
 
MATTER is scheduled to open in early 2015 and is currently accepting applications for membership. Interested entrepreneurs should visit www.matterchicago.com. Membership rates start at $150 per month and include access to MATTER’s mentor network, workshops and events designed to help entrepreneurs and innovators accelerate the growth of their companies. MATTER will also provide space to venture capital firms, research universities, healthcare providers and established companies.
 
MATTER is a not-for-profit organization developed by a team of entrepreneurs and industry leaders and supported by the state of Illinois. ChicagoNEXT, Mayor Rahm Emanuel’s council on technology and innovation, helped develop MATTER and is a key partner.
 
“These private sector partnerships will help MATTER to continue driving entrepreneurship in the rapidly expanding healthcare and biotechnology fields,” Governor Pat Quinn said. “We are proud to partner with MATTER to take our healthcare technology industry to the next level and keep Illinois as a national leader in life sciences and health innovation.”
 
“MATTER is already helping to drive Chicago’s healthcare economy forward by bringing together corporate partners from across the healthcare industry to drive innovation and create jobs in Chicago,” said Mayor Rahm Emanuel. “This investment by the private sector means that new companies will have the opportunity to grow and provide an economic engine for our city into the future.”
 
About MATTER
MATTER is a community of healthcare entrepreneurs and industry leaders working together in a shared space to individually and collectively fuel the future of healthcare innovation. MATTER’s mission is to proactively connect and promote collaboration between entrepreneurs, scientists, physicians and industry partners in order to bring next-generation products and services to market that improve quality of care and save lives. For more information, visit www.matterchicago.com and follow @matterchicago.

CHICAGO  – March 9, 2015 – According to Forbes Magazine, there is a “War for Talent” emerging from healthcare reform in the U.S. (See: http://tinyurl.com/l2q9p2v).  Chicago area startup Go2Nurse, Inc. (www.Go2Nurse.com) seeks to cure this pain and capitalize on the nascent huge demand for infantry in this war by becoming “The Uber of Nursing,” according to its CEO Meg J. P. Kubiak, a registered nurse and health education author.  The Company recently registered a convertible debt offering paying 8% interest with the U.S. Securities Exchange Commission (see: http://tinyurl.com/p9tg6o9).

“The Uber business model will soon come to healthcare,” wrote Stuart Karten, Principal of Karten Design (www.kartendesign.com), a product innovation consultancy, in a recently published article. “Just as Uber changed transportation in positive—and sometimes controversial—ways, healthcare will be infiltrated by startups wanting to change the healthcare model from hospital-centric to patient-centric.  Medical device companies and other healthcare providers that don’t realize that a major shift is taking place will become the equivalent of today’s taxi industry,” says Karten (see: http://tinyurl.com/mjsapc2).

Kubiak agrees. “Nurses have long been at the center of care logistics and implementation, acting as patient advocates while physicians have made the important decisions. What we are doing with Go2Nurse is placing care coordination and all of its logistics, entirely in the hands of patients and their nurses, via our smartphone app. There is no substitute for licensed medical doctors but their time is becoming more and more constrained and wasted these days on ‘paperwork,’ electronic and actual paper that does nothing to cure patient ills. There is a huge cost in real dollars for this wasted physician time and Go2Nurse intends to vaporize these unnecessary costs through a proprietary leap in technology.”

According to Kubiak, her company started producing revenue by servicing an Illinois Medicaid-funded HMO, a “Coordinated Care Entity” (CCE) in ObamaCare parlance.  Go2Nurse serves the CCE with registered nurses who act as case managers, becoming the central point of contact for enrollees in Medicare, Medicaid and ACA-created healthcare organizations.  “Our CCE client serves far south portions of Cook County” says Kubiak. “In this population there is a sizeable proportion of Spanish speakers. Our Go2Nurse app has a really cool, fun and useful feature for these folks, among many others. When needed, Go2Nurse can translate back and forth, in synthesized voices, out loud, from English to Spanish and back. It’s not just limited to these languages however.

‘There are currently 51 languages in our library. If a nurse needs to ask a question like “How long have you been taking blood thinners?” for example, the nurse speaks that question out loud, in English, into his or her Go2Nurse app-equipped Android phone and out comes “¿Cuánto tiempo ha estado tomando anticoagulantes” in a pleasant female voice through the smartphone speaker. Some of the languages are translated only in writing, as we update and improve our capabilities”.

Go2Nurse’s securities offering is made under SEC Regulation D, Rule 506(c), The JOBS Act and is available only to accredited investors. HealthiosXchange is acting as listing agent.

New nursing care models are cropping up around the United States. In New Mexico there is a NurseAdvice call center which mirrors some but not all of Go2Nurse’s functions, see:http://tinyurl.com/p6bxfef.  “This field is a hotbed of creativity and unplowed territory” said Kubiak, who cites Dr. Eric Topol’s book “The Creative Destruction of Medicine” as a source of inspiration for Go2Nurse.
FUNDING CHALLENGES

“Chicago is among the wealthiest global cities” says Scott Jordan, Vice President of online finance platform HealthiosExchange (http://www.healthiosxchange.com). “There are hundreds of billions invested from this area every year.  But … many investors are more Series B than Series A meaning they have a risk-averse appetite.  If companies are seeking early-stage capital (~seed money), the Midwest is a challenging region to raise the funding.  At Healthios we recognized this and created HealthiosExchange, an investment marketplace where companies like Go2Nurse can connect with high net worth ‘accredited’ investors. Companies can leverage 506(c) of the JOBS Act to market offerings to investors without previous relationships on the portal if they submit documentation to the SEC. Once filed, company offerings are marketed to “the public” in our “Funding Now” portal and highlighted in member/deal newsletters. Go2Nurse is there now.”

Kubiak says that Go2Nurse is globally scalable. “There are about 2.5 million licensed nurses in the United States who are not employed in the nursing profession.  Many are young parents focused on their children. Other nurses are simply weary of the old order, where institutions and senior providers take advantage of their natural demeanors as caregivers and then burnout eventually comes.  Go2nurse and its app move the fulcrum of control to nurses and their patients. It’s a far more satisfying way to live one’s daily life and profession than the conventional clinical environment. Two million nurses with 20 patients each can care for every person in the United States and the projected population for the next 20 years.”

As for thinking big, Kubiak says “Our Go2Nurse app is already multilingual and multicultural. There are more than 2 billion smartphones in the world and almost everybody holding one is a prospective client for us.  Show me a person with a smartphone who’ll never need a nurse and I’ll show you someone buried with their smartphone.”

As for building a company in Chicago without regard to the availability of early stage capital, Kubiak says “Once you get past a certain development stage, Chicago transforms from “Valley of Death” backwater to the global city it bills itself to be.  I am a clinician.  What gets me up in the morning is healing patients and bringing babies into the world. My co-founders are technologists and medical doctors. As we raise this first outside capital round we are on the lookout for directors and seasoned managers from large enterprises around Chicago.  Companies like Google, Abbvie, Allscrips, Walgreens etc., should be good sources for senior Go2Nurse management at the right time.’

‘We foresee a meaningful exit opportunity starting about 2018. From our point of view, our business model is imbued with all the sustainability we could ask for. There are plethora companies entering this space and many have truly great ideas and technology.  Sustainability is the key to return on capital for investors and we have it.  We produce revenue by selling in a time-honored, conventional, direct ‘wholesale’ way and we do not reply upon a huge marketing budget per client.”

According to Kubiak, Go2Nurse has a book of business that already exceeds its 2015 revenue forecast. “We expect to be making an announcement in the very near future that makes this clear” she says.

The Go2Nurse app is available on Google’s Play Store and Amazon’s Kindle Store as a Kindle app. Part of the company’s use of proceeds in its current financing round, is to port Go2Nurse over to iOS phones, tablets and perhaps also, the coming Apple Watch. Years down the road according to Kubiak, is a cloud service called NurseFlo, an artificially intelligent online and app-linked avatar that, according to Kubiak, is intended to speak to patients in their chosen language and “triage” cases for handoff to real, live people.  A company called Sense.ly located in San Francisco (there’s that West Coast problem again) recently raised $1.25 million in capital from accelerator Launchpad Digital Health, Eastlink Capital Management, and five angel investors. According to MobiHealth News (http://tinyurl.com/p4ylvmz) Sense.ly was incubated at European mobile operator Orange and spun out as an independent company in 2014.

According to the New York Times’ Deal Book, the Uber car sharing service recently raised $1 billion at a $40 billion valuation (see http://tinyurl.com/kvrkl5q). Go2Nurse’s post-money valuation as expressed in its private placement memorandum, is about $2.5 million on a fully diluted, fully converted basis, after the Company’s Series A convertible debentures are converted, if converted at sole option of investors, said Kubiak. Go2Nurse’s debentures pay an 8% current yield on a note due in 12 months. The Company’s $1 million offering is made in units of $1,000 each of which $960 is the note portion and $40 purchases warrants.  The $960 is repaid in 12 months and Go2Nurse expects that most investors will convert their debt into shares or warrants.

Accredited investors interested in receiving a copy of Go2Nurse’s private placement memorandum (PPM) should send a request directly to Kubiak via email to: This email address is being protected from spambots. You need JavaScript enabled to view it.or register with HealthiosExchange.  Those first registered with Healthios atwww.healthiosxchange.com, may reserve their place in Go2Nurse’s offering.  Any and all inquirers wishing to receive a copy of the Company’s PPM must first sufficiently represent to the Company that they are in fact accredited investors under the SEC’s definition, which may be viewed here at Investopedia.com: http://www.investopedia.com/terms/a/accreditedinvestor.asp

ABOUT HELTHIOS

(See Healthios website: http://www.healthiosxchange.com/pages/who-we-are)

# # #

Go2Nurse contact: Meg J. P. Kubiak, RN, BSN: This email address is being protected from spambots. You need JavaScript enabled to view it.

Kubiak LinkedIN: http://www.linkedin.com/pub/malgorzata-meg-kubiak/88/5b1/59a/

Go2Nurse SEC CIK Number: 0001635130

Healthios Contact: Scott Jordan, Vice President: This email address is being protected from spambots. You need JavaScript enabled to view it.

Jordan LinkedIN: http://www.linkedin.com/in/sjordan1

Source: http://www.go2nurse.com/news-media/

CapBridge brings on more partners, strengthens platform and prepares for pilot run next month
CapBridge (www.capbridge.sg), a capital-raising platform dedicated to connecting high-growth companies globally to investors and smart monies from key markets has brought in new partners to strengthen both the platform and operational team. Initially set up by Singapore Exchange (SGX) and Clearbridge Accelerator (CBA), CapBridge has now brought on board HealthiosXchange as a strategic partner and DBS Bank as a marketing partner.

“We are delighted to join CapBridge as a strategic partner,” says David Loucks, CEO of Healthios Xchange. “As the global financing markets continue to evolve, technology is playing an extraordinary role in transforming private capital investment markets. CapBridge is at the centre of this transformation, providing investors with the means to improve returns while moderating risk and enabling the most promising growth companies to expand their access to much-needed financing.”

CapBridge is launching its first batch of companies seeking capital in July 2015. A total of ten (10) companies from around the world will be featured in this pilot run with a combined indicative deal value of approximately SGD$138 million.

“Our partnership with CapBridge demonstrates SGX’s commitment to support the growth of SMEs in Singapore. We believe that the CapBridge platform will play an important role in enabling SMEs to raise funds more efficiently,” said Mohamed Nasser Ismail, Head SME Development & Listings SGX.
SGX announced that it will provide up to $1.5 million to CBA to support the development of CapBridge platform today.

The CapBridge platform has been well received internationally from recent roadshows. Accredited investors and Institutional Investors can benefit from better quality deal flow in high growth, innovative technology companies. Companies will benefit from access to smart money, as well as an efficient and cost-effective way to raise funds.

“The launch of this platform is timely as it will help investors to be involved in companies with exciting technologies and great potential. We look forward to having our A*STAR spin-off companies to be on-board the CapBridge platform. We are confident that A*STAR’s R&D portfolio will continue to build a strong pipeline of Singapore companies that will be attractive to investors,” said Philip Lim, CEO of ETPL, the commercialisation arm of A*STAR.

“Together with CapBridge, DBS will organise joint forums under the DBS BusinessClass programme to educate our SME and accredited investing customers on the intricacies of direct investing. We hope this will lend a helping hand to our innovative start-up customers, who are interested in leveraging equity crowdfunding as a fundraising instrument. Equity crowdfunding compliments DBS VentureDebt, which is a form of debt financing specially structured for innovative start-ups that have earlier raised at least S$1million from partner venture capital firms,” Benny Chan, Executive Director, DBS SME Banking.

“CapBridge is well positioned to take advantage of this global trend in equity funding and we have been privileged to be able to partner best-in-class professionals. We look forward to continuing our growth trajectory given the rapid growth opportunities in key technology markets such as the U.S.A, and Asia,” said Dr Steven Fang, CEO CapBridge and Partner Clearbridge Accelerator.

-End-

Media Contacts
Chan Yiu Lin
Greener Grass Communications
+65 9765 5897
This email address is being protected from spambots. You need JavaScript enabled to view it.

About CapBridge
CapBridge is a capital raising platform dedicated to financing promising high growth companies globally, with a focus in Asia. Combining advanced financial technologies with comprehensive service throughout the investment and development horizon, CapBridge connects mid or late-stage high growth companies with financial intermedaries, accredited investors and strategic buyers globally across key industry sectors.

CapBridge is based in Singapore, featuring a premier geographic presence, an unparalleled legacy of growth, and superior access to the global financing markets. We seek to transform the manner in which capital is invested – and value is realized – throughout the emerging growth community. CapBridge is well positioned through its extensive experience in developing a world-class capital markets system, championing the interests of entrepreneurs and high growth companies, and successfully financing many of the promising growth companies in the world. http://www.capbridge.sg

About Singapore Exchange (SGX)
Singapore Exchange (SGX) is the Asian Gateway, connecting investors in search of Asian growth to corporate issuers in search of global capital. SGX represents the premier access point for managing Asian capital and investment exposure, and is Asia’s most international exchange with about 40% of companies listed on SGX originating outside of Singapore. SGX offers its clients the world’s biggest offshore market for Asian equity index futures, centred on Asia’s three largest economies – China, India and Japan.

In addition to offering a fully integrated value chain from trading and clearing, to settlement and depository services, SGX is also Asia’s pioneering central clearing house. Headquartered in Asia’s most globalised city, and centred within the AAA strength and stability of Singapore’s island nation, SGX is a leading Asian counterparty for the clearing of financial and commodity products. For more information, please visit www.sgx.com

About Clearbridge Accelerator (CBA)
Launched in early 2010, Clearbridge Accelerator is one of Singapore’s leading venture capital and incubation firms that invests in game-changing healthcare, infosecurity and technology companies. We have a strong track record in leading early stage investments, partnering with visionary entrepreneurs and world-leading institutions. Our team consists of serial entrepreneurs with deep domain expertise, extensive networks and operational experience. Supported by the National Research Foundation’s Technology Incubation Scheme, CBA provides the necessary funding, mentorship, operational and execution discipline to deliver determined and accelerated results. In 2012, CBA became one of the two successful recipients of SPRING Singapore’s Biomedical Sciences Accelerator (BSA) programme, and set up a subsidiary, Clearbridge BSA, to manage a S$40 million fund for medical technology start-up companies. For more information, please visit www.clearbridgeaccelerator.com

About HealthiosXchange
HealthiosXchange is the premier financing platform dedicated exclusively to the global healthcare industry.

In a single market environment, HealthiosXchange assembles 6,000 Emerging Growth healthcare companies from (37) countries, together with 30,000 investors in (10) asset classes and 2,000 strategic partners representing (46) market sectors. Since 2013, Healthios clients have raised more than $300 million.

About DBS Bank DBS - Living, Breathing Asia DBS is a leading financial services group in Asia, with over 280 branches across 18 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's capital position, as well as "AA-" and "Aa1" credit ratings, is among the highest in Asia-Pacific. DBS has been recognised for its leadership in the region, having been named “Asia’s Best Bank” by The Banker, a member of the Financial Times group, and “Best Bank in Asia-Pacific” by Global Finance. The bank has also been named “Safest Bank in Asia” by Global Finance for six consecutive years from 2009 to 2014. DBS provides a full range of services in consumer, SME and corporate banking activities across Asia. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. These market insights and regional connectivity have helped to drive the bank’s growth as it sets out to be the Asian bank of choice. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia. With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 21,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.