Frequently Asked Questions
What is your investment process?
It breaks down roughly into the following set of steps:
- Initial Review: Does the product meet our four basic criteria (a healthcare service, narrowly focused, potential for rapid scalable growth, and people we like)?
- Brainstorming: What can we add to this idea? How might it be improved? What special considerations are there?
- Detailed Market Analysis: Is this an emerging top priority for healthcare CEOs? What is the competitive landscape? Is the market really as big as it seems? And so on...
- Pro Forma Creation: If we like the product and the market opportunity, we will work with you to build a set of pro forma financial projections to confirm that we see a viable shot at building a profitable, high-growth company with $1M or less.
- Traditional Due Diligence Activities: We verify your representations of fact.
- Create Necessary Documents: Dotting i's and crossing t's.
Will you sign NDAs?
Yes.
How much do you invest?
Our typical investment is between $500,000 and $2 million. Ideally, we'd like to invest about a million dollars to achieve positive cash flow.
What is your track record?
The principals in Blood, Sweat & Capital have an extensive track record of building and managing a diverse array of successful healthcare services (and other) companies - while consistently generating triple-digit annualized ROI performance for founders and investors. Our most recent venture together, Leprechaun LLC, was sold 19 months after we started it, generating an annualized return-on-investment for founding investors in excess of 1000%, as well as one of the most exciting business rides of our lives.
Do we need to write a business plan?
No, but you need to have solid facts about the market you intend to serve, and how you intend to reach it. As part of our process, we seek to confirm what you tell us through our own indepedent sources.
If we submit an idea, how can we be sure you won't steal it?
Ideas, on their own (i.e., without a knowledgeable business partner we can work with), are generally not that interesting to us; we do not lack for exciting ideas right now. So, what we are really looking for is a combination of great ideas with skilled partners - and if we can't find that combination, it's typically difficult for us to pursue an idea. Furthermore, we tend to value integrity pretty highly - so for both practical and ethical reasons, we really have no interest in trying to steal your ideas.
Can you recommend other investors we should consider?
Not generally. Recommendations are a direct reflection on us, and as such, we don't make them lightly. If we don't like your idea, why would we recommend it? If we do like your idea, why would we send it elsewhere?
Are you looking for additional investors?
Not unless they bring more than money to the party. Each of us has operating experience in healthcare companies, and a successful track record of starting companies. We are actively involved with our portfolio companies.
How did you come up with the name Blood, Sweat & Capital LLC?
We held a contest among our friends, family and colleagues. Michael Cader came up with the winning name, for which he received a bottle of 2005 Fisher Vineyards Cabernet Sauvignon. Our logo was designed by ella_z.
