HEI invests in your business by offering first-round funding, health sector knowledge expertise, and third-party assessment to refute any questions or objections investors might have before they even ask. The Phundex-For-Health Platform is based on an end to end eight-stage analysis process named Octad. Phundex- For-Health uses a proprietary review process and scoring algorithm (The Phundex-For-Health Score Card) and our regulated funding partners to prepare a prospectus quality offering for future funding rounds to present HEI’s investees to investors. This systematic and independent assessment allows investors and the investee to make informed decisions and reduce risk.
As academics, commercialization, and investment experts ourselves, we understand the complexity and anxieties of finding private funding. So, we’ve established Phundex-For-Health to help both the investment target and the second-round investor navigate the process and develop the best possible offering to present to the innovation investor market.
The Investment Process
Our Phundex-For-Health review process and a scoring algorithm (The Phundex-For-Health Scorecard) is based on our team’s 100+ years of combined experience and assesses the innovation targets health and business case. The-Phundex Score Card and the information derived from the Scorecard goes through eight stages. The information derived from the scorecard process is compiled into the Phundex-For-Health’s ‘Investee Document’ and is the basis for the Offering Memorandum. HEI works with a target to ensure the highest possible score before creating an offering. The Phundex-For-Health puts the innovative target through an unprecedented procedure for businesses of this size. This is because over 94% of small to medium-size businesses fail before they get to two years. The reason for this failure, is he majority of these failed business do not use an underwriting procedure like Phundex-For-Health.
The process includes the following stages of Phundex-For-Health:
- Vision – HEI is introduced to an investment target from an innovative investment organization or professional third party. First, the target and organization are asked to complete an intake form that provides information about the target, the target’s innovation proposal, and progress to date. Part of this process is the start of the Phundex-for-Health assessment and puts the target through a vision developer scorecard. If the target achieves the appropriate score, they go through step 2; if they do not proceed, HEI gives the investment organization the option to put the target through their vision developer, ‘VizBiz’, to develop their business plan to the level required.
- Validation: HEI ensures that our investment target has validated a real-world unmet medical need in a target population has that been identified,
- Verification: HEI ensures the innovation is addressing the stated unmet need. If they meet the score requirements for 2 and 3, they move on to stage 4. If they do not, they are again offered VizBiz.
- Viability: HEI reviews the maturity of the business functions, determines the target’s long-term viability, and produces a risk profile by using the Phundex-For-Health Score Card. If they do, the target is moved to stage 5; if they do not, the target is given their Scorecard and asked to improve their business and come back when their mentor or professional advisor (lawyer or accountant, angel, or VC, etc.) says they have corrected the shortcomings.
- Valuation: HEI determines the current economic value of the venture. A professional valuator carries out a complete valuation. If they disagree with the valuation, we sever the relationship. If they do accept, they go on to stage six.
- Venture: HEI structures a contract and business plan and invests in the target that becomes the HEI investee. Through this process, we contact potential investors that may wish to become investors in the investee at this stage or the eighth stage.
- Vigilance: HEI works with the company and oversees the process of the business and ensures that the investee adheres to the contract and business plan. HEI puts in place a directorship team comprised of HEI sector knowledge experts. During this time, HEI continues to look for investors for the eighth stage.
- Vest or Divest: at this stage, HEI brings in the second round of investors to sell HEI’s shares and divest of their holdings or vest part of their shares and remain part of the investee as an investor.
The Formal Offering
Our formal offering is prepared through our regulated funding partners, that operate under the Environs Innovate network. The Environs network comprises corporate finance consultants, and exempt market dealers fully licensed in Canada and operate under an umbrella relationship in the UK and Jersey in the Channel Islands. In addition, our fully regulated Canadian exempt market dealer can work with regulated bodies in other jurisdictions. The formal offering is of prospectus quality. A prospectus is a legal document that provides essential details about the investment and is legally required when making a public offering. The offering uses a standardized process to give both the investee and our investor network a risk profile. It provides investors with all the information they need to make informed decisions.