For the first time ever, our Infinity subscribers can invest in promising startup companies with their own potential for “hypergrowth.”
Regular Daily readers know we’re thrilled to be able to offer our best subscribers a new resource we call the DealBook… only possible due to a recent change in federal law.
I asked Tom if I could “pull back the curtain” a bit on one of our first DealBook private placements. Deal #1 is a chance to invest in a biotech startup. Tom’s friend and former colleague at Stansberry Research is the firm’s CEO. We asked him to tell us about the specifics of this investment opportunity…
Our company was founded in 2011 to pursue the simple idea that an unbiased approach to medical diagnostics using signatures can be clinically and scientifically useful. We are predominantly focused in the areas of oncology, autoimmune disorders, and rare diseases.
That’s a fancy way of saying we have a chip that can tell when the chemical makeup of liquids (blood, urine, saliva, or any other solution) has changed.
By using the latest in machine learning, the chip will use biological “signatures” to tell us important diagnostic information. Information that can help people diagnose themselves for numerous diseases in an easy, fast, and cost-effective manner at home or local clinics.
Here’s an example:
You collect urine in a cup and place the specialized glass slide in the cup. It’s heated to cause changes in color and then you scan or photograph it with your smartphone. After that, all you have to do is upload the image to the app on your phone.
Within seconds you’ll receive the diagnostic information back.
The applications for this type of technology are endless. For example, you could find out things like:
• Do I have bladder cancer… or various other types of cancers?
• Do I have an infection?
• Am I septic or simply coming down with a cold?
• Is that baby formula contaminated with something?
Can you see the power of having this near-instant way to diagnose molecular changes in fluids?
Here are some other important details about the deal…
Our company is proud to have established strategic collaborations with renowned companies and institutions.
Peter Thiel is an investor. If you don’t know, Peter founded PayPal with Tesla and SpaceX founder Elon Musk. He was the first outside investor in Facebook. He manages a venture capital fund with $2 billion in assets. Peter has a foundation that funds truly innovative research. We’re honored to have earned his support.
Investors in our business will invest in a three-year convertible note with 4% simple interest accruing annually. The convertible note gives the holder a priority claim on all company assets and intellectual property.
More importantly, convertible note holders have the ability to convert into stock at a 20% discount in the next equity financing, or at a $5 million valuation cap if a buyout or initial public offering (IPO) happens.
The deal, while complicated on the surface, gives investors maximum protection while ensuring their participation in 100% of the upside.
Using the $5 million valuation cap, your $100,000 investment equals 2.24% of the company. If it receives a buyout offer of $100 million or IPO at a similar valuation, your $100,000 investment will be worth $2,240,000.
Now, investment in the company above is limited to accredited investors. But not all of the investments offered in the DealBook will have this stipulation.