How do we analyze companies?
Our commitment is clear: whenever you invest in Capital Cell you will always invest in thoroughly screened and analyzed investment opportunities.
Out of every 100 projects we receive, only 3 manage to pass the technical, legal and financial analysis and end up being published on our platform.
OUR COMMITMENT TO INVESTORS
We work every day to minimize investment risk and enhance the benefits of our community of investors.
Investing in Capital Cell means investing in validated companies with the same conditions as professional investors.
All projects are reviewed in a process that includes business plan analysis, financial review, interviews with entrepreneurs and specific consultations with industry experts.
What do the companies we select have to offer?
- Ambitious team with sufficient scientific and business capacity.
- Scalable and high-growth business model
- Solid and complete business plan
- Uncovered or very uncompetitive market niche
- Promising and demonstrable initial results
- Adequate intellectual property protection
There are factors that are not so relevant in other sectors but are key in the biomedical sector:
Most biotech companies are based on developing a technology and selling it. Without adequate patents, no sale is possible.
How do we review the adequacy of patents?
We ensure that patents:
- cover any commercial aspects of the technology
- are in force for long enough to make money
- do not conflict with existing patents on other products
- REGULATORY STRATEGY
In the medical sector, nothing reaches the market without going through a very tough authorization process. Choosing the right type of certification is key, as getting it wrong and suffering a refusal can result in costs in the millions and delays of many years. That's why we make sure that regulatory experts advise us and review all projects.
- NEXT ROUND
The vast majority of these companies will not make it to market without further rounds of financing, and it is key to have properly planned when, where and with whom that round will be raised.
Before publishing a round, we check that the company raises interest among potential future investors; that is why we are in constant contact with specialized Venture Capital firms.
What does the experts' report include?
- verdict on technical feasibility
- rating on the degree of innovation of the project
- real potential to reach the market
- suitability of the scientific team
- competitor analysis
- real potential for return on investment
- business model assessment
- pre-money valuation of the company
From oncologists to economists, our network of experts includes the best analysts.
2000 EYES SEE MORE THAN TWO
A critical weakness can escape even the best analyst, but our network of experts is much more likely to detect it.
A community that exchanges opinions and information on the most innovative companies in the sector to be always up to date.
* Approximately one-third of the companies analyzed by the BioExpert Network The company is not approved by the experts and is finally rejected.
All the investment opportunities we publish on Capital Cell have a reference investor who has conducted its own analysis, its own Due Diligence and validated the price per share. This reinforces our confidence that the project and its team are capable of generating a return.
Some benchmark investors of companies we have published:
Before publishing an investment opportunity, our legal and financial team reviews and verifies the legal, tax and social security situation, as well as the legal and financial structure of the company.
This audit is based on the study of:
- the history of the financial statements
- the annual accounts deposited in the commercial registry
- the credit and liquidity situation
- financial statements: balance sheet and income statement
- cash flow analysis: cash in and cash out forecasts by month
- budget analysis: 4-year revenue and expenditure forecasts
- the membership record book
- the articles of association
- documentation evidencing intellectual and industrial property rights
- the proposed pre-money valuation
- peakfunding and runway: the company's cash requirements
View the complete list of financial documentation we reviewed
- Tax returns since the incorporation of the company (VAT, withholdings, intra-community operations, etc).
- Detail of withholdings, both for professionals and employees.
- Book of invoices issued and received.
- Contracts of the company with the personnel.
- Contracts of the partners and/or administrators or administration organizations (labor contracts).
- Document related to the liquidation of Social Security contributions since the incorporation of the company (TC).
- Last contribution of the partner and/or administrator or member of the administrative body.
- Payroll summaries and pay slips for the last six months.
- Profit and loss projection by months up to five years in the future.
- Profit and Loss projection by months up to five years in the future by business division, clearly indicating gross and operating margins.
- Cash Flow by months since inception of the company, up to a five-year projection.
- Monthly metrics obtained to date, and projected to five years, (by months).
- Sums and balances to the maximum number of digits per year, for the last 3 years, up to the most recent current date, (in excel format).
- Profit and loss at maximum number of digits per year, for the last 3 years, up to the most recent current date, (in excel format).
- Balance Sheet at maximum number of digits per year, for the last 3 years, up to the most recent current date, (in excel format).
- Journal by years, for the last 3 years, up to the most recent current date, (in excel format).
- Contracts of the company with its suppliers.
- Current and/or expired real estate rental contracts.
- Distribution, marketing, franchise, technical assistance, service, wholesale and retail, licensing or other contracts entered into by the company. Sales or distribution concession contracts.
- Copy of the insurance policies subscribed by the company.
- Contract of the different loans granted to the company or by the company, (debt loans).
- Organization chart of the company.
- Detail of fixed assets and amortization table (if applicable).
- Explanation of the method of invoicing customers.
- Bank statement of the existing accounts of the company since its incorporation, (in excel format).
- Details of other open contracts with financial institutions (loans, credit lines...).
- Are there any elements of the company that are pledged/delivered as collateral?
- Are the products subject to export controls?
- Are there any related party transactions? If so, is there support?
- If there are related party transactions, we need the corporate organization chart.
- Are there any open proceedings with AEAT or Social Security? Copy of the requirements and, if applicable, replies.
See the complete list of the legal documentation we reviewed.
1. Corporate matters:
1.1. Register book of partners, and updated address of each of the current partners.
1.2. Updated by-laws of the company.
1.3. Structure of the administrative body of the company (sole administrator, joint or joint administrators, or board of directors), and the identity of its members (name, surname, ID number, address).
1.4. Public deeds:
1.4.1. Deed of incorporation of the company, with proof of its registration in the Commercial Registry.
1.4.2. Deed recording the appointment of the administrative body.
1.4.3. Deeds stating:
(a) Last change of domicile.
(b) Last change of corporate name.
(c) Last increase or reduction of capital.
1.5. If there is a shareholders' agreement: copy of the agreement in its current version (original agreement plus any amendments that may exist).
1.6. Updated definitive CIF card of the company.
2. Compliance with legal obligations:
2.1. Certificate of being up to date in the fulfillment of tax obligations.
2.2. Certificate of being up to date in the obligations with the Social Security.
2.3. Letter signed by the company's labor lawyers, indicating whether there are any administrative or legal claims against the Company initiated by former or current employees of the company. If there are, including a brief description of the content and amount of the claim.
2.4. Letter signed by the Company's lawyers, indicating whether there are any legal claims against the Company by third parties. If any, including a brief description of the content and amount of the claim.
3. Intellectual and industrial property:
3.1. Documentation accrediting the registration of trademarks and distinctive signs that are registered in the name of the Company in the national, European and foreign trademark registries.
3.2. Documentation accrediting the registration of patents, industrial designs and/or utility models owned by the Company.
Prior to launching a round, all projects undergo an additional analysis phase by the Regulatory and Market Access team of Alira HealthThe Regulatory and Market Access team, an international consultancy that provides a suite of integrated services designed to help companies in the healthcare and life sciences sector.
What is included in the Alira Health report?
- verdict on the maturity level of the project
- rating on the level of regulation and market access
- challenge identification
- proposal of key actions to be carried out