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A 2006 national survey of angel investor groups actively investing in private companies revealed that 66% of their members do not actively invest because of their lack of knowledge of the process, not because the opportunity was considered too risky. When I heard this statistic and

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

called the firm conducting the survey to confirm, I couldn’t believe that was the primary reason aggressive sophisticated investors didn’t invest in private companies. So many exciting emerging growth companies struggle to find growth capital from angel investors. On average, on

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ly 23% of the companies that qualify to be considered by angel investor groups actually receive investment. Although, there are many factors that drive this low percentage such as valuation of the company, structure of the investment offering, and validity of the business model, th

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

s study revealed that the biggest reason an investor doesn’t invest is completely outside of the control of the entrepreneur. The potential investors simply are uncomfortable with the process of private equity investment and their desire to participate does not supersede their fear

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

of uncertainty.

Private Equity investing is a wealth creation strategy used by sophisticated millionaires. First championed by legendary aristocrats JP Morgan and J. Paul Getty, millionaires interested in wealth creation and not just wealth preservation, understand that by buying a

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

companies’ stock at wholesale before the company goes public and then selling those stocks at retail prices produces the greatest return on investment. A $15,000 investment in Home Depot or Microsoft before they went public could be worth between $5,000,000 to $10,000,000 today.

I

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

first became aware of the need for millionaires to learn about the private equity investing process when a few wealth managers and investors came to me seeking information on how to be an angel investor. I couldn’t believe there wasn’t information readily available. Yes, there

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

were many books at the library or book store regarding private equity investing. Most are oriented toward the entrepreneur or read like a text book. I realized that very wealthy people don’t want to spend hours and hours reading theory on angel investing when they could be playin

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

g golf or spending time with their family. They want to learn how to take their experiences and apply that to private equity investing. Affluent people invest in private companies to make more money, of course, but also for the gratifying feeling of being able to point to a succe

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

sful company and to be able to say they were a part of that success. Entrepreneurs are visionaries and angel investors are entrepreneurs that have the capacity to catch another entrepreneur’s vision and the generous nature to impart their experience and wealth to repeat their succe

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ss in another entrepreneurial endeavor.

I found from talking to many investors that many of them learned about investing by doing or by being mentored by others. Unfortunately, during the dot.com bomb period, this translated into learning by losing. For investors today, that ju

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

st isn’t acceptable. Affluent people who want to invest in early stage companies want a way to learn about angel investing the same way they might learn about investing in real estate or the stock market. They want books that are comprehensive, yet easy to digest and apply. T

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ey want to be able to attend seminars and workshops. They want access to the specific information they need to fill a gap in their experience and knowledge as it relates specifically to the art and science of angel investing. They want to be part of a group with other investors th

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

at is informal so it is flexible, yet structured so they have planned times to meet and review and consider opportunities. They want to have access to a team to help them perform due diligence on an opportunity. Private equity investing is new for many successful men and women wh

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

aspire to take a portion of their wealth and put it at risk to get a greater reward than what they can get through traditional investments.

The Network of Business Angels & Investors (NBA&I) offers an environment for those new to the idea of angel investing to come into a community

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

of experienced private equity investors to share their experience and to learn how to apply their experience in traditional investing and real estate investing to private equity investing. NBA&I offers its members and guests access to e-books and workshops on topics pertinent to t

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

e world of angel investing.

Angel investors are a critical source of capital for early stage companies to go from start up to bankable or VC-able. Without a thriving angel investor community to bring their capital and experience to the aid of fledgling early stage companies, our e

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

conomy will suffer because there won’t be small businesses to grow into big businesses. According to the same research report, angel investors invested $23.1 billion in 2005 and created 198,000 jobs. A total of 49,500 entrepreneurial ventures received funding in 2005, a modest 3.

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

% increase over 2004. The market is on an upswing and our economic recover can be even stronger with more investment in free enterprise and by helping wealthy investors to get comfortable with the process of private equity investing so that the number of investors that have a desir

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

e to invest and do invest grows from 33% to greater than 50%. That would mean another $10B could be invested into early stage companies adding at least another 80,000 jobs to our economy. The long term impact for wealth creation, job creation and economic growth is immeasurable

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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