GLOBAL DEAL SYNDICATION
HBS Alumni Angels syndicates selected deals across the full global membership of its 14 chapters. This enables selected deals from one chapter to reach a global network of accredited investor alumni. This is a unique benefit of being a member in a local HBS Alumni Angel chapter. Investment decisions are made and executed individually following a global webinar. Once investments are made, investors often assist companies in other areas as formal or informal advisers. For details on how the process works, please scroll down.
RECENT SYNDICATION CALL
GLOBAL SYNDICATED INVESTMENT PRESENTATION:
MERCATOR MEDSYSTEMS
Thursday, July 27, 2023 9am PT, 12pm ET, 5pm London, 6pm Continental Europe
Presenter: Trent Reutiman, CEO & Director of Mercator MedSystems
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Complimentary for HBS Angels Members
About this event:
On behalf of the South Florida chapter, we would like to share the following investment opportunity:
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Why Mercator?
Mercator has a proprietary platform Medical Device technology. The company has branded the system around Micro-infusion, a hyper-efficient way of delivering drug or biologics to diseased area of arteries or veins. This local treatment strategy enables precise targeting of the therapeutic and enables new applications for drugs that couldn’t be delivered orally or systemically due to toxicity and side effects to achieve local dose levels. The Co's current trials are focused on improving outcomes for Deep Vein Thrombosis (DVT) by Micro-infusion of an anti-inflammatory steroid. This segment of the Peripheral Vascular Market, Venous MedTech Devices, is consolidating quickly and has seen a number of acquisitions in the last 18 months.
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The Opportunity
Mechanical devices to restore blood flow in Peripheral Arterial Disease (PAD) and DVT have been in use for several decades, and yet there remain unmet needs for patients having these interventions. The delivery of therapeutic agents at the site of the re-vascularization (opening of the artery) is not new but has been limited to coating drugs on the surface of angioplasty balloons or stents. Prior to Mercator there has been no attempt to deliver local drug therapy during venous interventions because a meaningful dose of steroid cannot be delivered via a drug-coated balloon or stent. Post Thrombotic Syndrome (PTS) is a debilitating set of symptoms occurring in an unacceptable large percentage of patients despite having a DVT intervention to restore return blood flow in the deep veins of their legs.
The estimated incidence of approximately 860,000 DVT cases in the U.S. is roughly 40% iliofemoral, veins in the pelvic region, and 60% fem-pop, veins in the thigh and behind the knee. Local anti-inflammatory treatment of patients represents a $2.5B addressable market for Mercator’s Micro-Infusion technology in DVT interventions alone.
The Solution
Mercator’s method of delivering anti-inflammation drug aqueously is currently in clinical trial(s) in the U.S. The company has follow-up data, at 6 months, on the majority of the first 20 patients treated in one of its two DVT studies. The full 20-patient 6-month follow-up will read out in September. Mercator has Corporate Strategic interest in these results because Mercator is demonstrating that the local treatment of inflammation in DVT patients undergoing DVT re-vascularization looks to be decreasing a progression to PTS from 30-40% of the patients down to a single-digit percentage of patients in this target population.
The company is now enrolling 60 patients (30 treatment vs 30 control) in a randomized fashion to complete the initial study that could warrant the company being acquired in 2H of 2024.
Target Customers, Partners, and Acquirers
Patients with peripheral vascular diseases, physicians (Interventional Cardiologists, Radiologists, and Vascular Surgeons) that need additional tools to provide better care for their patients, hospitals, and outpatient treatment centers that are looking for improved procedural outcomes and procedural durability, and ultimately a Corporate Strategic that has a portfolio of devices for peripheral vascular interventions and the
direct sales force and global distribution to support robust commercial growth.
Business Model
Highly regulated Med-Tech devices can be sold at attractive prices and margins. Mercator has modeled a $3,000 asp for its Micro-Infusion device for DVT, with a margin approaching 75% on meaningful volume (more than $10M in sales). Sales can grow from an estimated $19M in the full first year of commercial viability to $200M in year 5 of a DVT commercialization. Market penetration modeling has been constructed from a bottoms-up approach and is realistic at 1.5% in full-year 1 to 15% in year 5.
Company valuation has been estimated by BTIG’s MedTech team, who has been engaged to assist in fundraising for the capital requirements to complete the 1st two DVT studies and garner follow-up [Q424]. BTIG estimates valuation, based on private and public comps and DCF modeling, to be in the range of $175M to $260M based on success from initial DVT clinical trials.
Current Funding Round (USD) & Funding History
Convertible Bridge Note - $1.25M open of $5M – close by Mid August (’23)
Interest Rate 15%, Conversion Discount 25%, Valuation Cap $45M, 12 Mo Term
Total Equity raised $62M
LUPII
MERCATOR MEDSYSTEMS
CEO & DIRECTOR
TRENT REUTIMAN
Mercator CEO Trent Reutiman has 28 years of commercial experience in the medical device field, including leadership positions in sales and marketing. Trent has significant expertise in commercializing products for minimally invasive interventional procedures. Prior to Mercator, Reutiman ran Global commercial efforts at Webster, TX-based IDEV Technologies, and Trent was part of the Executive Team that exited IDEV to Abbott Vascular for $310M.
Previous Syndication Call
GLOBAL SYNDICATED INVESTMENT PRESENTATION:
FUEGO
Thursday, July 13, 2023 9am PT, 12pm ET, 5pm London, 6pm Continental Europe
Presenter: Kevin Weschler, CEO & Founder of Fuego
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Complimentary for HBS Angels Members
About this event:
On behalf of the New York chapter, we would like to share the following investment opportunity:
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Summary
Fuego is a global, tech-enabled dance-inspired athleisure & lifestyle brand with a vision of becoming the Lululemon of the dance world. Fuego's line of patented sneakers are worn by dancers in 120 countries around the world. Our sole technology is engineered for dancing and spinning on any surface as well as day-to-day streetwear. Take Fuego dance sneakers from the street to the dance studio, or simply out dancing on a Friday night. The brand is endorsed by the world’s top dancers, having launched shoe collaborations with Jade Chynoweth, BDash, ATACA, and soon Fik-Shun (winner of the dance TV show "So You Think You Can Dance"). A massive whitespace exists in dance without a brand serving as the hero dance lifestyle brand in the $350B athleisure market.
fuegodance.com
Opportunity (Problem)
Dance has evolved and expanded over the years from the dance studio to viral TikTok dance challenges. Yet, the outdated brands serving the dance community are over 100 years old and dance shoes have remained the same during that time. Traditional dance shoes are inconvenient since they can’t be worn outdoors, while the styles are formal, outdated, and uncomfortable. Regular street shoes have too much traction for dancing which can lead to knee injuries over time. More importantly, there hasn’t been an iconic brand that dancers can get behind as a vehicle for identity and personal branding. A massive whitespace exists as the dance world needs a refresh, from both a product and branding perspective, and is ripe for disruption.
Solution/Technology
Fuego's patented sole technology has created a new category of dance footwear, manufactured using a specialized compound with dual pivot points embedded in areas of increased pressure distribution (ball of the foot and heel). This combination of features allows dancers to spin and groove on any surface with the perfect balance between slip and grip, while also being durable enough for day-to-day streetwear. This allows Fuego to be a brand at the intersection of dance and streetwear. The shoes are ultra lightweight and boast a shock-absorbing insole for high impact movements.
Fuego has released three collections (Low-top, High-top, and Split-sole). The Split-sole features a unique two-piece sole which enables the dancer to point and flex their foot. Fuego products are utilized by dancers across Hip-hop, Ballroom, Salsa, Dance fitness, Swing, Ballet, Jazz, and more.
IMPORTANT: Fuego was awarded the Best Dance Sneaker of 2023 by Women's Health.
The fusion of performance-based athletic gear with everyday casual wear is happening all around us, and now Fuego is bringing it to the dance world.
Market
Dance is bigger than yoga (67,000 dance studios in the U.S. vs. 47,000 yoga studios). Dance continues to become a part of mainstream culture, with new dance TV shows being released several times per year (including TV shows starring Jennifer Lopez and Shakira). There are 125M dancers globally. Athleisure, a market that Fuego can tap into as a lifestyle brand rooted in dance, is a $350B market.
Fuego has the potential to become the Lululemon of the dance world, transcending even beyond the most dedicated dancers. Dance is an aspirational item with a tight-knit and identifiable community, much like yoga, surf, skate, and many other lifestyle categories. For instance, Vans (skate brand) and Lululemon (yoga brand) have become lifestyle brands that transcended beyond their initial customer segments.
Business Model
The company primarily sells online, direct-to-consumer on Fuego's website but has been gaining steam in the wholesale channel, selling to boutique retail stores around the world.
The company's media-rich, influencer-led digital marketing strategy is proven to create demand and build brand. Collaborations with the world's top dancers elevate and set the brand apart. Visit the FuegoTV section on our website (tv.fuegodance.com) to watch dance videos, dance tutorials, product reviews, lifestyle content, and more.
Storage and fulfillment is outsourced to a third-party logistics provider which allows the business to scale seamlessly globally.
Management
The Fuego team (6 full-time employees) based in Miami, FL is led by Kevin Weschler, Founder & CEO. Kevin is a Latinx Wharton MBA with an Industrial Engineering, management consulting, and dance background. Prior to business school, Kevin spent time as a management consultant in Deloitte Consulting's Strategy & Operations practice. At Deloitte, Kevin strategized and executed mergers & acquisitions for Fortune 500 and Private Equity clients across the U.S., Europe, and Latin America.
Kevin's leadership team includes Gabriel Gomez, Director of Operations, who joined Fuego from L'Oréal where he was a Demand & Supply Planner for four years. Leah Lapic, Director of Marketing, is a dance instructor and marketing expert having previously founded her own marketing consultancy. Other roles on the team support Marketing and Customer Service. Board of Directors includes Bruce Kaminstein, founder of Casabella (acquired 2017) and Devin Grief, CEO of Montce Swim. Beth Kaplan advises the company on strategic initiatives and is a current Board Director for Crocs and Rent the Runway.
Basic Info
Industry: Footwear & Apparel
Investors
HBSAA NY, New York Angels, and many others.
LUPII
FUEGO
FOUNDER & CEO
KEVIN WESCHLER
Kevin Weschler is Founder & CEO of Fuego. Listed on Forbes Next 1000 list of rising entrepreneurs.
Kevin received his MBA from The Wharton School, University of Pennsylvania and a B.S. in Industrial & Systems Engineering from the University of Florida.
First-generation American born to Chilean parents, Kevin is trilingual (fluent in English, Spanish, and Portuguese) with a diverse cultural background that enables him to work fluidly across Fuego's global endeavors.
Management consulting background having worked in Deloitte Consulting's Strategy & Operations practice. At Deloitte, Kevin strategized and executed mergers & acquisitions for Fortune 500 and Private Equity clients across the U.S., Europe, and Latin America.
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HOW IT WORKS
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1. HOST CHAPTER
A company must meet a threshold of member investment in one of our HBS Alumni Angel Chapters listed here. The leadership of the host chapter nominates the company for global syndication and provides a local member contact to act as syndication lead and a company contact.
CRITERIA
Ideally, for global syndication a company should meet the following requirements:
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Local host chapter members committed to invest at least $50,000* and local chapter forwards deal to global for syndication;
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Company assures at least $50,000-100,000 investible capacity;
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Company provides at least 2 weeks for due diligence following the webinar, prior to requiring an investment decision;
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Minimum individual investment amount is set at $25,000 or less;
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Company agrees to a one-time admin fee of $1500.
The Global Syndication Committee selects the most suitable company candidates from the 15 participating HBSAA chapters and is aiming to host monthly webinars.
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*NY and other larger chapters may have a $100,000 min.