Blue Ocean Ventures — How we select companies for investment
From a distance it looks like nothing more than a simple bracelet, or perhaps some kind of smart watch. Take a closer look, however, and it becomes clear that Ava is a device that genuinely has the potential to transform the experience of conception and pregnancy for a whole generation of women. Underpinned by data analytics, Ava monitors the monthly menstrual cycle, tracking the physiological indicators that act as markers for hormonal activity — thus providing vital information about fertility and also general health and well being. After conception, Ava goes on to monitor the health of wearer throughout the pregnancy.
Ava (www.avawomen.com) — currently part of the BlueOcean Ventures II fund portfolio — represents just one example of how medtech (medical technology) is changing the world for the better in terms of health outcomes.

Rising Expectations
We live in an age where, in most parts of the world, people are living longer and leading a healthier life. But what we are also seeing is not only increased demand for healthcare but also rising expectations. Against this backdrop, the medtech sector is developing and delivering a broad range of technologies — including diagnostic tools, smart implants and robotic care assistants — that are helping health systems to meet those expectations.
BlueOcean Ventures was established to invest in medtech and life science — with a particular focus on the Swiss industry — and as such we are helping companies bring their products to the market. These are businesses that have set out to solve big problems, with solutions that can be scaled internationally. BlueOcean Ventures provides investors with an opportunity to gain exposure to this important and growing market.
Investment Criteria
Switzerland is a hotbed of medtech activity, with around 1’400 companies operating, many of them startups and early stage ventures. So how do we select our investments?
BlueOcean Ventures focuses on early stage companies. In practice that means we initially invest at the seed stage through to a ‘Series A’ financing round. In most cases we will be investing in ventures, prior to them achieving the CE mark. Typically we will allocate between US$ 1m and 3m for each business, but the total sum will not necessarily be invested in a single tranche. Acting as the lead investor in syndicated deals, BlueOcean Ventures is looking for deals where it can be an active player, providing coaching and mentoring and, usually, often taking a seat on the board of directors.
But the key to our investment strategy and the value we offer to our investors lies in our painstaking approach to identifying and selecting opportunities.
In a typical year, we will look at over 150 potential deals. Generally speaking, prospects are identified through our network of contacts. Our team is well connected within the Swiss and European medtech and life sciences ecosystem. We have close relationships with universities, polytechnics, incubators and innovation parks. These contacts play a crucial role in helping us to identify quality investment opportunities.
The Filtering Process
The filtering process is comprehensive. It begins with a review of the potential deal flow. After an initial assessment, perhaps 80 of the 150 companies go through to a screening process. This is followed by a due diligence in which we set out to validate the science behind a company’s offer, prepare a market forecast and assess the exit possibilities and timescale. Typically 10 to 20 companies a year will undergo a due diligence.
Those that are selected are assessed by the BlueOcean investment committee. A unanimous decision is required before the terms of any deal are drawn up. The next stage involves negotiations with the start up or early stage business and we expect to close and invest in 2–4 deals every year.
As illustrated by the businesses already in the BlueOcean Ventures II portfolio, we invest in a broad range of technologies. For instance Abionic (www.abionic.com) specializes in allergy diagnostics while Rheon Medical offers the world’s first adjustable glaucoma drainage device.
The common factor is the potential of the businesses — aided by active involvement on the part of the BlueOcean team — to accrue value as measured by a rising ‘expected share price’ as the businesses in question pass key development milestones, such as securing the required CE mark. Overall, the value of the portfolio of BlueOcean Ventures II (currently 5 companies) has increased by 48% since its first investment in Q3/2016 (in Ava) as reported by the last audited financials of the fund (December 31, 2017).
BlueOcean Ventures is providing an opportunity to invest in Swiss and European medtech through a blockchain-driven tokenized fund that is opening VC Investment to a wider community.
To find out more, please visit the ICO website: www.blueocean.swiss

