The following case studies demonstrate a variety of investment and exit models all conceived and executed within the HighCape investment structure.
HighCape was first introduced to Wellinks in 2015 when the company was known as Convexity Scientific. The company was founded for the distinct purpose of commercializing an innovative portable nebulizer that was conceived and developed by the company founder, Dr. Ralph Finger. At the time HighCape found the product design very interesting, but the long-term business model was still evolving. During the ensuing four years our team kept in contact with the company, providing input and suggestions regarding business strategy which finally led to a HighCape investment in 2019.
The 2019 financing allowed for a recapitalization of the company and a significant change in strategic direction. In addition to helping reshape the Wellinks board of directors, the HighCape Partners rolled up their sleeves and got deeply involved in helping the company transition from a device manufacturing/marketing business into a leading digital health company with a specific focus in the area of respiratory health.
The HighCape team worked closely with senior management to forge the new business approach which has included a strategic acquisition, a company rebrand, in-licensing additional technologies and capabilities as well as helping recruit several senior leadership positions including the CEO and VP of Finance.
In less than 2 years, this company which was founded on a very innovative medical device is now poised to transform the field of remote patient management in respiratory health, by leveraging a fully integrated platform of devices, data collection and analysis capabilities, patient engagement and healthcare provider involvement. The capital and hands-on involvement of the HighCape team has helped catapult this company to a place of note in the digital health arena.
Cheetah Medical was the first HighCape Capital investment. In 2014, shortly after the close of fund I, HighCape invested in this highly innovative company commercializing a new, and novel, approach to non-invasive cardiac output and hemodynamic monitoring. At the time of the initial investment, the commercial results were not meeting expectations and existing investors believed change was needed.
As is typical, the HighCape team rolled up their sleeves and went to work. Over the next few years, our team was instrumental in helping reshape the leadership of the company, including both company management and the board of directors. HighCape also invested tremendous time and energy working with company leadership rethinking the entire commercial model from pricing to the sales organization to product development. These adjustments, combined with multiple rounds of capital investment, fundamentally changed the trajectory of the company. As the company continued to grow, HighCape strongly advocated for continued infusions of capital with the primary goal of driving topline revenue while also maintaining the dynamic research and development organization based in Tel Aviv, Israel.
In 2019, the company was acquired by Baxter International. Aside from the obvious acquisition of the innovative marketed products and associated revenue, Baxter also considered the Israeli based R&D organization a key component of the acquisition.
In September of 2020, HighCape Capital announced a $115M Initial Public Offering (IPO) of the fund’s first Special Purpose Acquisition Corporation (SPAC). The SPAC quickly garnered attention and interest based on the HighCape partners’ reputations as experienced investors and operators.
Just six months later, HighCape announced a definitive merger agreement with Quantum-Si (QSi). QSi invested more than seven years and $180M developing a ground-breaking platform technology poised to revolutionize the field of proteomic research and was preparing to commercialize the initial portfolio of products while continuing to develop and enhance the technology for future products and applications.
The HighCape team rapidly structured the transaction and efficiently completed diligence. The transaction included a $425M private investment in public equity (PIPE) financing, in addition to the HighCape SPAC cash of $115M. From negotiating the LOI to closing and announcing the merger agreement was less than 60 days, far quicker than typical transactions of this size and complexity.
From the beginning of the process the HighCape team quickly leveraged partner and advisor experience within the geonomics and Life Sciences tools markets. This content specific expertise allowed the HighCape team to provide significant insights on company messaging, investor relations, board composition, leadership development and capital requirements.