I'm always on the lookout for the next big thing, but the trouble with the San Francisco Bay Area is that everybody and his brother claims they can deliver it once you hand them a few million in startup cash. Startup investing is not for the faint of heart and requires thorough due diligence. I have only invested in one startup to date, but I believe I picked a huge winner.
In late 2006 I came across a remarkable startup: CVAC Systems of Temecula, California. The CVAC (pronounced "SEE-vack") acronym stands for Cyclic Variations in Altitude Conditioning. They have engineered a one-person pressure chamber that simulates a high-altitude physical training environment by exerting multiple pressure and temperature changes on the human body. The basic effect is to stimulate the body's production of red blood cells, producing the benefits of high-altitude physical training.
The basic description of this technology's potential effects piqued my curiosity, so I actually drove down to Temecula from SF in October 2006 to check it out for myself. CVAC's inventor, Carl Linton, put me through a 20-minute session in a prototype CVAC pod. Folks, all I can say is that after 20 minutes in that pod I felt like I could have run for ten miles.
I like several things about this company. The CVAC technology's potential applications in enhancing physical fitness and treating metabolic disorders (pending scientific confirmation) offers the possibility of multiple revenue sources once the devices are placed in rehab centers, clinics, fitness clubs, and anywhere else customers can access it.
The company recently released the results of a study by researchers at Stanford University that indicates the potential use of CVAC as a diabetes treatment. This ought to be jaw-dropping, given the size of the diabetes-afflicted population in the U.S.
I put some of my own money into this company in February 2007 because I was convinced that this company's technology will be as disruptive to the health care industry as the Palm Pilot (PALM) was to mobile communication devices. I have complete confidence in the ability of CEO Allen Ruszkowski and his team's entrepreneurial vigor.
In a side note, Johnson & Johnson's (JNJ) latest quarterly earnings held up very well. Why mention this here? Medical device companies are considered defensive plays in recessions, so device makers may perform well even if the U.S. economy continues to stall in the near future. This is a potential feather in CVAC's cap if they go IPO between now and 2011 or so, because reliable share price performance from comparable peers in their sector will make it easier to price their own shares.
I remain convinced that CVAC is a winner. If anybody else can show me a startup with similar potential for multiple revenue streams and monopolistic pricing power, I'm all ears.
Nota bene: Anthony J. Alfidi holds a small private stake in CVAC Systems Inc. This company is privately held and represents a high-risk opportunity typically limited to institutional investors and accredited investors as defined by the SEC.
In late 2006 I came across a remarkable startup: CVAC Systems of Temecula, California. The CVAC (pronounced "SEE-vack") acronym stands for Cyclic Variations in Altitude Conditioning. They have engineered a one-person pressure chamber that simulates a high-altitude physical training environment by exerting multiple pressure and temperature changes on the human body. The basic effect is to stimulate the body's production of red blood cells, producing the benefits of high-altitude physical training.
The basic description of this technology's potential effects piqued my curiosity, so I actually drove down to Temecula from SF in October 2006 to check it out for myself. CVAC's inventor, Carl Linton, put me through a 20-minute session in a prototype CVAC pod. Folks, all I can say is that after 20 minutes in that pod I felt like I could have run for ten miles.
I like several things about this company. The CVAC technology's potential applications in enhancing physical fitness and treating metabolic disorders (pending scientific confirmation) offers the possibility of multiple revenue sources once the devices are placed in rehab centers, clinics, fitness clubs, and anywhere else customers can access it.
The company recently released the results of a study by researchers at Stanford University that indicates the potential use of CVAC as a diabetes treatment. This ought to be jaw-dropping, given the size of the diabetes-afflicted population in the U.S.
I put some of my own money into this company in February 2007 because I was convinced that this company's technology will be as disruptive to the health care industry as the Palm Pilot (PALM) was to mobile communication devices. I have complete confidence in the ability of CEO Allen Ruszkowski and his team's entrepreneurial vigor.
In a side note, Johnson & Johnson's (JNJ) latest quarterly earnings held up very well. Why mention this here? Medical device companies are considered defensive plays in recessions, so device makers may perform well even if the U.S. economy continues to stall in the near future. This is a potential feather in CVAC's cap if they go IPO between now and 2011 or so, because reliable share price performance from comparable peers in their sector will make it easier to price their own shares.
I remain convinced that CVAC is a winner. If anybody else can show me a startup with similar potential for multiple revenue streams and monopolistic pricing power, I'm all ears.
Nota bene: Anthony J. Alfidi holds a small private stake in CVAC Systems Inc. This company is privately held and represents a high-risk opportunity typically limited to institutional investors and accredited investors as defined by the SEC.
