This is an excerpt from NRA Capital’s research report on The Trendlines Group Ltd. (SGX: 42T).
By Liu Jinshu
Incubator For Early Stage Companies
One of the more unique companies listed on our local exchange, The Trendlines Group (Trendlines) invest in early-stage companies. The group is based in Israel and acts as an incubator for early stage start-ups. It not only provides financial support, but also aids these companies with administrative, technological and business functions. The group’s portfolio companies are physically located in the its facilities, producing a collective entrepreneurial environment and culminating free flow of ideas and collaboration.
Hidden Gems In Its Portfolio
Currently, review of Trendlines’ portfolio yielded 11 high confidence portfolio companies and they have been found to have either prospective exits or high growth potential. Some of these companies are riding on broader trends that are not obvious at first. For instance, Leviticus Cardio is in a race to make the world’s first wireless left ventricular assist device (LVAD). In 2015 and 2016, many conventional LVAD makers had been acquired for billions of dollars, indicating that the price tag for Leviticus is likely to be steep.
Established Processes To Help Companies Succeed
Trendlines’ track record is impressive with success rate of more than 20 percent, which can be attributable to the group’s strong relationships with key opinion leaders and partnerships with established players in the industry. In turn, they provide valuable feedback to help Trendlines identify industry needs, select or form the right portfolio companies and rapidly commercialise them by leveraging on partners’ resources.
NRA Capital is the first independent equity research company licensed by the Monetary Authority of Singapore, offering independent institutional-quality equity research written for sophisticated investors.