Identifying Opportunities - Mitigating Risk
Venture capital may offer the highest risk and, ultimately, the highest returns of any asset class. The goal of the Saratoga investment team is to keep both of these aspects in balance. To that end, we work to diversify a portfolio by company, development stage, and technology.

Team Expertise
Prospective companies must fit into the scientific, clinical, or market expertise of the Fund Managers and advisors. Operating within our own purview and intellectual capital not only allows us to make informed decisions, but also gives us access to the opinions of industry colleagues and market leaders.

Relationship with and Quality of the Management Team
The Fund Managers will often have a direct relationship to a company's management. This may entail serving on a board of directors, scientific advisory committee, business advisory board, or taking an active role in creating a firm's infrastructure. In evaluating a potential portfolio company, the Fund intends to look for an experienced management team with significant operating and leadership experience in its product or service area. The Fund also plans to look for a track record of growth, proven technical know-how, plus a vision for the company and its role in the industry, through the startup process and beyond.

Prominent Co-investors
The Fund expects to provide unique access and the ability to enter deals alongside the top tier venture capital firms and strategic co-investors in the medical-device sector. Prior Saratoga co-investors have included Venrock Associates, Pequot Capital, U.S. Venture Partners, Latteral Ventures, Morganthaler Ventures, Guidant, Boston Scientific, Johnson & Johnson Development Corporation, St. Jude Medical, Alex Brown, De Novo Ventures, Delphi Ventures and The Sprout Group.

Foreseeable Development and Commercialization Path
To qualify for investment by the Fund, a company must demonstrate that its technology could have a meaningful clinical impact and the ability to be a market leader. The Fund will also look for the demonstration of a viable plan to guide the company along the following four major goals:

Attractive Exit Strategy with Opportunity for Significant Return On Capital
A company's technology should demonstrate a logical fit with a potential acquirer's product portfolio. The circle of past and potential acquirers includes Johnson & Johnson, Boston Scientific, Guidant, Abbott Laboratories, Medtronic, Smith and Nephew, St. Jude Medical, and Edward's Life Sciences. If the market timing permits, an initial public offering (IPO) is also a consideration, but from past experience, this is the exception rather than the rule. The Fund will focus on opportunities that the Fund Managers believe can return a minimum of two to three times the investment within three to five years.