Vine Brook Capital
To: Hardina Smythe
From: FT35312
Subject: Vine Brook Capital
Date: November 17th 2012
Summary:
Vine Brooks Capital closed in April 2009 with $350 Million of investor commitments and though the last decade had been one filled with highs and lows, the firm realizes that they need to play a bigger game in health care market. However firms were generally taking a longer and more cautious approach with the idea that they want to provide more than just initial seed funding but also provide enough to get the product from the earliest stages to the market. (Rhodes-Kroff, leamon, Strope, 2011)
The Investment Choices:
(1) Always Covered Software: A software system for hospitals to manage an auction based registry registry for nurse and other clinical staff.
Key Features, Pros and Cons:
Always covered Software (ACS) is already moving in a positive direction. It has already been implemented in 4 mid-sized hospitals and the reviews and feedback has been very positive. They already have and interest from top-tier customers and they also have a clear competitive advantage of being first to the market. There were also high switching costs and a clear exit strategy with a possibility of being acquired by a large health care software provider. Also the CEO of the company had a depth of experience. However the competitive advantage may not be sustainable. The software could easily be replicated. It would be difficult to generate sales immediately as it generally took large hospitals and unions about a year to implement functional and technical changes. Attaining approvals would be an arduous task starting from senior management to the IT departments. (Rhodes-Kroff, leamon, Strope, 2011)
Hypotheses on Value Propositions:
Points of Parity: Always covered software would have a huge advantage in this area as they are they first to the market. However the issue is that the software would be easy to replicate and could be replicated by
From: FT35312
Subject: Vine Brook Capital
Date: November 17th 2012
Summary:
Vine Brooks Capital closed in April 2009 with $350 Million of investor commitments and though the last decade had been one filled with highs and lows, the firm realizes that they need to play a bigger game in health care market. However firms were generally taking a longer and more cautious approach with the idea that they want to provide more than just initial seed funding but also provide enough to get the product from the earliest stages to the market. (Rhodes-Kroff, leamon, Strope, 2011)
The Investment Choices:
(1) Always Covered Software: A software system for hospitals to manage an auction based registry registry for nurse and other clinical staff.
Key Features, Pros and Cons:
Always covered Software (ACS) is already moving in a positive direction. It has already been implemented in 4 mid-sized hospitals and the reviews and feedback has been very positive. They already have and interest from top-tier customers and they also have a clear competitive advantage of being first to the market. There were also high switching costs and a clear exit strategy with a possibility of being acquired by a large health care software provider. Also the CEO of the company had a depth of experience. However the competitive advantage may not be sustainable. The software could easily be replicated. It would be difficult to generate sales immediately as it generally took large hospitals and unions about a year to implement functional and technical changes. Attaining approvals would be an arduous task starting from senior management to the IT departments. (Rhodes-Kroff, leamon, Strope, 2011)
Hypotheses on Value Propositions:
Points of Parity: Always covered software would have a huge advantage in this area as they are they first to the market. However the issue is that the software would be easy to replicate and could be replicated by