As the director of management based in Jakarta, the capital of Sovereign, Luke Roush tells the progress of the investment business with Indonesia health care companies.
There are nearly 10,000 medical clinics and 2,500 hospitals across the largest archipelago in the world. While other emerging markets such as China and India have also focused on scalability changes in the health care sector in recent years, the fragmented geography of Indonesia, it is a .ly different animal . At least one thing is true in the eyes of Luke Roush, director of the Jakarta-based management in the US capital Sovereign, a more recent venture capital players zeroing nation in Indonesian health investments.
For those who are new to the investment game, a venture capital firm manages a fund supported by several investors and puts money in companies in exchange participation percentages. Although different companies specialize in different markets and vertical, each has its own unique strategy for financing and growth of its portfolio companies. Roush is an American expatriate, and believes that startups thing of the Indonesian health and entrepreneurs need most are not in cash, but rather better education and skills.
"There are more than a . of one million health workers in Indonesia, and this number will increase rapidly in the coming years," says Roush. "Our point view is that the first need in the Indonesian healthcare market is no equipment or facilities, but health workers trained rather well. The company that we are more excited locally medical Summit. "
medical Summit is a startup operating out of Tanah Abang, which aims to educate local health professionals about the latest best practices and the most updated techniques of care. the company pays special attention to the nursing sector in Indonesia, as it believes the group nearly 500,000 members plays the most important role as primary caregivers for local patients. medical Summit is also an international center authorized training for the American Heart Association.
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in 2014 capital of Sovereign has provided seed funding for an undisclosed amount for medical Summit to scale up its operation in Jakarta. According to Roush, Sovereign also made eight investments in the region of ' ASEAN since its market entry in 2013. Four of these investments were made in Indonesia, two were made in Singapore, and the other two occurred in the health of Hong Kong's ecosystem. Capital of the sovereign is to keep a relatively low profile at this point in time, as Roush did not disclose his other portfolios related to local health care. Site of the capital of the sovereign does not mention its portfolios or, as is often the case with other companies at risk.
"We also made some investments in medical device companies, one of which is focused on low-cost, point of care diagnostics for TB," Roush said without give names. He refers, "This company was also funded by the Clinton Health Access Initiative and the Gates Foundation. The other two devices companies are focused on pain management and treatment of intensive care. Both will be applicable in Indonesia. "
from the United States, the capital of the sovereign had to adjust to the complexity of often confusing market of Indonesia. In mid-2014, Roush told the media that his company was like the new kid on the block in the archipelago eager to learn about the market According to him, global portfolio of corporate Sovereign include everything from pre-revenue startups to enterprises over. US $ 200 million in revenue.
the range of typical investment in Indonesia in the capital of the sovereign is 500,000 million $ to US $ 3 per start. sovereign will often give a young half-company initial capital investment, then pour the follow-up funding on starting develops. Roush said that the capital of the sovereign prefer when companies at an early stage already have traction in the market, with revenues anywhere between $ 1 million and US $ 10 million per year, as opposed to a pre-revenue concepts "pure start."
Sovereign of two ways to invest. His early growth investments in Southeast Asia come from a fund of approximately US $ 15 million. But the interesting thing about being the Capital of a sovereign investor is that the fund also allows its members write checks in specific companies it manages, against only be allowed to feed the money in the fund unique. Roush claims the Sovereign offers this to her benefactors opportunities later stage in particular.
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In Indonesia, Roush said the mid investment in health is still small. "There are some big companies like Ancora [Indonesia Resources] are doing larger deals infrastructure, but very little activity in the business sector," he said. "I think the reason is that health is a specialized field and requires foreground that most companies do not have and are not interested in acquiring. It is also a space that is not as entrepreneurial activity, so treat the flow pipelines are not as robust. first it was a challenge to sovereign as well. "
current Fund investors are US and Australia, with a high-net worth individuals mixture and institutional players as well. Roush claims to focus on early stage equity Sovereign emerging markets is still a new concept for American investors. As such, he and his team in Jakarta began with smaller funds (US $ 15 million is considered low in the venture capital and private equity game) to show donors that the model is viable .
Based on feedback from the market, Roush believes future funds under umbrella of the sovereign are sure to include both Western and Asian investors. "We raise a second currently based on the market interest fund, and the fund will continue to give us the flexibility around our investment thesis and schedule," says the young main management.
Roush believes that the honorable work is in itself a good thing, but being involved in the field of health care also offers unique opportunities to "do well by doing good" and vice versa. He said the overall mission of the company is to treat the Indonesians who are sick and in need, and health care entrepreneurship is an effective way to do it. As such, the capital of Sovereign invited Indonesian entrepreneurs health contact.
"We were encouraged by the receptiveness and openness of the market to date," said Roush. "We are actively looking for early stage and middle stage companies where invest. "