This new set of U.S. laws is allowing people to pool their money together online and invest in promising start-ups.
It’s a concept called “crowdfunding."
Initially, the websites that facilitated crowdfunding focused on technology start-ups.
Then, sites started to emerge that offered you more specialized investment opportunities – from Food & Beverage products to Real Estate.
And now, a site has decided to specialize in one of the most profitable sectors on the globe…
A Natural for Specialization
The sector I’m referring to is the $2.5 trillion market for healthcare, bio-tech and life sciences.
This market has been on a run lately. In the past 12 months alone, for example, the NASDAQ Biotechnology Index (NBI) has risen by more than 46%.
And given major trends like Obamacare and a population of aging Baby Boomers, more growth is likely to be on the way.
But investing in this sector is complex, especially when you’re investing in early-stage companies.
To succeed, you need someone looking out for you – someone who has an understanding of such areas as:
- The latest medical research
- The FDA approval process
- And government healthcare policy
But today, thanks to The JOBS Act – and thanks to a specialized crowdfunding website – this dilemma has been solved. Let me explain...
Poliwogg
Poliwogg is a crowdfunding site specializing in early-stage healthcare and bio-tech.
Its CEO, Gregory Simon, has a wealth of knowledge in this sector covering everything from healthcare policy to Research & Development (“R&D”).
Simon’s been a senior executive at Pfizer, the pharmaceutical company, as well as a healthcare entrepreneur.
And as a member of Congress and the White House, Simon has experience overseeing healthcare initiatives at the National Institutes of Health, the National Cancer Institute, and the FDA.
Normally, a professional like Simon would get recruited by a hedge fund or venture fund to help them find and evaluate new deals.
But Simon’s decided to go to work for YOU instead...
Investment Opportunities For ALL
Poliwogg connects private, early-stage companies with investors like you.
For example, if you register for Poliwogg, you’ll see a bio-tech company called GLG Pharma that’s raising capital. With its STAT3-focused therapeutic solution, GLG is on the cutting edge of cancer therapy.
At the moment, however, the U.S. government only allows “accredited” investors to invest in these private deals. (An accredited investor has at least $1 million net worth or $200k in salary.)
A few months from now, it’s expected that non-accredited investors will be able to invest in private deals, too – but that doesn’t help you today.
We realize that this is disappointing to many of you, and so does Simon.
Which is why Poliwogg recently launched an investment option for all investors...
Early-Stage Bio-tech ETF
It’s an exchange-traded fund called the ALPS Medical Breakthroughs ETF (NYSE Arca: SBIO).
Since it trades on a stock exchange, any investor with a brokerage account can invest in it.
It’s the first ETF to focus specifically on bio-tech and pharmaceutical companies that are at the R&D stage.
The Fund tracks the performance of Poliwogg’s Medical Breakthroughs Index SM. The index consists of 75 small to mid-cap pharma and bio-tech stocks that are listed on U.S. stock exchanges, and have at least one drug in Phase II or Phase III U.S. FDA clinical trials.
Compared to their peers, these 75 companies have a greater focus on R&D. In fact, they spend 29% more on R&D than firms in the NASDAQ Biotechnology Index.
Why is that so important?
Because as a 2013 report from Goldman Sachs revealed ("The Search for Creative Destruction”), companies with strong R&D spending also enjoy the best stock returns.
Simply put, with the ALPS Medical Breakthroughs ETF, investors get exposure to a diversified set of early-stage bio-tech companies that have already made progress.
To us, that sounds like a smart investment.
Hear From Poliwogg’s CEO
Poliwogg’s management team has strong sector knowledge and deep connections to government and industry.
This gives it an advantage in identifying and vetting healthcare start-ups, and in understanding the market potential of a new drug or medical device.
Equally as important, Poliwogg’s sharp focus means that – when the time is right – it’ll know where to go to secure a key partnership or additional funding on behalf of a start-up, or how to help it create a merger or sale.
We’re impressed with Greg Simon – and we were excited when he recently agreed to sit down with us for an exclusive interview.
In the interview, Greg reveals how to profit from soaring healthcare costs, and why now is such an opportune time to be a bio-tech investor.
We hope you enjoy the interview.
You can listen to the interview here:
Please note: Crowdability has no financial relationship with Poliwogg, SBIO, or Greg Simon. We’re an independent provider of education, information and research on start-ups and alternative investments.
Best Regards,
Founder
Crowdability.com