NCN IV Spring 2009 Investor Meeting
April 20-21, 2009
Grand Hyatt, New York City, NY

With New York the epicenter of one of the major shock waves emanating from the global financial meltdown of 2008, it may have been an odd place to convene NCN IV. But most investors in the nutrition industry and health & wellness companies remain undaunted, as evidenced by the packed room of 120+ to review the presentations of the 21 companies selected to pitch their business plans at Nutrition Capital Network’s Spring 2009 Investor Meeting at the Grand Hyatt in New York City.

With debt financing and credit options still diminished, more nutrition and natural product businesses are seeking equity investors. NCN’s selection committee reviewed 94 companies and their business plans in the months leading up to NCN IV, and the 21 presenters were representative of fairly broad swathe of companies. Presenting firms included four ingredient companies (herbs, proteins, novel compounds, antioxidants and polyunsaturated fatty acids), a diagnostic company, a lifestyle & sports nutrition company, two baby product companies, an organic and non-GMO certification and testing company, an aromatherapy company and a cognitive supplement company, in addition to several high-growth branded food & beverage companies (baked goods, snacks, dairy alternatives, smoothies, functional juice, packaged fruit and tea).

“This was the best group ever,” commented a member of NCN’s selection committee. “It’s gets harder and harder to turn presenters away… but this is indicative of the improving quality and sophistication of the entrepreneurs and growth companies in the nutrition industry.”

In terms of scale, the largest company had over $35 million in revenues; with the majority in the $3-10 million sales range last year. Also presenting were 5 earlier stage companies with either unique intellectual property or a unique value proposition well differentiated from the many growing products in the nutrition industry.

Nutrition Capital Network welcomed two new Sponsors and seven new Cornerstone Investors to the NCN IV Investor Meeting. Goodwin Procter LLC and Volkman Group LLC joined long-time NCN sponsor Poms & Associates Insurance Brokers Inc. as professional services sponsors. Goodwin Procter’s Food and Dietary Supplement Practice focuses on the industry’s business needs and regulatory requirements. Volkman is an executive search firm dedicated to the health and wellness industry. Poms & Associates, an insurance specialist in the nutritional product and dietary supplement industry, has been with NCN since our inaugural meeting in San Francisco in October 2007. Investment Banking Partners for NCN IV included returing sponsors 6Pacific Partners and Partnership Capital Growth Advisors.

New Cornerstone Investors at NCN IV included Campbell Soup Company, Coca-Cola, DSM, General Mills, Martek, Tate & Lyle and TSG Consumer Partners, joining Nestle and Founder’s Circle members Sherbrooke Capital, Burrill & Co., Inventages and Pegasus Capital.

NCN continues to encourage investors to consider early stage companies with revenues smaller than their typical investment target. The 8-figure investment favored by established private equity firms in the nutrition and health & wellness industries are few and far between, and we are seeing increasing efforts to adapt to the realities of the market. NCN continues to commit itself to bridging the gap between the larger-scale aspirations of the industry’s core nutrition industry investors and the multitude of early-stage companies looking for early rounds or Series A financing. Connecting companies with local angel groups, qualified debt sources and supporting their friends & family rounds is part of the function of NCN between its public meetings. NCN IV also had seven or eight angel investors in attendance and three or four representing family funds.

NCN IV opened on Monday evening April 20 with cocktails and dinner and Tuesday morning began early with a networking breakfast. This was followed by the line-up of 10-minute company presentations to a full auditorium of 120+ people, including presenters and sponsors. After lunch companies and investors met in breakout sessions for one-on-one meetings until 5.30 pm. An informal gathering then convened in the bar downstairs.

Feedback From NCN IV

What Investors Valued Most about NCN IV

“Meeting a lot of small innovative companies all in one room…. The instant perspective of seeing them as a group… a great opportunity for potential investors.”

“We look at companies all the time, but you still manage to come up with 3-4 legitimate opportunities we have never seen before…. I’ll definitely be back.”

“It was great to see the variety of companies and how they presented themselves. Great networking.”

“Gauging the current investment and marketplace situation…. and the networking with companies and other investors.”

“Presentations were wonderful, quick and useful.”

What Presenters Valued Most about NCN IV

“The contact to potential strategic partners. We’ve pitched to investors before, but your group of strategic investors was new to us.”

“For us, NCN 2009 provided a "forcing function" for us to prepare ourselves to start the equity raising process. It was very helpful to talk with investors and presenters to compare ideas.”

“Exposure to additional potential investors.”

“A forum to connect with many investors at one time.”

“The level of exposure for a company our size was very good.”

“The program and participants were outstanding. The entrepreneurial spirit is excellent.”

“Networking with many industry people, feedback from investors on what needs to be changed to achieve financing, and the experience in a friendly setting to better my presentation skills.”