These Health-Tech Deals Highlight a Big Private Investing Trend

Launched in February 2005, Google Maps is now used by more than 1 billion people every month. There isn’t another mapping service that even comes close to Google Maps’ dominance.

A close-up concept image of a tiny glass vial with a strand of DNA in it.

Source: Shutterstock

So how did it get there?

Saying that Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Google’s parent company, has some control of the internet would be a massive understatement. The company has been the leading search engine for almost two decades, making up 90% of all internet searches. Google literally decides where to direct internet users every time they look for something (a scary thing if you think about it).

Second to Google is Bing, with just 6% of search traffic. Google basically doesn’t have any competitors when it comes to search.

A chart showing the market share of search engines from 2010 to the present.

Of course, Google’s search algorithms are unbelievably good… but its suite of products and services are what really sets Google apart.

Some of its companies, like YouTube, stand alone as their own brands.

Most of the company’s tools, like Maps, however, are branded as Google products.

But don’t be fooled. That doesn’t mean Google built out the entire Maps platform.

Instead, it acquired smaller companies, like Waze, and then combined the technologies to make the Google Maps service so useful.

Since 2001, Alphabet has announced the acquisition of nearly 250 private companies. These acquired companies have been integrated across Google’s ecosystem to further build upon their dominance of the internet.

In fact, Alphabet acquired at least a dozen private companies just for Google Maps services.

See where I’m going here?

By looking at acquisition trends of major companies, we can not only look into the future of where trends are going, but also position ourselves as investors to be in the path of progress.

That’s exactly what we are going to do today. (Plus, I’m going to share a brand-new private investment opportunity, including a link to its crowdfunding page.)

But first, let’s take a look at what major tech companies are acquiring right now.

Big Tech Takes on Healthcare

Alphabet, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and other big tech companies are pushing their way into the world of healthcare.

While this has been happening over the past several years… it’s been accelerating recently.

The venture capital world has taken note. VC and angel investors have been pouring money into healthcare companies that are prime acquisition targets for big tech.

As CB Insights reports,

“With massive amounts of available data, drug discovery is a rapidly growing opportunity for digital solutions in pharma. Funding to AI drug discovery companies hit a record high in 2020, with nearly $1.3B invested. This record has already been shattered in 2021, with $2.6B raised to date.”

While artificial intelligence (AI) drug discovery may sound niche, it’s the bigger picture that is important to understand.

For example, you can now monitor heart rate, temperature, sleep patterns, and all kinds of health trends from your Apple Watch.

Google, which acquired Fitbit in January for $2.1 billion, sees the massive opportunity, too.

Rick Osterloh, Google’s senior vice president of Devices and Services, said this about the acquisition:

“Technology can change the way people manage their health and wellness, and that’s especially important these days. We’ll work closely to create new devices and services that help you enhance your knowledge, success, health and happiness.”

PillPack, which Amazon acquired in 2018 for $753 million, is another example of Big Tech making its way into healthcare. Amazon has made it easier for many to gain access to prescription drugs, while at the same time gaining an incredible database of market trends and behaviors.

Bottom line: Big Tech is laying the groundwork to become an integral part of our global healthcare system, and one of the biggest deals ever just happened this week…

Data Is the Future of Treatment

On Monday, Oracle (NYSE:ORCL) announced that it is acquiring health technology company Cerner for $28.3 billion cash. Cerner, which specializes in electronic health records (EHR) could become a tremendous asset for Oracle.

As reported by The Wall Street Journal:

“The entry of enterprise tech providers into the medical records space stands to accelerate the creation of a 360-degree view of the patient. Success depends on the ability to add tools that allow different electronic systems to talk to one other, bridging information that is hosted in the cloud or on corporate data centers…”

Oracle, the second-largest software company in the world, could soon be an extremely strategic partner for other tech companies. Consumer electronic companies, like Apple, could make their smart watches more than simple devices that show your heartrate.

Imagine if the device you wear on your wrist (or on your finger, like the Oura ring) could sense you were going to have a heart attack before the event even happened…

In preparation, you could be instructed to go to the nearest hospital where an entire cardiac team is waiting for you with all of your medical records at hand… prepared to treat a life-threatening event before it even happens.

This is where Big Tech is headed — and where they will continue to make private company acquisitions.

If you think Big Tech is integral to your life now, just wait until your life literally depends on them…

The Next Biotech Acquisition?

It’s not just Big Tech snapping up private healthcare companies. Big Pharma firms, of course, acquire small biotech startups.

Because of this, biotech startups — specifically those with defensible intellectual property (IP) — can turn into enormous wins for us as private investors.

And today, I want to introduce you to Sen-Jam Pharmaceutical.

Sen-Jam has an impressive IP portfolio. The Huntington, N.Y.-based company currently has 25 patents and patents pending for:

  • An oral Covid-19 therapeutic
  • An opioid withdrawal treatment
  • And an alcohol hangover preventive

Although those three conditions seem unrelated, they are all treatable with anti-inflammatory drugs — which is what Sen-Jam is focused on.

Earlier this month, Sen-Jam partnered with Duke University to begin clinical trials for its oral Covid-19 therapeutic treatment. Any success with this trial could be a game changer for the company (and that’s an understatement).

But I think Sen-Jam’s two other potential treatments could be much more lucrative…

I tell you why that’s true and offer all the details on how to invest in Sen-Jam in your Top 3 Private Investments for 2022 report, which I just updated to include this new deal.

I’ll update that report every time one of my highlighted private company deals expires — and as a member of Venture Capital Digest, you’ll be the first to know.

You can find all the details, including how to get involved, here.

On the date of publication, Cody Shirk did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

By focusing on megatrends that will shape the future, Cody Shirk uncovers generational wealth in the private investing space. To make sure you never miss Venture Capital Digest, click here to subscribe.

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