Janssen Partners is an investment banking firm dedicated to building successful growth-oriented companies while guiding investors to superior financial returns. Pulse 2.0 interviewed Janssen Partners director Peter K. Janssen to learn more about the firm.
Peter Janssen’s Background
Janssen is a second-generation venture capitalist with the goal of funding companies for the betterment of mankind. And Janssen said:
“This has given me exposure to companies and management teams in every single industry. At a young age I was able to read balance sheets and accurately determine how well a specific management team would do.”
Evolution Of Janssen Partners’ Thesis
How has Janssen Partners’ thesis evolved over time? Janssen noted:
“We created a formula that I call public venture capital, which is investing privately and then taking the company public thereafter creating liquidity for investors while helping the company to access capital markets. Janssen Partners is known for some of the biggest biotech companies in the 80s: Opko health Ticker: (OPKO) was one.”
“Our firm’s investment thesis has evolved over time in response to several factors. At its core, Janssen Partners has always been committed to funding companies that aim to make a positive impact on society, but the specific sectors and strategies have adapted to market dynamics and emerging opportunities. Here’s how our thesis has evolved:
Diversification of Sectors: We initially focused primarily on healthcare and life sciences. However, as technology and innovation have advanced, we’ve broadened our scope to include AI, blockchain, renewable energy, and other cutting-edge sectors. This diversification reflects our belief in the interconnectedness of these fields in addressing global challenges.
Technology Integration: Our early investments were largely in traditional healthcare and pharmaceutical companies. As the importance of technology in healthcare and other sectors became evident, we adapted by investing in companies that leverage AI and other technologies to revolutionize their industries.
Impact-Driven Approach: Our commitment to the betterment of mankind has remained steadfast. We’ve increasingly emphasized the importance of measurable, positive impact in the companies we support. We’ve implemented more rigorous impact assessment criteria to ensure alignment with our mission.
Global Perspective: In response to the increasing globalization of business, we’ve expanded our investment focus beyond local markets. We actively seek opportunities with companies that have a global reach and the potential to address challenges on a worldwide scale.
Evolving Trends: The nature of innovation is ever-changing. Our thesis has evolved to adapt to emerging trends, such as the rapid development of renewable energy solutions and the transformative potential of blockchain technology.
Sustainability and Ethical Considerations: We’ve incorporated sustainability and ethical considerations into our investment criteria. Companies we support must demonstrate a commitment to environmental responsibility and ethical business practices.
Risk Mitigation: While pursuing high-impact investments, we’ve refined our risk management strategies to ensure the stability of our portfolio. We understand that successful impact investing requires a balance between risk and reward.”
Favorite Memory
What has been Janssen’s favorite memory working for the firm so far? Janssen reflected:
“Being able to choose which companies we invest in. I identified an early AI tech company called Mohawk, which later changed its name to Aterian, and was able to see the stock go to its true value, going from $3 to $42 per share – which validated our thesis.”
Significant Milestones
What have been some of the firm’s most significant milestones? Janssen cited:
“Some of our firm’s most significant milestones have occurred when others gave up, and we found great companies at depressed prices. Through hard work, dedication, and close collaboration with management teams, as well as leveraging our strategic relationships, we were able to bring these companies into the investor’s zeitgeist. This, in turn, created above-average returns for both our shareholders and the portfolio companies we supported.”
“These moments represent some of the proudest achievements for Janssen Partners. They exemplified our ability to identify hidden gems and nurture them to success and deliver results for stakeholders involved.”
Challenges Faced
Has Janssen faced any specific bottlenecks in your sector of work recently? Janssen acknowledged:
“Fortunately, we have not faced any significant bottlenecks in our sector of work recently. Thanks to our decades-long reputation and the strong relationships we’ve built within the industry, we’ve been able to consistently identify, and support companies dedicated to the betterment of mankind across various sectors. Our adaptability and focus which includes healthcare, life sciences, AI, blockchain, and renewable energy, have allowed us to navigate changing market dynamics and discover valuable opportunities without encountering substantial impediments. This positions us well to continue pursuing our mission effectively.”
Investment Success Stories
After asking Janssen about investment success stories, he highlighted:
“AnchorFree is a Virtual Private Network (VPN) technology that we invested in at a sub $10 million valuation. A few years later, Goldman Sachs invested in the company at a $50 million valuation. AnchoFree was later bought by Jeffrey Katzenberg’s fund for $295 million. Mohawk (now Aterian, Inc ticker: (ATER)) is an AI company we invested in and watched it go from $3 to $42 a share. Wrap Technologies Inc ticker: (WRAP) is a non-lethal Batman-like wrapping device police use that saves countless lives every year. We invested into the company at $1 per share and it soared to over $13 per share.”
Metrics
After asking about additional investment metrics, Janssen revealed:
“On average, we place about $50 million a year for a basket of different companies. Some of our investors have been with us for more than 30 years, they appreciate our position in the industry, our strategic insight and our ability to produce above average returns in many market conditions.”
Industry Focus
What are some of the industries that Janssen Partners is focused on? Janssen pointed out:
“Healthcare, life sciences, technology, AI, renewable energy, and blockchain.”
Differentiation From Other Firms
What differentiates Janssen Partners from other firms? Janssen affirmed:
“What sets our firm apart from others is our due diligence process and our unparalleled ability to swiftly fund companies. Our strategic advantage lies in the fact that we can act promptly, providing the necessary capital whether it’s for an IPO or a private financing round. This agility allows us to support companies in scaling up rapidly and establishing strategic alliances. This approach has been a cornerstone of Janssen Partners for decades, and it’s the reason why we’ve had companies in our portfolio that have generated returns of over 30x for our shareholders.”
Future Goals
What are some of the firm’s future goals? Janssen pointed out:
“One of our primary objectives at Janssen Partners is to solidify our position as one of the foremost investors in financing altruistic entrepreneurs and their innovative ideas. We’re committed to making a positive impact on society and the environment, in addition to delivering strong returns for our investors. Our holistic approach, focusing on both societal betterment and financial returns, has historically yielded significant returns on Wall Street. We aspire to continue this tradition of success while contributing to a better future for all.”
Additional Thoughts
Any other topics to discuss? Janssen concluded:
“I’m often asked whether companies right now should go public or stay private. When considering whether a company should go public or stay private, it’s a dynamic question. For Janssen Partners, this is a particularly dynamic question due to our capability to provide immediate funding and bring in substantial capital, regardless of the current market environment. When CEOs seek our guidance on whether they should go public or remain private in the current landscape, we present them with a wide range of options. This means they are not forced into a one-size-fits-all position.”
“The flexibility we offer is a testament to the enduring partnerships we have nurtured over the past few decades. It has enabled us to achieve above average returns for our investments while simultaneously contributing positively to society. This unique ability to support companies in making the right strategic choices aligns perfectly with our mission of bettering mankind through responsible and innovative investments.”
