A Handheld Ultrasound Device for Your Smartphone, https://www.nanalyze.com/2020/07/spacs-retail-investors/. Company profile page for Butterfly Network Inc including stock price, company news, press releases, executives, board members, and contact information Butterfly Network is backed by high-profile investors including Baillie Gifford, the Bill and Melinda Gates Foundation, and Fosun Industrial. We can work to get these SPAC pieces out sooner, but we often need to wait for them to file sufficient information so we can write an informative piece. For the sake of argument, let’s pretend the price of shares falls back to $11.00 and we’re paying a more reasonable premium of 10% – or ideally, no premium at all. Our handheld ultrasound device is easy to use, works with iPhone and Android and fits in your pocket. See you at the top! As with other SPACs, there are the usual forward-looking revenue growth estimates that help justify the company’s valuation against other publicly traded firms with lofty valuations. Typically the SPAC will trade flat at around $10 per share because that’s what almost all SPACs debut at. Butterfly Network Stock. butterflynetwork.com | Healthcare | Founded: 2011 | Funding to Date: $370,761,699 Provider of a medical device designed to make medical imaging accessible to everyone for diagnosis and monitoring. The transaction, which is expected to raise $589 million in gross proceeds, values Butterfly Network at an enterprise value of $1.5 billion. If you're in a country where we are available, you can purchase a probe in the Butterfly Store.. How can I get a quote? Evan graduated from the University of Texas at Austin, and is a CFA charterholder. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. This is why we don’t like SPACs. While there are other companies offering handheld ultrasound units like Philips Lumify, the overall market penetration for handheld devices is quite low at less than 3% globally. Butterfly Network has raised $350 m in total funding. Here are some of the key points from our 2018 article on Butterfly Network: Today, we want to learn more about the inner workings of Butterfly, things like: Because Butterfly is going public using a SPAC, we needed to sift through their 636-page filing document looking for the juicy tidbits. Butterfly Network, a global leader in democratizing medical imaging, to be listed on NYSE through a merger with Longview Acquisition Corp. Butterfly Networkâs mission is to enable universal access to superior medical imaging, making high quality ultrasound affordable, easy-to-use, globally accessible and intelligently connected. Upon closing, the combined company's Class A common stock is expected to be traded on the New York Stock ⦠Bill & Melinda Gates Foundation and Fosun Pharma are the most recent investors. During 2019 and for the nine months ended September 30, 2020, approximately 13% and 28%, respectively, of Butterflyâs product and service revenue was generated from customers located outside of the United States. The global market for ultrasounds is around $8 billion, and that number doesn’t account for the 2/3 of the global population that doesn’t have access to medical imaging. The Desktop Metal SPAC differed from the others in the following ways: The Butterfly Network SPAC checks the first two bullet points, but not the last one. When there is a company going public via SPAC that we might like to invest in, usually hype drives the shares skyward before the deal even goes through. Seems like a lot of recent growth is happening outside ‘Murica. Is there a software-as-a-service component here? If shares start to approach the $10 mark, then you’ll be paying what the smart money paid. Such is the case with Butterfly Network. ; Select the Butterfly iQ or Butterfly iQ Vet in the store. Generally speaking, we avoid SPACs like the plague, though we did invest in one. Guilford-based health technology startup Butterfly Network Inc., maker of a portable, pocket-sized ultrasound device, is merging with hedge fund-backed Longview Acquisition Corp. and going public. We’ve noted this as a possible feature for our premium subscribers going forward. At this point in time nothing has transpired. Media Relations. Let's conquer your financial goals together...faster. Butterfly Network, Inc. Mike Cavanaugh or Mark Klausner Westwicke, an ICR Company (646) 677-1838 investors@butterflynetwork.com. Butterfly received 510(k) clearance for the Butterfly iQ in 2017 and launched in 2018. Call. Give us a call and leave a message. Use the PitchBook Platform to explore the full profile. Once the deal closes, the combined company will trade on the New York Stock Exchange under the symbol BFLY. Just so happens, we’re holding two medical device companies in our DGI portfolio right now – Stryker (SYK) and Medtronic (MDT). Last we looked, the acquiring company’s shares were trading at a 65% premium. Guilford, CT and New York, NY â November 20, 2020 â Butterfly Network, Inc. (âButterflyâ or the âCompanyâ), an innovative digital health company that is working to enable universal access to superior medical imaging, and Longview Acquisition Corp. (NYSE: LGVW.U, LGVW, LGVW WS). Then, some rumor will surface and the SPAC will often jump 50 to 70 percent or in some cases much higher. Butterfly estimates that its addressable market is $8 billion, and the company believes that it can disrupt the market with a combination of low costs and superior technology. The deal hasn’t even settled yet, and the Robinhood trader types are already hyping the stock. The merger will give shareholders in Butterfly Network the right to receive shares of BFLY stock on a one-for-1.0383 basis per share. SO ASSUMING SMART PULL BACK, THIS STOCK HAS GOOD PROSPECTS OF REACHING 200 LEVELS QUICKLY. Institutional investors thought a fair price was around $10 per share, and that’s what we think retail investors should pay as well. Butterfly Network is a digital health company whose mission is to democratize healthcare by making medical imaging universally accessible and affordable. Save my name, email, and website in this browser for the next time I comment. Your email address will not be published. The SPAC Deal: Butterfly Network, a handheld portable ultrasound company, is merging with Longview Acquisition Corp (NYSE: LGVW). So, if you want alerting for SPACs, we wouldn’t be able to get an alert out fast enough for anyone to take advantage of. (Traditional cart-based equipment typically ranges from $45,000 to $60,000 per new device in the mid-range.). 1-855-296-6188 Do as I say, not as I do. Longview will merge with Butterfly Network, a digital health company that provides access to medical imaging such as ultrasounds. Butterfly Network is registered under the ticker NYSE:BFLY . Several years ago, we wrote about A Handheld Ultrasound Device for Your Smartphone which detailed how life sciences company Butterfly Network is reinventing the ultrasound machine by squeezing all of its components onto a single silicon chip. In finance, they call these “risk-adjusted returns,” and everyone will have a different tolerance for risk. Butterfly Network, the maker of a $2,000 handheld ultrasound device, has raised $250 million from large private investors. Revenues for 2019 came in at $27.6 million, and for the first nine months of 2020 were at $30.6 million. For example, we advise readers to never try and time the market, but we’ll occasionally engage in the practice ourselves. Stock Advisor launched in February of 2002. Given we already have a decent amount of exposure to the medical device theme, we’re not overly keen to occupy one of our 30 portfolio holding slots with a medical device company, exciting as it may sound. We can also see they plan to introduce wearables in 2023, a whole new market the company plans to expand into, and one of their largest growth opportunities. Butterfly sold and shipped approximately 12,900 devices in the year ended December 31, 2019, and approximately 12,500 devices in the nine months ended September 30, 2020. Evan is a senior technology specialist at The Motley Fool. THIS IS ⦠The shares only traded at a small premium to what institutional investors paid. Here's how: Navigate to our online store. Sometimes, we’re willing to take on additional risk because we believe the upside outweighs the potential downside. Butterfly Network founder Dr. John Rothberg will be the largest shareholder of the new company. People who hold shares already are happy to sell them for a quick gain. Butterfly Network is funded by 6 investors. An overly simple explanation of what’s happening is that institutional investors are paying around $10 per share for their investment in Butterfly Network while retail investors have to pay $16.65 for the same shares. It’s not just about SPACs, but also about sharp increases/decreases in share price for stocks in our portfolio. Existing Butterfly investors Baillie Gifford, the Bill and Melinda Gates Foundation, and Fosun Industrial will have their current shares converted into equity in the new company at a ratio of 1 for 1.0383 per share. The price for Butterfly iQ is unmatched by competitors and expected to get as low as $500. Butterfly Network, Inc. Sean Leous Westwicke, an ICR Company (646) ⦠When Alteryx dumped -40%, we couldn’t help but open a position. Once the deal goes through, shares will trade under the ticker BFLY. For the sake of argument, letâs pretend the price of shares falls back to $11.00 and weâre paying a more reasonable premium of 10% â or ideally, no ⦠For newbie investors, there’s an inclination to take on lots of risk in exchange for a great story. No telling what the price point will be for that offering, but the iQ+ is currently being offered for $1,999 on their home page. All images produced by the devices are stored in âthe cloudâ where deep learning algorithms study them and learn how to diagnose medical problems. "Nine years ago, Butterfly was created to make high-quality ultrasound affordable, easy to use and globally accessible to all," Rothberg said in a statement. He was previously a senior trading specialist at Charles Schwab, and worked briefly at Tesla. The SPAC vehicle is not inherently bad, it’s the pre-revenue companies that typically use SPACs which we’re not big fans of. The company is forecasting revenue to grow from $44 million in 2020 to $334 million in 2024. We did this on a few trades but nothing after that because it really is quite speculative and we’re investors, not speculators. So, getting into the alerting business around SPACs isn’t something we can do. Butterfly Network valuation is $1.3 b,. Cumulative Growth of a $10,000 Investment in Stock Advisor, Why Longview Acquisition Stock Jumped Today @themotleyfool #stocks $LGVW, Why Longview Acquisition Stock Popped Today, Copyright, Trademark and Patent Information. Butterfly's Ultrasound-on-Chip⢠technology replaces the traditional transducer system with a single silicon chip. Media Relations. Investors who get on board should pay attention to management’s ability to hit these targets. We really wish SPACs would go away already because they present too many complications that aren’t found with traditional IPOs. Many of these great stories you’ll find with special purpose acquisition companies (SPACs) that often take pre-revenue startups public in a process that usually does a disservice to retail investors. The experienced leadership team has a vision that they appear capable of executing on. We detailed those trades here: https://www.nanalyze.com/2020/07/spacs-retail-investors/. Longview is a special purpose acquisition company (SPAC), which have been all the rage this year. Last week, Butterfly Network announced their intent to merge with a SPAC called Longview Acquisition Corp. (LGVW) with the transaction expected to close sometime next year. That means one probe that can emulate any transducerâlinear, curved or phased. Wait for the dust to settle. Longview Acquisition Corp. John Rodin info@longviewacquisition.com. Other types of alerts, possibly, but not right now given our current resources. Considering the founder, Jonathan Rothberg, is a serial entrepreneur who founded more than 10 healthcare/technology companies, including 454 Life Sciences, Ion Torrent, and CuraGen, seems likely they’ll hit these aggressive revenue growth numbers. People who want to go long the company that’s being absorbed by the SPAC are in a bad position because they need to pay a hype premium. Their latest funding was raised on Sep 27, 2018 from a Series D round. The Butterfly filing lists their primary competitors as the top five manufacturers of legacy cart-based incumbent ultrasound devices – General Electric, Philips Healthcare, Canon Medical Systems, Hitachi, and Siemens Healthineers. Butterfly Network Stock – A Play on Portable Ultrasounds. As of November 1, 2020, Butterfly owned approximately 275 issued patents and approximately 537 pending patent applications. About Butterfly Network Stock Butterfly Network designs the Butterfly iQ, a handheld single-probe whole-body ultrasound system that connects to a mobile phone or tablet. The question then becomes how an investment in Butterfly Network fits into our broader portfolio of tech stocks and dividend growth stocks. Butterfly Network has raised a total of $350M in funding over 3 rounds. Stryker, Medtronic, and Johnson & Johnson are all companies found in our dividend growth investing strategy, Quantigence. Longview Acquisition Corp. John Rodin info@longviewacquisition.com. The SPAC was announced on November 20th. No existing shareholders will be selling any equity as part of the transaction. Information on valuation, funding, cap tables, investors, and executives for Butterfly Network. Founder Jonathan Rothberg will become chairman of the new company and wield controlling voting power through supervoting Class B shares that receive 20 votes per share. The deal values Butterfly Network at $1.5 billion. Ultimately, they would like to get the device in the hands of consumers. We would categorize Butterfly Network as being in the business of medical devices. How can I buy a Butterfly iQ? would be possible to publish this kind of news earlier, maybe first in short form (high-level) and later more in detail. It used to be (probably not now) a good way to make a few quick dollars with minimal downside risk. A reader recently questioned why we invested in Desktop Metal while at the same time constantly criticizing the mechanics of SPACs. The product development process seems mature, and the “iQ in the Home” flavor is expected to launch next year. Lots of investments are being made in shoring up their intellectual property portfolio. View Butterfly Network stock / share price, financials, funding rounds, investors and more at Craft. We certainly wouldn’t want to alert on simply rumors (that’s how most of these start). In the U.S., Butterfly has made sales to or has agreements with most of the top 100 U.S. healthcare systems. Butterfly Network, Guilford, Conn., will be listed on the New York Stock Exchange under the ticker symbol BFLY. Learn more about iQ+ So, one way you could play this is to own shares in SPACs and wait for the rumor. Looking for a portable ultrasound machine? Last we looked, the acquiring companyâs shares were trading at a 65% premium. Butterfly Network, Inc. Sean Leous Westwicke, an ICR Company (646) 866-4012 Here’s what we found. Want to see the rest? Buy today! For those who decide to pull the trigger on the Butterfly Network SPAC, here are some key metrics to watch. Butterfly Network announced that it entered into a definitive business combination agreement and will go public with Longview Acquisition Corp. We will return your call within 1 business day. Butterfly Network's mission is to make ultrasound technology universally accessible and affordable through the sale of its iQ product and ⦠While a small premium might be warranted, a premium of 66.5% is out of the question. Let’s take a look under the hood of Butterfly Network. Today, their products are commercially available in 40 different countries including the United States, Canada, Australia, New Zealand, and throughout greater Europe. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Thank you for raising this. Butterfly Network has raised a total of $370 million in funding from investors including the Bill & Melinda Gates Foundation, ... Stock Quotes, and Market Data and Analysis. Become a Nanalyze Premium annual subscriber. The merger is expected to close in the first quarter of 2021. We find ourselves guilty of that sometimes. Required fields are marked *. What’s the total addressable market here? In this case, we have a quality company that – at least from where we sit – is inaccessible because shares are being bid up when the deal hasn’t even closed. Returns as of 12/18/2020. You can generate a quote yourself. We’ve noted alerting in our product roadmap and appreciate the feedback. Building and selling a cheap handheld ultrasound machine is a simple business to understand. Your email address will not be published. As a result of the announcement, shares of the SPAC in question jumped over +66%. The company's medical imaging device is portable, cheap and provides high-quality ultrasound on ⦠The Butterfly Network SPAC checks the first two bullet points, but not the last one. Around 85% of revenues come from product sales and the remainder from subscription services. Butterfly Network, Inc. Mike Cavanaugh or Mark Klausner Westwicke, an ICR Company (646) 677-1838 investors@butterflynetwork.com. BUTTERFLY - BUY AT CURRENT LEVELS 183-180 FOR PULLBACK BUTTERFLY MADE A RECENT HIGH OF AROUND 212 AND SINCE THEN SHOWING CORRECTION NIFTY ALSO WAS DOWN 100 PTS TODAY. Once the deal closes, the combined company will trade on the New York Stock Exchange under the symbol BFLY. Market data powered by FactSet and Web Financial Group. Shares of Longview Acquisition (NYSE:LGVW) jumped today, up by 21% as of 12:50 p.m. EST, after the company announced its acquisition target. According to the company, Butterfly iQ is “the only ultrasound transducer that can perform whole-body imaging in a single handheld probe using semiconductor technology.” Their latest Butterfly iQ+ device connects directly to an iPhone or Android smartphone and tablet to provide its imaging and software features for more than two consecutive hours, while charging to full battery in approximately five hours. 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