As part of analyzing our deal flow in 2012, I made the following observations. First, for background, the mission of Nutrition Capital Network (NCN) is to facilitate financing and asset sales for growing companies and to introduce investors to the next generation of successful brands and technology in the nutrition and health and wellness industries. Every six months we hold an international meeting (the next is April 30 in NYC) with 20 companies selected from a pool of 80-100 applicant and referrals from our network. The table below summarizes the deal flow.

1) We continue to see a steady supply of food and beverage companies looking for growth capital, both functional and natural and organic. Many of these are brands past their definition of proof-of-concept (product on the shelf and selling) but not yet at proof-of-concept for professional investors (scalable profitable business or $3 million in EBITDA).

2) Supplement and ingredient companies continue to come out in strong numbers and generally the level of scientific sophistication is growing here, notably more so in ingredients, where in supplements there are still a number of marketing plays.

3) Household, personal care or green products are growing modestly and again like food brands, many companies looking for capital are generating sales, but are still small.

4) In size, the number of large opportunities is fewer, and strategic acquirers are finding this as well in almost all categories we portray.

5) We have added two new segments at the bottom, but you’ll notice in other newer segments we see growth in technology deals, and here these are mostly digital technology deals in the IT sense, not nutrition technology that tends to go in ingredients, although it may be diagnostic and marketing facilitation technology.

This table summarizes the proprietary deal flow of Nutrition Capital Network (NCN, www.nutritioncapital.com), and is prepared on behalf of NCN’s Cornerstone Investor members. NCN hosts three national meetings each year for strategic and private equity investors, presenting 18-22 screened and rehearsed growth companies seeking equity investments or strategic partners at Fall and Spring Meetings and 10-12 Ingredients & Technology companies at the SupplySide West meeting. Each six-month NCN meeting cycle features a broad solicitation of NCN’s network and database of companies in the nutrition industry.