Viratech Corp. (OTC: VIRA) is the first social network platform focused on biotech research and experience-based searching. The goal of the company is to accelerate the research and development of new cancer therapies and diagnostics. In a relatively short period of time, this company has not only become a solid performer for investors, but a worldwide force against limitations in cancer research and a powerhouse behind therapy collaboration.
What will keep this company at the top is its ability to enter new and emerging markets, its offering those markets a service that consumers want and can believe in, and also through strategic partnerships with other industry leaders.
The company was founded by Dr. Kevin Buckman with the aim of increasing collaboration in cancer research. With increased collaboration, the world can benefit from advancing treatment solutions. With the launch of www.cancer.im, cancer research can be shared, treatment plans can be tested, and knowledge can go to the individual.
But it wasn't just about setting up a cool interface where people can connect. For Buckman, it was also about setting up a sustainable business with a revenue model that kept it profitable. Social networks have been broken down into smaller sub-sectors, generally around a certain topic. These 'Micro Social Networks' (called MSN's) allow for a more focused conversation.
Of course, the success of any business lies in the connecting of service or product to consumer. To do this, tactics are employed that will allow the business to either reach a wide range of people in hopes of turning them into customers, or by target a specific group of people, the majority of whom will be customers.
Companies like LinkedIn (LKD) try the 'shotgun method'. Namely, it tries to appeal to as many people as possible, thereby hoping to turn some into consumers. However in doing so, LinkedIn has moved from being a platform serving the purpose of connecting professionals together and job-seeker to employer, to a corporation now aimed at meeting board standards for profit and revenue. It is essentially twisting its original intent by trying to grow itself the wrong way. This sends up numerous red flags to the investor.
On the other hand, Cancer.im uses the second strategy, focusing on targeting this singular audience. Once reached, they can sell items through the MSN which are designed with that specific market in mind.
The company is implementing another strategy that will ensure its success. Business effectiveness can multiply through partnerships. Recently, Viratech announced a partnership with Newswire. As any business needs marketing in order to thrive, Newswire has agreed to increase the promotion of Viratech with access to unlimited free press release distribution via its news feeds. This allows the contributor (individual or business owner) to promote their idea, entice funding and development partners over the platform. This fulfills the mission of the company by advancing diagnostics or therapies to those that can benefit from it sooner rather than later.
Viratech picked up another partner last month: Diabetes.net. In a letter of intent, Viratech wanted to provide a turn-key Social Network for Diabetes Network Charities for $250,000, plus 25% royalty from all revenue derived from the operation of the site.
Diabetes.net founder, G. Ford Gilbert said, "Viratech's method of broadcasting and building content through user generated content is innovative and clever, and I am extremely excited that Diabetes.net will be a part of it."
Viratech is not only a great example of good business, but also of doing good. The company works to consolidate this highly fragmented world of biotech research and development and make that knowledge public. Its sole aim is to benefit people. By leveraging the utility of social collaboration and networking, it meets a need that individuals cannot meet for themselves.
As an negative example, it seems that Facebook (NASDAQ:FB) has been watering down its original purpose of 'connecting people' to allowing people to connect while attempting to generating revenue. Let the reader not misunderstand - revenue is the lifeblood of business and is necessary. However, when one moves it from 'byproduct' to it's main vision, it will inevitably come to a disastrous end.
Harbinger Research, a leading equity research firm that specializes in presenting highly promising opportunities to small-cap and micro-cap investors, states that:
"Overall, we view Viratech one of the most exciting companies, business models, and value propositions we have ever seen. If ultimately successful, Viratech will make the world a better place, as well as significantly enriching all of its stakeholders on a financial basis."
Even so, one needs to be completely aware of the risks involved in all small cap/penny stocks investments. Unlike the stocks listed in major exchanges, penny stocks have very low daily volume. In addition, unfounded hype for a small cap or penny stock attempts to drive up the price of the stock significantly for the holders to sell.
That being said, investors should do the research. Looking at both sector and business structure, both biotech and social networking are fields have seen impressive stock growth. The business model is one that is already showing sustainable growth. Finally, as it is relatively undiscovered, this is a perfect time to invest in a multi-billion industry.
Business relationship disclosure: I was not requested to take a specific position on any company in this article, just compare social networking companies.