Medtech Startup Investors Want You! Or do they? You’re a medtech startup and you sit in a unique sweet spot within the medical technology investing space, if only because you have created something that no other entrepreneur has even thought of, no less attempted to create. You’ve likely been on a long journey towards developing the next great innovative device and/or software application that portends to disrupt the healthcare industry at large and their approach to treating those suffering from a specific, or a set of maladies. Your patented invention, proprietary protocol or process will improve or save countless lives in a cost efficient manner, and your medtech startup value proposition will enable savvy professional investors to count more winners in their medtech startup portfolios once they subscribe to your private placement offering. After all, once you are properly funded with the capital needed to further execute yoru business strategy and forge into the marketplace, your product(s), service(s) and solution(s) will likely generate millions, tens of millions, or perhaps hundreds of millions of dollars in revenue. Your early and latter stage investors will help you ring the bell at the New York Stock Exchange when your IPO is listed, providing the monetization event that many entrepreneurs can only dream about.
The good news for those focused on the medtech startup space, according to a Q4 2017 study published by industry research firm EvaluateMedtech, the global medtech industry is expected to grow at 5.1% per year between 2016 and 2022, culminating in 2022 global sales of $522bn. While the analysis is based on in-depth forecast models for the top 300 global medtech companies available and the sales forecast represents the only current consensus view from equity analysts covering the mature (publicly traded) medtech market, its reasonably easy to suppose that those with a high risk tolerance and investing in compelling medtech startup initiatives are in the right place at the right time.
According to a report by global consulting firm Ernst & Young, the state of the global medtech industry warrants a mood of “cautionary optimism” as company leaders and investors look to wind up 2017 and look ahead to 2018.
That’s the conclusion of EY’s Pulse of the Industry 2017 report released at the annual conference of AdvaMed, the nation’s largest medical devices lobby group in late September. One of the more significant findings was that net income for medtechs in the US and Europe rose 17 percent, which is one reason for the optimism, explained John Babitt, partner of the Life Sciences Transaction Advisory Services, in a phone interview.
Net income for medtech companies rose to $16 billion, which represents the largest year over year increase since the financial crisis of 2008, Babitt said.
Both Babitt and Arda Ural, principal, Ernst & Young Transactions Services – Life Sciences, found the increase in medtech venture capital investing noteworthy. At $7.7 billion, this represented a 23 percent year-on-year increase, and with investments from traditional VCs and strategic investors.
The report found said that the 2016-17 period saw the three largest medtech VC deals completed since EY began tracking the industry more than a decade ago. Those deals included two diagnostics companies developing liquid biopsy technologies: a $973 million Series B raised by Grail and a $360 million later-stage round raised by Guardant Health, both California companies. The third was a $800 million round that Verily raised, which is the life sciences subsidiary of Alphabet, formerly known as Google.
There were also corporate venture capital investments that married traditional healthcare firms with some of the new entrants in healthcare.
Of course, for every 1000 great ideas, only a tiny fraction of medtech startups (or any other startup) that work to bring innovation to the market are able to gain traction without having the working capital to fund final research stages, go-to-market strategies and actual business operations until profitability is realized. Aside from the inherent risks of investing in medtech startup firms, for every medical device company that ultimately prevails as a commercially viable enterprise by delivering a product or service to the targeted marketplace, dozens of those companies die every year.
PPM Q4 2017 coverage of the medtech startup sector provides entrepreneurs with a rudimentary road map for entrepreneurs in the space seeking funding and includes a crisp case study analysis of Brain Tunnelgenix Technologies (BTT Corp.) an enterprise that could prove to be the cure for truly smart professional and or strategic investors within the medical device sector who are looking for their next billion dollar opportunity. See the video below…don’t forget to scroll further down!
Whether in pre-op stage, which is when you are preparing your business plan, on the operating table-the stage when savvy investors are performing due diligence and surgically interrogating your proposition for funding, or during post-op, the stage when you’ve received funding but fail to actually make it to market for any number of reasons, Medtech Startup 4.0 is primer to the current challenges as well as the vast opportunities for medical technology entrepreneurs, medtech startup investors, and the medtech investing industry as a whole as we approach the 21st century’s third decade.
Medtech startup investors are the first call for young companies in the space that require substantial funding. Here at PPM, we’re viewed as a leading provider of investor offering prospectus documents and related offering memorandum writing services for a broad spectrum of startup and established companies. We help medtech startup firms (as well as entrepreneurs across the tech ecosystem) fund their initiatives by providing the types of documentation required by smart investors and careful-eyed regulators. We help develop business plans and presentation decks, create private placement and other investor offering memorandums, and we provide other services that medtech startup firms, martech startups, fintech startups (including those launching Initial Coin Offerings, as well as insurtech and adtech startups can use to launch and grow. When appropriate, we can also arrange capital introductions and or initial outreach campaigns to institutional investors, private investment firms and/or strategic investors who would be more than intrigued by your opportunity.
With team members working from offices in major cities across the globe and a captive network of corporate finance professionals, investor offering document specialists and securities law experts, we also serve established and fast-growing companies advance second and third round funding initiatives via private placement offerings, and we help clear the runway with the proper documents needed towards advancing Initial Public Offerings (IPOs), Initial Coin Offerings (ICOs) and/or Initial Token Offerings.
Medtech Startup Investors 4.0 : 2018 Diagnosis for Sector