How to grow your medical device business through its life cycle

While every medical device business founder daydreams of pre-revenue exits and unicorn valuations, it is imperative to plan for the long and unpredictable haul. Richard F. Mattern, Bass, Berry & Sims PLC [Image from Unsplash]Despite the starting point being nearly universal (founder sees a clinical need, a promising market opportunity and a path to regulatory approval or clearance), a business’ opportunities, challenges and capital can vary significantly. Your corporate focus and related legal needs can shift through your medical device company’s life cycle as it grows. Surviving the burn (early stage) While operating initially on a shoe-string budget is possible, the initial funding, whether in the form of a “friends and family” raise or out of the founder’s pocket, will be quickly exhausted. Furthermore, medical device startups regularly find themselves in an extended and ever increasing cash burn position, which often exceeds $500,000 per month. Thus, the company will likely have to raise a significant amount of capital from professional investors. Despite the tendency of the terms and structure of those investments to evolve over time and by investor type, the capital raising tips below are generally applicable. Be prepared. Professional investors will need a concise presentation and a specific plan for the capital supported by reasonable projections and assumptions. Don’t overstate the opportunities or understate the challenges. They will know. Finally, ...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News bassberrysims startups Source Type: news