Being a medical device startup has its drawbacks — namely, lacking the funding needed to get your product to market. The average cost to launch a 510(k) medical device is $31M, while the average cost to launch a PMA medical device is $94M. Unless you have that money lying around in preparation of your product’s design, development, marketing, and production, then you’re going to need to get some funding.
That’s where investors come in.
How It Works
As a medical device startup, you’re probably already learning that the medical device development process is lengthy and costly. If you’re hoping to turn your idea into reality, you’re going to wind up putting a lot of time and money into it.
If you don’t have the money to get your product to market, then you have to start by getting investor interest. When you do, you need to keep in mind their three biggest concerns:
- If the product is feasible. If you’re not sure, take part in early feasibility studies and have your product clinically investigated.
- How many people will use it. Make sure your product is one that many people can access so that it can be wide-reaching and successful.
- What the benefits are. The benefits of your product should outweigh the negatives, and the residual risk should be within an acceptable range.
In making your product attractive to investors and focusing on these three key areas, you’ll be more likely to secure funding from them.
What to Do
Here’s what you need to do so you can pitch your medical device to investors.
Develop a prototype. You need to communicate your vision, and your prototype is how you’ll do that. By working with an experienced medical device development partner, you can get your prototype where it needs to be before your presentation.
Give relevant information. A new product comes with a lot of questions, and it helps to do the legwork upfront for investors. In knowing why the product is necessary, who the end-user will be, and what the size of the market is, you can eliminate the unknowns so they can get their answer to you quicker.
Acknowledge the risk. Everything comes with a risk, and acknowledging the technical, business, and people-related risks shows that you’re already thinking ahead.
If you’re looking for funding, you probably feel confident that your product is going to be a success — as long as you can secure funding, of course. Investors just want to make a good investment, and your job is to show them that you have a good product worth investing in.
Moving Forward with Your Medical Device
The medical device industry is highly saturated these days, so if you want to secure funding, you need to work hard to stand out. We know how stressful it can be to hire a medical device partner when you’re already spending so much money working to get your medical device to market. However, if you’re already putting a bunch of time, energy, and money into the process, you might as well do it right so your device can see the success it deserves!
At C3 Medical Device Consulting, we’re proud to help innovators and startups secure funding for their medical devices. To learn more about how we can help, schedule a free consultation with our team today.