At C3 Medical Device Consulting, we help innovators like you create next-generation medical devices and get them to market. But being a medical device startup has its drawbacks — namely, lacking the funding needed to get your product to market. No matter how good your idea is, the reality is that you can’t make a medical device without money.
As a medical device startup, you probably already know that the medical device development process is lengthy and costly. If you plan to turn your idea into reality, then you’re going to be putting a lot of time and money into it.
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.
If you don’t have the money to get your product to market, a good place to start is by piquing investor interest. When you make your product attractive to investors, there’s a good chance you’ll be able to secure funding from them. So how can you do that?
Develop a prototype.
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. At this stage, you should have developed a prototype of your product that you can show off to prospective investors. A prototype can communicate your vision for your medical device in its initial development. At the same time, it can allow you to present your long-term goals for your medical device (and how they will benefit the investor). If you don’t know how to get started with a prototype, an experienced medical device development partner can help you.
State your case.
You want an investor to give you money? Then you need to give them all the information they want upfront.
Make sure they know:
- Why the product is necessary
- If the product has a proven need
- If similar products already exist
- Who the end-user will be
- Who will be purchasing the product
- The size of the market for the product
By offering this information upfront, they’ll know that you already did their homework so all that’s left for them to do is decide whether or not they’re going to give you money to make it happen.
Address the risk.
Investors are smart. They won’t invest in something that’s too risky, or clearly going to fail. There are three risks you need to think about because your potential investors are already thinking about them. Then? Address them as you make your case for funding.
Clearly discuss the following risks:
- Technical risk (if the idea will actually work)
- Business risk (if there’s really a market for the idea)
- People risk (if the right people are in place to make it a success)
All investors really want to know is that they’re making a worthy investment. That is, they want to know that their investment in your product is going to pay off for them in the end. Your job is to show them that it will so you can secure funding and keep moving forward in the medical device development process.
The Next Step for Your Medical Device Startup
Ready to take the next step for your medical device startup so you can get your product to market? Schedule a consultation with our design team today. We’ll work with you to develop a prototype so you can secure funding. And remember: If you can demonstrate that your medical device has a good chance of successfully making it to market, that money is as good as yours.