https://proximomedical.com/wp-content/uploads/2018/04/proximo_logo-1.png 0 0 Ferguson https://proximomedical.com/wp-content/uploads/2018/04/proximo_logo-1.png Ferguson2019-07-24 15:54:452019-07-24 15:54:45Why do 75% of U.S. based medical device start-ups fail?
Medical device innovation can be life-changing so it is in all of our best interest that they succeed. So why are the odds of failing so high? Here’s our take:
- While innovators are great at bringing ideas to life, they lack the expertise to market and commercialize products. Know your space and reach out to professionals in other skill sets to assist in getting you to product launch.
- Access to funding is a challenge. Medical device startups don’t get bank loans for their ideas. Initial funding typically comes from friends, family or angel investors before approaching venture capital (VC) funds. Navigating the VC landscape is complicated and time consuming so having inroads or a knowledgeable consultant is key. Today’s investors are demanding more and more upfront market validation to minimize risk which means a limited market release, with proven sales, before a liquidity event.
- Don’t short-change the importance of clinical findings to validate your product. Clearly, the regulatory environment is tough in today’s market, especially in the medtech space. Manufacturers must stop relying on dated studies and show clinical data on their own new medical devices, and ongoing data after the launch to maintain credibility.
Let Proximo take you to the next level… we know what’s next.