5 Secrets to Securing Medical Device Venture Capital
As a founder of a medical device development company, securing medical device venture capital is one of the biggest barriers you will need to overcome.
You've attracted a large audience of early adopters and need to show investors that you're ready to take it to the next level. Moreover, you need to convince investors that their monetary contributions will yield a positive return on investment.
One medical device company leveraged market differentiation in its pitch:
“As a new company in an important field of novel cancer medicines, Black Diamond is a premier example of Versant’s three key differentiating features — a focus on breakthrough innovation, geographic reach, and company creation capabilities. We are very pleased to support a company that has an exceptionally powerful platform able to fuel its growth and pipeline for the foreseeable future.” — Alex Mayweg, Ph.D., Versant Partner, and Black Diamond Board Member
In a short amount of time, Black Diamond Therapeutics raised $20 million in partnership with Versant Ventures to fund the development of a new type of precision medicine to combat cancer. Black Diamond Therapeutics was the first company to launch out of Ridgeline, Versant's Discovery Engine in Switzerland.
As an eQMS platform purpose-built for startup and scaleup medical device companies, we've worked with many founders who have reached the next stage of business growth through VC funding. This experience has given us deep insight into the five secrets to securing medical device venture capital.
How to Land Medical Device Venture Capital: 5 Secrets Revealed
Medical device venture capital firms provide the necessary cash flow, expertise, and resources needed to bring products to market. With that in mind, here are five ways to secure venture capital for your own medical device company.
Secret #1: Set up scalable systems
Investors are looking for exponential growth potential—which means your eQMS and other systems should be scalable.
A platform like Qualio can grow with your team, so you don’t have to change software during crucial stages of growth—such as the startup and scaleup stages. Our eQMS software can support a team of up to 500 employees effortlessly.
Qualio is cloud-based and includes all the tools you need to bring your products to market quickly. It’s the only platform that was designed specifically for scaleups, startups, ISO requirements for pharma, biologics, and SMBs in the life sciences industry per FDA cGMP, and medical device manufacturers.
Some of the most popular software features include CAPA audits, document control, non-conformance, training, supplies, and complaints.
RELATED READING: 12 Questions to Ask Before You Buy an eQMS
Secret #2: Look for shared values
Be selective with the firms you approach. Choose an investor with an in-depth understanding of the healthcare industry. The ideal firm should have experience working with startups like yours.
A knowledgeable firm that routinely finances startups is going to know the common problems you can expect to encounter. Their advice and guidance should help you avoid those issues and smooth the path for your success.
Don’t go into business with a firm that doesn’t mesh with your company culture. You're going to spend many hours communicating with your investors, so everyone needs to get along well.
Be sure to spend time with the associates you’re going to be working closely with before you sign the paperwork and receive funding. Once a contract is signed, it can be next to impossible to get out of. Make sure you read all the fine print carefully and make sure you understand the terms of your funding completely.
Secret #3: Nail the elevator pitch
One sentence can change everything. Making a good first impression is essential for securing VC funding. If you expect investors to take you seriously, you need a well-thought-out business plan with a clear picture of who your target audience is and the value you deliver.
To figure out what your pitch is, ask yourself these questions:
- Who is going to buy your products?
- Why will your customers want to buy them?
- What problem are you helping your customers solve?
- Why is your product better than your competitors?
Their answers will help you begin crafting your elevator pitch—which should be short, sweet, and to the point. A simple formula to remember when writing your pitch is this: We help x achieve y. Don’t make it too complicated by sharing too many details at once. Otherwise, a potential investor who's already busy enough may stop listening.
A great pitch grabs your audience's attention from the start and makes them want to know more. Speak clearly and confidently when you deliver your pitch and show potential investors that you stand by your products.
Secret #4: Build a team of advisors
Great leaders build a team with varied expertise that they can rely on. VCs want to see this. Build your team with advisors who are familiar with the ins and outs of raising VC. Your team can consist of:
- Board Members
- Industry Executives
- Professional Investors
Select people who are committed to your company’s values and have the expertise you need to run your company smoothly.
Secret #5: Work your connections
Most good VCs won't take unsolicited pitches from startups they've never heard of. If you work with a medical device consultant, they often have good connections. The right consultant can help you implement new software, achieve certification, seek venture capital, and improve overall quality, among other things.
The top six medical device consultant firms are:
- The Weinberg Group
- Ken Block Consulting
- MDI Consultants
- M Squared
- MWA Consulting, Inc.
It’s crucial to find a consultant who fits your needs and has experience with companies like yours. An ideal candidate should have relevant experience in your industry, have past success designing or implementing improved management systems, a high success rate with former clients, and eQMS experience.
Unlock Powerful Venture Capital for Your Medical Device Company
In your search for venture capital for your medical device company, you'll need to have the processes and procedures in place to further showcase your expertise.
Is Qualio a right fit for your medical device company? We believe that we are the best eQMS for growing life sciences companies. But don’t just take our word for it. Read our reviews on G2 Crowd. Our customers share these recommendations to people like you who are considering moving to Qualio.
For example, Vanessa’s posted a helpful video review where she shares this advice: “If you’re working in a paper-based QMS system, Qualio really is a much better alternative. And if you’re considering it, I would definitely log on, look at some of their free tutorial videos, and see how easy it is to use. They also have a number of references to call to ask them what their experience has been, how easy it is to get started, how is it is to get trained, and how easy it is to implement.”