Funding & Investment

Funding & Investment

Securing funding in the face of adversity



Categories:

Medtech startups are struggling to secure funding in the early phases of development. Here’s what large companies, venture capital, and startups can do to combat this troubling trend.

 

There is too little funding for early-stage technologies in the medical technology industry. Investors aren’t showing up for medtech opportunities, in part because of the time, capital, and uncertainty associated with reaching meaningful milestones, clearing regulatory hurdles, and securing reimbursement. This isn’t news, but a recent report raises an alarm, noting that a shortage of investments in the early phases of a new technology means patients are potentially losing out on lifesaving inventions.

Recognizing this dearth of funding, Deloitte and AdvaMed conducted research with more than 20 leaders in the medtech industry to identify potential solutions. Their report, “Out of the valley of death,” details the findings of this work. The main suggestions to address this gap include more partnerships between startups, venture funds, large medtech companies, and customers; a potential tax incentive; considering novel business plans; and trying to seek out new sources of funding like family offices.

The MedTech Forum 2018

The MedTech Forum is one of the largest health and medical technology industry conferences in Europe. Since 2007, it provides participants with the chance to gather insights on the latest industry trends, as well as networking opportunities with other business leaders, leading innovators and investors. The MTF 2018 programme will focus on digital developments, new business strategies and innovation.

Register now

Some of this is already taking place, with notable examples like Abbott’s agreement with diabetes company Bigfoot Biomedical and Johnson & Johnson’s JLABS incubation spaces. But more is needed.

Image pulled from original article.

This article first appeared on Medical Device and Diagnostic Industry and was written by Marie Thibault. You can read the full article here.

About the Medical Device and Diagnostic Industry

MD+DI is an online and print resource exclusively for original equipment manufacturers of medical devices and in vitro diagnostic products. Its mission is to help medtech industry professionals develop, design, and manufacture products that comply with complex and demanding regulations and evolving market requirements. Read more from MDDI Online mddionline.com.

Related articles

Contribute

You're the expert! Write for The Engine or share your articles, papers and research

Add your content

Add your content

Keep informed

Sign up for Ignition, our regular, ideas-packed newsletter

Sign in with social media

or with a username