2 min reading time

“Looking for investment” is the number one request I get as leader of the Medical Devices Group.

That’s a hard one especially because (a) early stage investments in medical device startups are drying up and (b) without understandng the deal intimately, I’m hesitant to send it to potential backers.

Lucky for me, I met Mark Kraus at the last Medical Devices Group networking event in Seattle. Mark is part of the world’s largest angel investor network. See http://medgroup.biz/keiretsu

I asked him how he evaluates opportunities. He replied,

“When I am approached about a company, I generally ask for two pieces of information:
• A one or two page summary of their business
• A short slide deck that the company uses in a 7 to 10 minute pitch for fundraising.

The 1-2 page summary should include the following, each with a concise, single paragraph and/or bullet points. It’s important to keep this concise – it’s not a full business plan!
• Company Contact Info – name, address, url, key management, board, advisors, contact info for CEO
• Company Overview – elevator pitch summary of the company
• Market Problem – what problem / opportunity is the company trying to address?
• Solution – What product / service is the company developing to address that market problem?
• Market – Short description of overall market segment (overall size, revenue, segmentation and competition)
• Regulatory – What is the regulatory status or plans for the company’s product / service?
• Intellectual Property – Describe any patents granted, patents applied for, licenses, university/other commercialization agreements
• Business Model – How will your company make money? How will investors make money (exit, IPO, partnership, etc.)?
• Deal Terms – Prior funding summary, pre-money valuation, deal terms for current raise

The slide deck needs to address the above points as well, albeit in a presentation format. Graphs, pictures, timelines, prototype examples, simple tables are often used. Generally a little more detail on financial than the above one pager allows, but important to keep it high level and not a detailed, complex spreadsheet. Overall, the presentation needs to tell a story that captures the essence of the company and why this is a great investment opportunity.”

Mark said if company executives can’t provide the above, they probably aren’t ready.

What do you think of Mark’s advice?

How have you been successful at the early-funding stage of your business? What lessons or resources can you share with the group?

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CONVERGE Innovation Summit: July 15-16 in Philadelphia

The healthcare ecosystem will gather at the MedCity CONVERGE Innovation Summit to discuss leading strategies and latest innovations for the future of healthcare.

Keynote speakers including the President & CEO of GE Global Healthcare Services and the Director of IT Innovation for Medtronic (among others) will discuss how their organizations are leading in healthcare innovation — how they did it and what their experience means for the future of healthcare.

Use promo code MDG to save 40% at http://medgroup.biz/2014-CONVERGE — only $495 for Medical Devices Group members! Thanks, MedCity team!

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Discussions This Week

Will UDI make implant tracking a breeze?

FDA told me to figure it out myself

Quality Management System based on ISO 13485 or is ISO 9001 enough?

Apple’s iWatch held up by FDA?

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Make it a great week.

Joe Hage
Medical Devices Group Leader

P.S. I’ll meet you in Boston on July 7 http://medgroup.biz/Boston-July-7 and in San Diego on July 14 http://medgroup.biz/San-Diego-July-14 … join me if you can!