Venture Capital

How to Fund Medtech Startups in a Capital-Efficient Manner: Interview with Rich Ferrari, Managing Director of De Novo Ventures

“We will not invest in your company because it’s clear you’ll need a PMA.” That’s the stance that some medtech venture capitalists are currently taking. Why?

Because costs continue to rise for early-stage medical device companies at a significant clip. While the approximate cost to obtain a PMA approaches $100 million, 80% of medtech exits over the last several years have been less than $250 million. Do the math. Those numbers are less than impressive.

In this interview with Rich Ferrari, Managing Director of De Novo Ventures, we’ll learn more about the current state of medtech venture capital and the corresponding impact on medical device startups.

Interview Highlights with Rich Ferrari

  • Novel ways to fund early-stage medical device companies.
  • The differences between a “medical device generator” model an “incubator” model.
  • Why late-stage medtech deals are so popular today.
  • How does Rich identify and validate an idea that is truly disruptive?
  • Why does the FDA “runway” seem to get longer and longer over time?
  • Product vs. founding team: What is most important?

Listen to the Interview with Rich Ferrari

Read the Interview with Rich Ferrari

Download a copy of the interview transcript right here.

More About Rich Ferrari

Rich Ferrari is a cofounder of De Novo Ventures, one of the premier firms dedicated to medical devices and biotech. Rich has been a successful CEO of two publicly traded medical technology companies. Cardiovascular Imaging Systems was eventually acquired for $125 million by Boston Scientific. His most recent success, CardioThoracic Systems (CTS), was acquired by Guidant for $350 million in November 1999. Rich was also a co-founder of Integrated Vascular Systems (acquired by Abbot Vascular) and Ensure (acquired by J&J).

Ferrari also serves as a faculty member of the Stanford Biodesign Emerging Entrepreneurs Forum, as well as a board member for the Stanford | Coulter Foundation for Translational Medicine. Rich is the recipient of the Mallinckrodt Award for Excellence in Medicine and has been a finalist for the Entrepreneur of the Year Award. Rich holds a BS degree from Ashland University and an MBA from the University of South Florida.

You May Like These Articles

  • Recent
  • Featured
  • Related

How to Take Your Medtech Idea from Zero to One: Interview with Dr. Scott Wolf, Founder of Aerin Medical

In this interview with Dr. Scott Wolf, Founder of Aerin Medical, we break down the advantages of cash-pay versus insurance reimbursement, and get his advice for would-be founders hoping to turn a great medical device idea into a real prototype.

How to Transition from a Consumer Product to a Medical Device: Interview with Rohan Dixit, CEO of Lief Therapeutics

In this interview with Rohan Dixit, CEO of Lief Therapeutics, we discuss product development, how he approaches clinical research, and why they initially launched their device as an over-the-counter consumer product.

The Importance of Understanding Clinical Trial Design as a Medtech CEO: Interview with Nadim Yared, CEO of CVRx

In this interview with Nadim Yared, CEO of CVRx, we discuss his journey with the company, including Nadim’s expertise on clinical trial strategy, startup funding, and working with FDA & CMS.

3 Critical Goals Every New Medical Device Should Aim For: Interview with Doug Evans, CEO of Lungpacer Medical

In this interview with Doug Evans, CEO of Lungpacer Medical, we discuss tips for launching medtech startups, working with payers & regulators, commercializing novel technologies, and we'll learn more about Lungpacer's impressive system.

Conquering the Coverage and Reimbursement Landscape: Interview with Bruce Shook, President of Intact Vascular

In this interview, Bruce Shook discusses medical device insurance coverage and reimbursement, as well as advice for other healthcare entrepreneurs that need to raise money.

Why Curiosity and Persistence are Crucial Characteristics for Medtech Entrepreneurs: Interview with the Legendary Dr. John Simpson, Executive Chairman of Avinger

In this interview, the legendary Dr. John Simpson shares what drew him to the field of cardiology, his approach to building a medtech team, and why knowing your strengths and limitations is key to making a difference in the lives of others.

After Selling 2 Cardiovascular Companies for Over $1 Billion, Duke Rohlen is Now Hoping to do the Same with Spirox and Advanced Cardiac Therapeutics

In this interview with Duke Rohen, he discusses how he successfully led two early-stage medtech companies at the same time and the major lessons he learned raising money for 4 different medical device companies.

Having a Heart Attack? There’s an App for That! The Incredible Story of How Dr. David Albert Brought the ECG iPhone App to Market

In this interview with Dr. David Albert, we learn about his incredible journey in bringing the first iPhone ECG app to market with AliveCor.

Why Early Stage Medical Device Deals Aren’t as Bad as You May Think: Interview with Mike Carusi, General Partner at Lightstone Ventures

In this interview with medtech venture capitalist, Mike Carusi, he explains why early-stage medical device companies should look at biotech and pharma for creative ways to fund their companies.

Is Medtech Venture Capital Dead in the Water? Interview with Kevin Bitterman, Principal at Polaris Venture Partners

In this interview with Kevin Bitterman, we learn what medtech venture capitalists like to see in a startup and how these early-stage medical device companies can best position themselves for success.

How to Fund Medtech Startups in a Capital-Efficient Manner: Interview with Rich Ferrari, Managing Director of De Novo Ventures

In this interview with Rich Ferrari of De Novo Ventures, we learn more about the current state of medtech venture capital and the impact on medical device startups.

What it Takes to Get a Medtech VC to Say Yes: Interview with Lisa Suennen

In this interview with Lisa Suennen, we learn why medical device companies will need to adjust their business models to succeed in today's healthcare environment.

Success! Your membership is now active.