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.

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