Lloyd Mencinger's extensive journey in the medtech industry, which includes working with major companies such as Baxter, Edwards Lifesciences, and Boston Scientific, has provided him with invaluable insights and experiences, both domestically and internationally. His vast expertise is what ultimately led him to his current position as CEO of Aqua Medical.
Aqua Medical is at the forefront of innovation, developing groundbreaking platform technology for vapor-based endoscopic ablation therapy designed to treat type 2 diabetes with a 30-minute outpatient procedure. The technology is likely to be a game-changer for multiple diseases that affect the gastrointestinal tract, including type 2 diabetes, Barrett's esophagus, and pancreatic cysts.
Aqua’s cutting-edge treatment has demonstrated promising results in animal studies and is on the cusp of entering human trials. The procedure's potential for long-lasting efficacy of up to two years is quite remarkable, especially given its minimally invasive nature.
In our conversation with Lloyd, we trace his career journey in the medtech industry and the challenges of keeping a medical device startup going. Lloyd also talks us through the story behind Aqua Medical's technology and discusses the future of gastrointestinal disease treatment.
Key Learnings from Lloyd’s Experiences
- Embrace capital efficiency and rapid iteration in your startup journey. Keep your organization lean and focus on quickly cycling through prototypes. This will help you reach proof of concept faster considering your resources are extremely limited.
- Focus on driving value in your company rather than solely aiming for an acquisition. Work towards achieving milestones that increase the company's worth and provide a sustainable path forward.
- Persevere through the fundraising process. If you encounter low success rates for pitches, don’t get discouraged right away, but keep reaching out to potential investors. Remember that the journey can be lonely, so lean on your support network, faith, or other sources of encouragement to help you navigate the challenges of raising capital.
Lloyd Mencinger is a high-energy CEO with decades of international experience in medical device sales, marketing, and business development. He has a strong track record of delivering results in both blue-chip and early-stage companies, including Boston Scientific, Edwards Lifesciences, and Baxter Healthcare. Currently, Lloyd is the CEO of Aqua Medical, a company on the verge of developing groundbreaking technology for type II diabetes and other GI conditions.
Embracing Capital Efficiency and Rapid Iteration
When you’re in the early-stage development of a medtech startup, you are bound to make beginner mistakes. However, to avoid these errors from wiping out your company, Lloyd stresses the importance of embracing capital efficiency and rapid iteration to reach an effective proof of concept. This means that during the early alpha and beta builds, it's essential to cycle through iterations quickly and use resources wisely.
One critical aspect of this approach is to keep the organization lean. As Lloyd notes, "Do not build out a big organization. Do not scale up and think you need all these things. I mean, keep it super lean because runway oxygen is your life… Try to do as many prototypes [and] try to do it as cheaply as you can to get to proof of concept."
Of course, he acknowledges, you won’t necessarily get it right the first time, but mistakes are part of the process. “Disappointments and mistakes are requirements. They're the only thing that will propel you to success for the next phase. You have to make mistakes. You have to learn from them. That's the only way it's going to keep you going up and to the right,” concludes Lloyd. The idea here is to fail forward and bounce back.
Another crucial factor for success is to have the right team on board. Lloyd emphasizes the importance of searching for the right connections and partners, especially in regulatory matters.
He cautions that some big consulting firms can make the regulatory journey harder by making illogical requests, such as requiring in-human clinical studies without properly considering other creative approaches that require less costs and resources. Instead, he advises startups to find practical, knowledgeable partners with relationships at the FDA who can help them navigate the regulatory process.
With the right team and strategy, startups can efficiently navigate the challenges and move forward towards their milestones.
How to Drive Company Valuation: The Importance of Milestones
A startup journey is like a cross-country trip, where each milestone is like a stop on the way to a final destination. Lloyd stressed the importance of reaching value inflection points at each milestone of your startup journey instead of blindly aiming for an acquisition.
His view is that while it’s of utmost importance to be cognizant of who your natural acquirers are, operating with tunnel vision can distract you from the opportunities that’ll bring value to the company. "You might get acquired in Arizona. You might get acquired in Dallas, but don't count on it. If you're building for acquisition, you may miss the window,” Lloyd adds.
In his view, if building clinical value is the primary focus of a medtech startup company, the rest will follow.
Lloyd also shared a story from his experience at Boston Scientific, where he had a potential acquisition lined up, but an unforeseen event outside of his control prevented the deal from going through. "It's not until the wire is in the bank, that you have the deal closed," he says, emphasizing the unpredictability of this process.
Overall, what a startup needs is a sustainable path forward. You should be able to adapt to changing circumstances to reach your target milestones. While an acquisition might happen along the way, it should not be the sole objective, as it may lead to missed opportunities and an inability to adapt to changing circumstances.
Navigating Rejections, Angel Groups, and Other Parties in the Fundraising Process
Raising capital is a numbers game where you might only have a 1% success rate. The other 99% of the time, it just might be you getting rejected when pitching to a potential investor.
As CEO of a successful startup, Lloyd acknowledges that the journey can be lonely, especially in the medtech space. He advises potential startup founders to stay determined throughout the fundraising process and not let discouragement hold them back.
The key is to rely on your support system, Lloyd says, and “Fight through the discouragement. Now, I'm a guy of faith, so that's where I go with that. But you just have to plod through.”
Lloyd emphasizes that fundraising is an exercise in persistency. It's all about pounding the pavement and connecting with a string of investors. While angel groups can be hit or miss, he recommends attending meetings like WSGR and LSI to hone your networking skills.
According to Lloyd, fundraising is a visceral, emotional challenge and a lonely job. That’s why he holds the view of collaboration over competition, especially in an industry where you’re trying to disrupt and create new markets. The reality is that there's always the risk that the opportunity may not materialize, making it crucial to team up with other innovators in the industry.
To overcome the difficulty of raising money, Lloyd also recommends finding a better purpose than simply making money. “We're in medtech. We are in the business of saving people's lives. We're not selling potato chips. So this is a big deal. What you are doing, you need to believe in it. And if you truly believe in it, it will shine through.” Passion and integrity are key drivers of success in any startup, but especially in the medtech industry. And investors can easily tell whether a founder genuinely believes in their company's mission or not.
Lloyd Mencinger's extensive journey in the medtech industry, which includes working with major companies such as Baxter, Edwards Lifesciences, and Boston Scientific, has provided him with invaluable insights and experiences, both domestically and internationally. His vast expertise is what ultimately led him to his current position as CEO of Aqua Medical.
Aqua Medical is at the forefront of innovation, developing groundbreaking platform technology for vapor-based endoscopic ablation therapy designed to treat type 2 diabetes with a 30-minute outpatient procedure. The technology is likely to be a game-changer for multiple diseases that affect the gastrointestinal tract, including type 2 diabetes, Barrett's esophagus, and pancreatic cysts.
Aqua’s cutting-edge treatment has demonstrated promising results in animal studies and is on the cusp of entering human trials. The procedure's potential for long-lasting efficacy of up to two years is quite remarkable, especially given its minimally invasive nature.
In our conversation with Lloyd, we trace his career journey in the medtech industry and the challenges of keeping a medical device startup going. Lloyd also talks us through the story behind Aqua Medical's technology and discusses the future of gastrointestinal disease treatment.
Key Learnings from Lloyd’s Experiences
- Embrace capital efficiency and rapid iteration in your startup journey. Keep your organization lean and focus on quickly cycling through prototypes. This will help you reach proof of concept faster considering your resources are extremely limited.
- Focus on driving value in your company rather than solely aiming for an acquisition. Work towards achieving milestones that increase the company's worth and provide a sustainable path forward.
- Persevere through the fundraising process. If you encounter low success rates for pitches, don’t get discouraged right away, but keep reaching out to potential investors. Remember that the journey can be lonely, so lean on your support network, faith, or other sources of encouragement to help you navigate the challenges of raising capital.
Lloyd Mencinger is a high-energy CEO with decades of international experience in medical device sales, marketing, and business development. He has a strong track record of delivering results in both blue-chip and early-stage companies, including Boston Scientific, Edwards Lifesciences, and Baxter Healthcare. Currently, Lloyd is the CEO of Aqua Medical, a company on the verge of developing groundbreaking technology for type II diabetes and other GI conditions.
Embracing Capital Efficiency and Rapid Iteration
When you’re in the early-stage development of a medtech startup, you are bound to make beginner mistakes. However, to avoid these errors from wiping out your company, Lloyd stresses the importance of embracing capital efficiency and rapid iteration to reach an effective proof of concept. This means that during the early alpha and beta builds, it's essential to cycle through iterations quickly and use resources wisely.
One critical aspect of this approach is to keep the organization lean. As Lloyd notes, "Do not build out a big organization. Do not scale up and think you need all these things. I mean, keep it super lean because runway oxygen is your life… Try to do as many prototypes [and] try to do it as cheaply as you can to get to proof of concept."
Of course, he acknowledges, you won’t necessarily get it right the first time, but mistakes are part of the process. “Disappointments and mistakes are requirements. They're the only thing that will propel you to success for the next phase. You have to make mistakes. You have to learn from them. That's the only way it's going to keep you going up and to the right,” concludes Lloyd. The idea here is to fail forward and bounce back.
Another crucial factor for success is to have the right team on board. Lloyd emphasizes the importance of searching for the right connections and partners, especially in regulatory matters.
He cautions that some big consulting firms can make the regulatory journey harder by making illogical requests, such as requiring in-human clinical studies without properly considering other creative approaches that require less costs and resources. Instead, he advises startups to find practical, knowledgeable partners with relationships at the FDA who can help them navigate the regulatory process.
With the right team and strategy, startups can efficiently navigate the challenges and move forward towards their milestones.
How to Drive Company Valuation: The Importance of Milestones
A startup journey is like a cross-country trip, where each milestone is like a stop on the way to a final destination. Lloyd stressed the importance of reaching value inflection points at each milestone of your startup journey instead of blindly aiming for an acquisition.
His view is that while it’s of utmost importance to be cognizant of who your natural acquirers are, operating with tunnel vision can distract you from the opportunities that’ll bring value to the company. "You might get acquired in Arizona. You might get acquired in Dallas, but don't count on it. If you're building for acquisition, you may miss the window,” Lloyd adds.
In his view, if building clinical value is the primary focus of a medtech startup company, the rest will follow.
Lloyd also shared a story from his experience at Boston Scientific, where he had a potential acquisition lined up, but an unforeseen event outside of his control prevented the deal from going through. "It's not until the wire is in the bank, that you have the deal closed," he says, emphasizing the unpredictability of this process.
Overall, what a startup needs is a sustainable path forward. You should be able to adapt to changing circumstances to reach your target milestones. While an acquisition might happen along the way, it should not be the sole objective, as it may lead to missed opportunities and an inability to adapt to changing circumstances.
Navigating Rejections, Angel Groups, and Other Parties in the Fundraising Process
Raising capital is a numbers game where you might only have a 1% success rate. The other 99% of the time, it just might be you getting rejected when pitching to a potential investor.
As CEO of a successful startup, Lloyd acknowledges that the journey can be lonely, especially in the medtech space. He advises potential startup founders to stay determined throughout the fundraising process and not let discouragement hold them back.
The key is to rely on your support system, Lloyd says, and “Fight through the discouragement. Now, I'm a guy of faith, so that's where I go with that. But you just have to plod through.”
Lloyd emphasizes that fundraising is an exercise in persistency. It's all about pounding the pavement and connecting with a string of investors. While angel groups can be hit or miss, he recommends attending meetings like WSGR and LSI to hone your networking skills.
According to Lloyd, fundraising is a visceral, emotional challenge and a lonely job. That’s why he holds the view of collaboration over competition, especially in an industry where you’re trying to disrupt and create new markets. The reality is that there's always the risk that the opportunity may not materialize, making it crucial to team up with other innovators in the industry.
To overcome the difficulty of raising money, Lloyd also recommends finding a better purpose than simply making money. “We're in medtech. We are in the business of saving people's lives. We're not selling potato chips. So this is a big deal. What you are doing, you need to believe in it. And if you truly believe in it, it will shine through.” Passion and integrity are key drivers of success in any startup, but especially in the medtech industry. And investors can easily tell whether a founder genuinely believes in their company's mission or not.
