The medtech industry is a cause close to Marc Zemel’s heart. After getting a master’s degree in mechanical engineering from MIT and an MBA from Yale, Marc decided that he wanted to use his education to make a real difference in the world.
After founding Retia Medical over eleven years ago, Marc hasn’t looked back.
“I wanted to make more of a direct impact on society and human health, and what better place than medtech,” Marc commented.
In the early days of Retia, Marc noticed a clear gap in the market where the technology being used was outdated and inefficient. That eventually led to the development of the Argos Cardiac Output Monitor, a tool built by Retia that runs various algorithms licensed by MIT and Michigan State.
Marc and his team’s hard work is paying off as Retia Medical recently closed on $15 million in Series B funding, led by Fresenius Medical Care Ventures. In addition, the Argos system received 510(k) clearance from FDA in 2018 and is now sold in 14 countries.
The Argos system offers data-driven medical care that is individualized to the patient being treated. Specifically, Retia’s Multi-Beat Analysis (MBA) algorithm monitors cardiac output, analyzing the patient’s heart rhythm rather than individual beats. The software creates a digital impression of the patient’s heart function, allowing it to spot minute variances and alert staff to potential issues.
Not only will Retia’s Argos algorithm aim to reduce the cost of healthcare for patients, its primary goal is to detect cardiac issues sooner, saving lives as a result.
In this episode of Medsider, CEO and co-founder of Retia Medical Marc Zemel talks about managing a medtech start-up that’s developing groundbreaking technology while pursuing fundraising that drives sustainable growth.
Key Takeaways from Marc’s Experience
- First impressions are vital: In the medtech industry, there are very few second chances. Unlike the software space, you can’t really build a minimum viable product (MVP) in healthcare. It’s critical to hit the market with a product that does what it’s supposed to do. Yes, there is always room for innovation and improvements, but the baseline product needs to be as advanced as possible before it’s commercially used on patients.
- Always have a backout clause: In any business transaction, it’s useful to have an out clause. Long-running diligence processes such as acquisitions require heavy resource allocation, costing both time and money. A backout clause offers protection so that should things fall apart, the efforts are not all in vain.
- Get the right stakeholders on board early: Domain experts are vital for product development. Whether you’re making hardware or software, it’s crucial to coalesce a group of stakeholders that are genuinely interested in your technology. Ideally, this group consists of people that have connections to help generate commercial revenue or to get your devices in front of the right audience.
Marc has extensive experience in fundraising for successful startups and is an experienced leader of Fortune 500 companies. Prior to founding Retia Medical, Marc earned an MS in Mechanical Engineering from MIT and an MBA in Sales and Marketing from Yale. He’s also held key leadership roles at Becton Dickinson as well as a capital equipment start-up.
Innovating in a High-Risk Industry
Marc became attracted to the medtech space while studying for an MBA at Yale. Shortly after, he founded Retia Medical and was one of the early adopters of software for medical analysis. Marc saw huge potential in the market for medical software and set about designing the Argos system with a software-first perspective.
“We started Retia before the term ‘digital health’ existed. I was excited about algorithms because they are pretty hard to create, and so pretty-well protectable.”
The concept for the Argos system came directly from medical professionals, who complained that the software they were using was out-of-date and inaccurate. When dealing with high-risk patients, data inaccuracies can cost both money and lives.
The Argos Cardiac Output Monitor uses real-time data to monitor high-risk patients thanks to its Multi-Beat Analysis algorithm, which allows clinicians to provide accurate care based on the needs of the individual patient rather than focusing primarily on the case-specific median.
As an example, Marc explains a real-life scenario below when Argos was trialed on an ICU patient and immediately identified a problem that clinicians had not been able to detect.
“About a month ago, we brought our monitor out to a trauma ICU, and they were rounding with it to check on some patients. The patient's blood pressure and heart rate were fine. All the clinical data appeared to be normal. [But after hooking up the Argos], they noticed the patient's parameters were very abnormal, and it turned out that we detected an acute bleed. This patient was bleeding internally, and nobody knew it.”
Focus on First Impressions
The amalgamation of software and medical technology is not one without its pitfalls. The traditional software development process often involves producing a rudimentary product, more akin to a barely-functioning prototype. Sort of like a minimum viable product – or MVP.
But early on at Retia, Marc realized the software MVP framework is not feasible for most medical companies. Instead, clinicians want to see a product that actually functions versus discussing development sprints and iterative deliverables.
“There's no minimum viable product in medtech. Your first impression should be the best.”
Medical professionals demand a certain level of quality in their tools and if you show them a concept that’s too early, you may lose their interest. Additionally, there is no room for error or software bugs in medical devices since the real-world implications are too significant.
However, Marc understood that many clinical professionals have a vested interest in upcoming technology. As a result, they are eager to get involved in discussions and offer feedback.
Networking events and focus groups are a great way to gather valuable information that can directly impact the development process. Just make sure your idea is far enough along in order to glean useful insights.
“Clinicians love to help because they want to see what's coming. And there are some really awesome people that will readily give up their time because they want to see improvements.” Marc advised.
Never Underestimate the Cost of Due Diligence
During Retia Medical’s Series B funding process, Marc learned a lesson he only needed to experience once. The time and effort required during any diligence effort should never be underestimated. And it’s critical for startups to protect themselves from the possible fallout.
Marc explained that he racked up significant fees and legal expenses during a long M&A diligence process. But when their potential acquirer pulled out at the last minute, Retia was left with the bill because they didn’t have any breakup clauses in place.
“If I had to do that all over again, I would have insisted on a breakup fee. Whether it's a fundraise or an acquisition, you need to have some kind of backup plan,” Marc commented.
Diligence processes not only cost a lot of money, but take up considerable employee time and attention, which can prevent the company from making meaningful development progress.
Marc recalled, “They had 90 people on their diligence team and we answered something like 450 questions. But 14 Zoom meetings later, all [your] employees will start asking for status updates. You can pretend to run diligence in parallel to your development, but you’re not big enough to do those things at the same time.”
The medtech industry is a cause close to Marc Zemel’s heart. After getting a master’s degree in mechanical engineering from MIT and an MBA from Yale, Marc decided that he wanted to use his education to make a real difference in the world.
After founding Retia Medical over eleven years ago, Marc hasn’t looked back.
“I wanted to make more of a direct impact on society and human health, and what better place than medtech,” Marc commented.
In the early days of Retia, Marc noticed a clear gap in the market where the technology being used was outdated and inefficient. That eventually led to the development of the Argos Cardiac Output Monitor, a tool built by Retia that runs various algorithms licensed by MIT and Michigan State.
Marc and his team’s hard work is paying off as Retia Medical recently closed on $15 million in Series B funding, led by Fresenius Medical Care Ventures. In addition, the Argos system received 510(k) clearance from FDA in 2018 and is now sold in 14 countries.
The Argos system offers data-driven medical care that is individualized to the patient being treated. Specifically, Retia’s Multi-Beat Analysis (MBA) algorithm monitors cardiac output, analyzing the patient’s heart rhythm rather than individual beats. The software creates a digital impression of the patient’s heart function, allowing it to spot minute variances and alert staff to potential issues.
Not only will Retia’s Argos algorithm aim to reduce the cost of healthcare for patients, its primary goal is to detect cardiac issues sooner, saving lives as a result.
In this episode of Medsider, CEO and co-founder of Retia Medical Marc Zemel talks about managing a medtech start-up that’s developing groundbreaking technology while pursuing fundraising that drives sustainable growth.
Key Takeaways from Marc’s Experience
- First impressions are vital: In the medtech industry, there are very few second chances. Unlike the software space, you can’t really build a minimum viable product (MVP) in healthcare. It’s critical to hit the market with a product that does what it’s supposed to do. Yes, there is always room for innovation and improvements, but the baseline product needs to be as advanced as possible before it’s commercially used on patients.
- Always have a backout clause: In any business transaction, it’s useful to have an out clause. Long-running diligence processes such as acquisitions require heavy resource allocation, costing both time and money. A backout clause offers protection so that should things fall apart, the efforts are not all in vain.
- Get the right stakeholders on board early: Domain experts are vital for product development. Whether you’re making hardware or software, it’s crucial to coalesce a group of stakeholders that are genuinely interested in your technology. Ideally, this group consists of people that have connections to help generate commercial revenue or to get your devices in front of the right audience.
Marc has extensive experience in fundraising for successful startups and is an experienced leader of Fortune 500 companies. Prior to founding Retia Medical, Marc earned an MS in Mechanical Engineering from MIT and an MBA in Sales and Marketing from Yale. He’s also held key leadership roles at Becton Dickinson as well as a capital equipment start-up.
Innovating in a High-Risk Industry
Marc became attracted to the medtech space while studying for an MBA at Yale. Shortly after, he founded Retia Medical and was one of the early adopters of software for medical analysis. Marc saw huge potential in the market for medical software and set about designing the Argos system with a software-first perspective.
“We started Retia before the term ‘digital health’ existed. I was excited about algorithms because they are pretty hard to create, and so pretty-well protectable.”
The concept for the Argos system came directly from medical professionals, who complained that the software they were using was out-of-date and inaccurate. When dealing with high-risk patients, data inaccuracies can cost both money and lives.
The Argos Cardiac Output Monitor uses real-time data to monitor high-risk patients thanks to its Multi-Beat Analysis algorithm, which allows clinicians to provide accurate care based on the needs of the individual patient rather than focusing primarily on the case-specific median.
As an example, Marc explains a real-life scenario below when Argos was trialed on an ICU patient and immediately identified a problem that clinicians had not been able to detect.
“About a month ago, we brought our monitor out to a trauma ICU, and they were rounding with it to check on some patients. The patient's blood pressure and heart rate were fine. All the clinical data appeared to be normal. [But after hooking up the Argos], they noticed the patient's parameters were very abnormal, and it turned out that we detected an acute bleed. This patient was bleeding internally, and nobody knew it.”
Focus on First Impressions
The amalgamation of software and medical technology is not one without its pitfalls. The traditional software development process often involves producing a rudimentary product, more akin to a barely-functioning prototype. Sort of like a minimum viable product – or MVP.
But early on at Retia, Marc realized the software MVP framework is not feasible for most medical companies. Instead, clinicians want to see a product that actually functions versus discussing development sprints and iterative deliverables.
“There's no minimum viable product in medtech. Your first impression should be the best.”
Medical professionals demand a certain level of quality in their tools and if you show them a concept that’s too early, you may lose their interest. Additionally, there is no room for error or software bugs in medical devices since the real-world implications are too significant.
However, Marc understood that many clinical professionals have a vested interest in upcoming technology. As a result, they are eager to get involved in discussions and offer feedback.
Networking events and focus groups are a great way to gather valuable information that can directly impact the development process. Just make sure your idea is far enough along in order to glean useful insights.
“Clinicians love to help because they want to see what's coming. And there are some really awesome people that will readily give up their time because they want to see improvements.” Marc advised.
Never Underestimate the Cost of Due Diligence
During Retia Medical’s Series B funding process, Marc learned a lesson he only needed to experience once. The time and effort required during any diligence effort should never be underestimated. And it’s critical for startups to protect themselves from the possible fallout.
Marc explained that he racked up significant fees and legal expenses during a long M&A diligence process. But when their potential acquirer pulled out at the last minute, Retia was left with the bill because they didn’t have any breakup clauses in place.
“If I had to do that all over again, I would have insisted on a breakup fee. Whether it's a fundraise or an acquisition, you need to have some kind of backup plan,” Marc commented.
Diligence processes not only cost a lot of money, but take up considerable employee time and attention, which can prevent the company from making meaningful development progress.
Marc recalled, “They had 90 people on their diligence team and we answered something like 450 questions. But 14 Zoom meetings later, all [your] employees will start asking for status updates. You can pretend to run diligence in parallel to your development, but you’re not big enough to do those things at the same time.”
