Fundraising Best Practices for Early-Stage Medtech Companies

While it’s true that medtech startups can be extremely challenging, they also promise substantial rewards for entrepreneurs who can navigate the terrain successfully. Read on for insights on how to attract and engage investors, leverage non-traditional funding sources, and optimize your funding rounds for maximum impact.

Key Lessons from this Playbook

• Refine your pitching skills and engage VCs over time: Don't make your first pitches the make-or-break ones; allow yourself some room to see what resonates with potential investors. And don’t expect immediate funding, rather cultivate relationships with VCs over time and include them in your journey through regular updates.

• Build and leverage your network: Leverage social media and local organizations to connect with early-stage and institutional investors. Common interests might be useful for reaching out, but make sure you have a solid understanding of where and how they invest, too.

• Make your pitch deck stand out: Good design can be just as crucial as the information it includes. Opt for professional design services or try out some free AI tools to give your pitch deck the extra polish it may need to get you to a ‘yes’.

• Understand your investors’ profile and capacity: Research potential investors' interests, their previous and current portfolio companies, and their financial capacities in order to tailor your pitches. And, remember: your valuation will increase substantially if there’s a clear path to commercialization, and that’s usually only possible through reimbursement.

• Apply for grants early on: Submit SBIR grant applications early and often, even if they are not perfect. The timelines are often long and the feedback you receive will serve as a valuable springboard. Consider multiple avenues and use tools like NIH’s SEED program and NIH Matchmaker to align your grant applications with relevant institutions.