Starting a Fundable Medical Device Company Christopher Porter - - PowerPoint PPT Presentation
Starting a Fundable Medical Device Company Christopher Porter Medical Genesis Christopher Porter, PhD n Chemical Engineer/Material Science n 40 yrs in Medical Industry in Product Development and Management n Serial Entrepreneur/Intrapreneur
n Chemical Engineer/Material Science n 40 yrs in Medical Industry in Product
Development and Management
n Serial Entrepreneur/Intrapreneur
n 30 + Products on Market n 50+ Patents n Early Stage Life Science Company Advice
LSDF, COULTER
n Highly Regulated n High Value/High Margins n Different Types
n Third Party Payers n Medical IT has a different model
TUMOR
Resected Tumor Cancerous Margins EXTERNAL BEAM RADIATION FROM DIFFERENT DIRECTIONS Damage to Healthy Tissue Missing the Target M
Balloon with Radioactive Fluid Low Level- Localized and Precise Radiation
n Less expensive than fractional
n Does not need specialized and
n Faster Treatment Time n Easier on Patients n Less Healthy Tissue Damage n Arguably more effective treatment n Can be adapted to other cancers
Radiation following a lumpectomy for Breast Cancer
CONCEPT
DEVELOPMENT AND CLINICALS COMMERCIALIZATION
EXIT STRATEGY
IDEA
Feasibility Proof of Concept FDA Approval Sales and Profitability IPO or Sale of Company
VALUE ADDER MILESTONES
COMPELLING UNMET NEED
FUNDABLE STAGES OF A MEDICAL COMPANY
3.Final Development and Regulatory Approval
$ $ $
EARLY STAGES PLANNING
Business Plan
LATER STAGES EXECUTION
n Elegant solutions to non-problems
n Product, not an company
n Wasting resources on overly complex products
n Not doing enough upfront homework
clear
n Non-investable management pitching the
n Trying to raise investor money to soon
FEASABILITY OK PROOF OF CONCEPT OK PRODUCT DEVELOPMENT OK IDEA
$ $ $
TIME
$
Probability of Success VALUE OF COMPANY
LOW HIGH
TIME COMPANY VALUE
IDEA PROOF OF CONCEPT FDA APPROVAL
SIGNIFICANT SALES, POSITIVE CASH FLOW
LIQUIDITY
RISK
VALUE RISK
HIGH LOW Value Added Milestones
FOUNDERS (Common)
IDEA, KNOWHOW, IP SWEAT-EQUITY $ $ $ $ PUBLIC FUNDING POINT VALUE RECEIVED STOCK IN COMPANY
$ INVESTORS (Preferred)
IDEA- (DEFINE A NEED AND PRODUCT TO FILL IT) DEMONSTRATE PROOF OF CONCEPT COMPLETE DEVELOPMENT AND OBTAIN REGULATORY APPROVAL COMMERCIALIZATION LIQUIDITY EVENT (IPO OR SELL IT) START 6-18 Mo 0.2-1.0 MM$ 1-3 YR 5-15 MM$ 1-3 YR 10-20 MM$ END 0.3-1.0 MM $ 5-10 MM $ 20-40 MM$ 100-200 MM$ STAGE TIME AND $s RAISED PRE-MONEY VALUE
20 40 60 80 100 120
Start 1st 2nd 3rd Liquidity
Round % or $MM
% Ownership Founders Value Company Value
n NON DILUTIVE
n EARLY STAGES (DILUTIVE)
n LATER STAGES
n LIQUIDITY
n Good ones can add a lot of value to the
n Their job is to maximize the return for
n Want to structure as strong a company as
n Will try and get control of the company
n A good Return on Investment
n Sell the Company or Idea n Public Offering
n Initial value of the venture n Time it takes to get to liquidity n How much total money will go into it by that time n What will be worth at the liquidity event
n Is this worth it for investor to work on
n Bet People as Much as (more than)
n Evolutionary vs. Revolutionary n Product vs. a Company n Market Potential Too Low n No or Poor Patent Position n Reimbursement is unlikely (Make it
n Too high expectation of initial value n Regulatory is too risky n Overly optimistic projections
n Most excited about the things you
n You don’t know what you don’t
n The last person you want to fool
n Invest in only things that create
n Don’t be too valuation sensitive
n Always raise money before you need it n Raise enough money-It always takes
n The largest predictor of success