So you’re starting a new medical device company! You’ve got technology, IP, a regulatory path, a reimbursement model, an unmet need, a sustainable competitive advantage, a compelling business case and some seed capital. The future is exciting. What else do you need?
I’ll tell you what you need. You need to own 10-30% of your company on exit, not 2-5% which is what commonly happens. The game seems to be stacked against innovative entrepreneurs. Access to capital is within your reach but only on terms that heavily penalize you for imperfection. If you ever have a hiccup and fail to make a milestone you’re in a vulnerable spot. In order to make payroll you’ll have to go on a frantic roadshow and hope to close on a funding round on whatever terms you can get. They’ll get liquidation preferences, extra options based on your future performance and all sorts of bells and whistles. Meanwhile your technical team is not sitting still. They want extra options to compensate them for the drop in your valuation. You’re caught in the middle with your precious equity streaming out on all sides.
What if you could dial down or turn off a bunch of your costs while retaining your intellectual capital and potential momentum for the future? What if you could spend six months raising capital on the right terms from the right partners instead of getting a bad deal in three months? What would the value of that in retained equity be worth?
Welcome to our latest product. We like to call it “Squeeze Insurance”. It’s free.
At StarFish our engineers are as good as or better than you could find. They have all worked together for years as a highly effective unit that has developed dozens of successful products. They are thoroughly trained in our hardened medical device development systems and processes. And they never leave. Our voluntary turnover rate is as close to zero as you can get. Your team can be confident that those important relationships and the project knowledge you have developed won’t be going away.
So go ahead and put your project on hold for as long as you need to while you raise your next round on the right terms. We’ve got your back.
Image: StarFish Medical