Medical device venture funding in the United States is broken. New start-up funding is at an all-time low for medical device Series A & B rounds. This is attributed to VC company exits taking from 5 to 10+ years to achieve an exit. This extended length of time requirement for extenstive funding (e.g., $50M to $185M) requires a much higher exit price to reach appropriate levels of ROI. The demand for a higher exit price ($250 to $800 million) causes significant friction with potential acquirers and exasperates the “Risk of Failure Fear” with the large strategic buyers.
MED1‘s approach addresses all three issues by shortening time to exit, reducing level of required funding and lowering the acquisition price while providing investors appropriate ROI levels.