Medical Device Startups Serving OR & Critical Care

This post comes from David Gomez, CEO and Founder of Infinitus Medical Technologies. David actually posted this on LinkedIn, where I asked if I could post it here.

Attention to all medical device start-ups serving the operating room and critical care markets:

  • Are you seeking funding to get your approved products into the market?
  • Are you having a hard time finding investors because you are considered a product and not a company?
  • Has the chaos of the Affordable Care Act destroyed investment opportunities?
  • Does your product(s) have value propositions that align with current changes demanded by this legislation?
  • Does your product or service come from a clinical perspective or have a foundation in evidence based practice?
  • Is it safer and more cost efficient than your competitors?
  • Do you lack the resources to bring your innovative product across the goal line?
  • Last of all, do you need help with distribution but lack the sales or margins needed for sustainable growth?

Can identify with some of these questions or scenarios? How do suppose we create a sustainable community that solves these common themes?

I believe the answer to some of these issues could be solved through teamwork.

Ponder these scenarios:

  • What if product ready small businesses could tap into other small businesses (non-competitors) to create a consortium that allows for regional distribution and or/sales of products into other market locales?
  • What if companies who served the same customers markets help sell the products of other consortium businesses for a reduced commission?
  • Example: Offer reduced commissions in the realm of 10-15%.
    • This allows some money to trickle into your fledgling company allowing positive cash flow.
    • This flow helps you both maintain some sustainable modest growth while you also sell your own products.
    • Your consortium partner also mirrors this model.
    • Your connections and networks will soon grow!
    • But beware you must stay in your own market disciplines for this to work.
    • Reduce commissions will allow modest growth for the owner of the technology or device as he reduces vital overhead in the early growth stage.
    • The owner of the technology throws an extra 5% onto the consortium pot (collections) for all consortium members to use and distribute through an agreement.
    • The best use of these funds would allow consortium investment into promising new start-ups.
    • The consortium would in essence become an investor, resource, and business partner.

These are just a few ideas to start a dialogue.

Small start-ups lack many resources and connections that help them leverage themselves in those early stages. Creating a community of likeminded and honest professionals to create a sustainable model is the future.

Most of the big companies are merging to increase their market shares and opportunities in a dwindling healthcare economy. This not a coincidence! These same companies do this because they have lost both the ability and sustainability through antiquated vertical integration models. As a consequence they have leveraged their growth and innovation through the purchasing of start-ups (not necessarily a bad thing). But most importantly, they have lost the ability to respond exclusively to their customer’s needs. As a care provider I know this to be true.

Why can’t we do the same through a much more thought provoking and new business growth model? A model where we call the shots, thereby allowing growth and opportunities on our terms whether it succeeds or fails. Let’s face it not every company survives but at least now it has a fighting chance!

Adopt a semi “Incubator” model where the consortium also hires professionals dedicated to the group, not to specific shareholders. They could serve as valuable resources for members of the group.

This is obviously an oversimplified group of ideas, but to spare you a novella I have opened up a conduit for real discussion.

Let’s hear some opinions, comments, and or ideas that allow us to help each other. I believe it is time to change the “way it has always been done”. Healthcare demands solutions that transcend investor profits and motives. They are still the financial backbone of American Capitalism, but healthcare must evolve into a new era.

One thing we must remember outside of ROI (and it will naturally come through great innovations and/or services) is that we all become patients at some point of in our lives.

We must also act as stewards. We can’t afford to let good ideas fail to reach their intended markets because of inexperience, agnostic investors, and small capital needs.

The floor is yours!

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