Seriously considering starting a medical device startup, wondering about options afterwards
I have done research and worked with some guys at my school who are also STEM majors with business interests, and one of the guys who I've done research with has landed himself as the provisional-patent holder of a really tremendous piece of technology. I have no doubts about the science, and I feel confident about the business plan we have come up with so far. I am however concerned about what will come after.
This device will not require any major clinical trials in order to prove safety, and we are planning on either going direct to consumer or seeking out a licensing deal from one of the larger medical device manufacturers, so we aren't concerned that this will be a decade's-long endeavor. But best case scenario, what are my options afterwards? Worst case scenario (company tanks and investors loss money), what are my options?
Just to give some color as to my long-term goals, I'd ideally like to head towards VC. Healthcare IB would also be a great place to land.
If you think it's got promise, do it, and don't worry about the after. Odds are you'll make some good connections and things will fall into place.
But then again, if you have to ask, you might not have the stomach running a startup...
I understand your questioning my commitment. While I may be overly cautious, I am currently in process at a few healthcare IB groups, and if I jump full on board with the startup I will likely not be able to take an internship. Now, I am completely okay with walking away from the conventional path for a few years and pursuing this idea, but I can't help but put a little thought into the thereafter.
Is it common for people to make the jump from venture-backed startup to VC?
Yes, people move from VC backed startups to VC. That is one of the most common ways to get into VC
This is so WSO to already be concerned with your potential situation After the medical device company before you've even committed to doing it.
You prob don't want to leave the IB job until you are reasonably sure the med dev company is going to be a winner. You need to use your own judgement BC the internet community cannot steer you here. Everyone's appetite for risk is different.
Ya our tech-transfer office had a cadre of patent lawyers go through the patent review and analysis over the last year. But that's moot, as we've now parted ways with that kid's idea. We looked at the market space, built some preliminary business plans, and decided it just wasn't for us.
We're now talking with two different teams of researchers about licensing one of their technologies. Both ideas have their individual pros and cons, and we have hooked up with domain experts who have significant fund-raising contacts for each technology. So we'll be working through the minutia over the next few weeks to figure out which one is best for us. One of the techs is patent protected, and the other is currently unprotectable with a first to market best to market situation brewing.
One other idea that one of my friends and I have been approached about is forming the business dev/strat team of a unique start-up with moderate upside potential. Thing is, the scientist has already stated in no uncertain terms that we would not be founders and that we would basically be glorified assistants of his, despite being their from day one. Anyone's thoughts on this kind of arrangement, if worst comes to worst?
Stay the hell away from this. Scientists aren't business people, and they often suck at business/have no business intuition. It's clear that this guy wants to be the man and will likely not take input from others. Sounds like a bad situation from the get-go.
I 100% agree and that idea is largely dead at this point. I've spoken with my team and expressed thoughts similar to yours.
We are currently set between two technologies that will take anywhere from 2 - 4 years before they will be acquirable. We feel confident in getting a couple hundred thousand in angel money within the next two months, and a series A could, comfortably, be reached within the next 12 - 18 months. For a group of students, with startup and VC experience, we feel relatively comfortable with that kind of ramp-up.
We've also been contacted by a company that has successfully commercialized their product in one market, have secured the rights to market and sell their product in a different market that is within our field of experience, and are seeking a licensing deal with us. This is both exciting and mildly distressing. In order for us to be successful in this venture we would have to raise $2-6 million before we can do anything. This is the biopharma industry, by the way, so these kind of numbers are not uncommon. It seems like both a massive challenge and a massive opportunity.
Has anyone had an experience like this? Any advice?
Wow, what a thread. Three posts by OP, each one a complete 180 of the post before it, each one just as absurdly over-confident. All in 3 weeks. The jargon is getting progressively better too. At least you're learning fast, I guess... I would recommend you take a step back and recognize that in 2 weeks, you will be shaking your head at you-from-2-weeks-ago's terrible judgement.
Sed dolorem beatae at praesentium. Aut blanditiis ut est enim asperiores provident. Aut perspiciatis beatae sapiente pariatur. Est aut rerum officia ad similique cupiditate qui ipsam. Perspiciatis aut qui impedit.
Unde est modi molestiae. Quos ratione porro minima. Dolorum et cum voluptas libero ut. Earum nulla ut voluptatem iure. Saepe laborum minima quam quaerat fugit qui error aut. Atque est repudiandae nam dolor laborum quam. Aliquam illo molestias odit suscipit voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...