Growing Companies--Part II
This article was originally published in Start Up
Offering a wide range of shared services, operational expertise, and senior executive mentoring, incubators are catching on in the medical device industry, helping to jump-start what might otherwise be a sluggish new-company creation. As they mature, incubators are also increasingly forging formal ties with venture funds, to help ensure that their early-stage projects will get funding at least through Series A. Indeed, the connection between incubators and private financing has always been strong, though the current dismal financing climate for medical device firms offers only a partial explanation for the growth of incubators. Incubators are also finding a place because of the need on the part of big companies to replenish product pipelines, providing both a source of new technology and, at the same time, an alternative to big-company efforts to develop new products from external sources. Though they share some common characteristics, the range of models and approaches taken by different incubators actually varies quite broadly, as a closer look at several of them shows in this second of a two-part series.
You may also be interested in...
In Europe, a Medical Device Accelerator Takes Root
Device giant Medtronic and venture capital leader Sofinnova have teamed up to see if they can help seed the promising ground of device start-ups in Europe, providing an outlet for novel ideas of the continent's physicians.
Evalve: Leading the Valve Revolution
Full-scale commercialization of percutaneous heart valve technology is still years away, but Evalve's new approach to mitral repair is closest to the clinic.
FlowMedica: Making Renal Failure Real
For a selelct group of patients undergoing interventional procedures or cardiac surgery, the risk of acute renal failure, caused by the body's inability to flush out high doses of contrast agents, represents a major, and potentially life-threatening complication. FlowMedica hopes to make prevention and treatment of acute renal failure a standard of care with an innovative technology that links drug and device therapies.