How to pick the right medical start-up to invest in.
This is a question I am asked frequently. How do you pick the right start-up, whether to invest in or even to go work with. I have no magic formula and most of my decision is based on experience and gut, but here are some things to think about:
- Product, product, product: Is it filling a real clinical need or does it have a strong economic value for its customers that can be proven? How does a potential customer respond?
- Is that value easy to understand and to explain to your peers?
- Does the product show well in a demo/prototype environment? Will it be used clinically in a trial setting?
- Does the product fit well in a hot niche market? (Robotics, Augmented Reality, Artificial Intelligence, etc). Hitting a market at the right time increases value significantly.
- What are the goals and attitudes of the Sr Leadership team? Quick exit or a long haul will impact decision making and should be inline with your expectations.
If you have answered these questions and feel the opportunity is strong, research, research, research! Talk to clinicians or hospital administrators. Get to know how the brand that is being represented in the market (Brand begins with that first customer interaction regardless of the presence of a marketing strategy).
With so many companies to chose from, do your homework!