EMDT_European Medical Device Technology

European Medical Device Technology, Spring 2014

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12 | Spring 2014 European Medical Device Technology emdt.co.uk newstrendsanalysis Start-ups need venture capital to grow and get their innovative products to market, but the funding environment for medtech companies has become increas- ingly challenging. EMDT recently spoke with Bernd Goergen, senior investment manager at the German venture capi- tal company High-Tech Gründerfonds (HGTF), about the venture capital mar- ket for medtech start-ups and the pre- dominance of American VC companies. You're part of the team at High-Tech Gründerfonds (HGTF) that handles life science investments. What does a com- pany need to do to successfully raise venture capital? Goergen: It should not have a technol- ogy that is in search of an application. The technology should rather be the solution to an existing problem. Moreover, if possible, the technology should be protected by a patent. The founding team should have diverse professional backgrounds. Founders, who only have experience in science or medicine, often lack the ability to cre- ate a professional business plan, sell the business idea to investors or establish networks with potential development partners. You should be geographically flexible; if necessary, your company has to go where funding and investors are. The founders should contact investors very early, pos- sibly even in the seed stage. Companies should seek guidance from larger, more experienced companies in order to, for instance, rule out design errors or to get a better feeling for the future market accep- tance of their product. A lot of money is flowing into Internet and IT start-ups. What are currently the odds for companies in the medtech sector to gain access to venture capital? Goergen : Sure, we see comparatatively large rounds of financing in the IT sector. But I did not feel that the medtech sec- tor suffers because of that. It is generally L I L I CO CO N E E N E E C R O O L D I N G S I S I L M I M O M O ri g i n a l s i z e O r Come closer. This is a silicone micro-component weighing less than 10 mg! High-precision in undercuts and recesses, and now suitable for serial production and two-component technology. www www www www www www w t st st st st .st .st st l arl arl arl arl arl arl a im im im- im- im- im m t ste ste ste ste ste ste sterne rne rne rne rne rne ner. r.com com com com com com edtec Eur o pe St uttgart 03. – 05.06.2014 Hal l 5, Stand 5H24 Bernd Goergen, senior investment manager, High-Tech Gründerfonds (HGTF) Raising Venture Capital in a Challenging MedTech Market ES430948_EMDT1405_012.pgs 04.29.2014 03:39 UBM black yellow magenta cyan

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