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By The Time I’m 40

February 13, 2013 By Leave a Comment

Yes, I shared in an earlier post that I currently invest time with inventors and entrepreneurs. But by the time I’m 40, I want to be in a position to where I can invest meaningful capital in startups. I have about 2.5 years to achieve this big hairy audacious goal. How am I going to make this happen? My plan is multi-faceted:

  • Continue to invest time in early-stage ventures. Why? The assumption is that a few of these ventures will one day receive funding to pursue product development. Once this happens, CQ should be in a position to continue providing consulting support and be compensated, maybe even with equity opportunities. And maybe, just maybe, one of these funded ventures will have an exit and the resulting equity will have substantial value.
  • Bring UniDoc to market. This is a proprietary CQ software product geared towards helping medical device companies better manage design control and product development documentation and records. We’ve had a couple starts and stops and are at a point where we need to aggressively work towards launching this into the market.
  • Continue to provide consulting services, helping medical device companies with business development, operational efficiency, and project management.
  • Identify and launch other product ideas.
Yes, time is ticking but this is my BHAG. Why? Since starting CQ, I’ve come across several medical device inventors and entrepreneurs whom I think have decent ideas. However, funding, especially locally and during the last few years, has been basically non-existent. I think there are a few very good ideas that are dying due to lack of investment. I’d like to be in a financial position to help make a difference.

 

How?

Invest in them now, providing advice and consulting. Find opportunity or two with equity, resulting in exit.

Also, develop own products, starting with UniDoc.

Filed Under: All, Ask CQ, CQ Story, Funding, start-up, Strategy vs. Tactics, UniDoc Tagged With: , , , , , , , ,

Medical Device Accelerator in Memphis, TN

January 23, 2013 By Leave a Comment

The medical device industry has several geographic pockets. Memphis, TN is one of these, especially in orthopedics.

I recently read about this medical device accelerator located in Memphis called ZeroTo510. They seem to have all the key pieces for a medical device concept to get off the starting blocks. Part incubator, part educator, part investor, part mentor. The program is geared towards helping medical device inventors and entrepreneurs get to a FDA 510(k) submission, while providing guidance and direction along the way

While I have no idea how successful this program has been, the model is very intriguing. So much so that I wonder if something like this could be piloted in central Indiana.

Filed Under: All, Funding, Indiana Life Sciences, Product Development - General, start-up Tagged With: , , , , , ,

Would You Pay to Pitch?

January 16, 2013 By Leave a Comment

Earlier this week I received a couple emails asking if my company is interested in receiving investment funding. I’m not, but I was kind of flattered by the inquiries. At first, I hit was going to hit the delete button. Then I decided to read the emails a little closer. Okay, big surprise, I wasn’t really being targeted directly. The emails were more of a blast out to many people. Regardless, I still thought there might be some value. I know several startups currently seeking funding.

One of the emails was from Venture Summit West. I did a Google search for this organization because the email did NOT include a link or website. When doing so, one of the top search results was an article from Mendelson’s Musings. Apparently Venture Summit West charges startups and entrepreneurs to pitch at the event. And Jason Mendelson takes exception to this premise stating that an entrepreneur should not have to pay to pitch to investors.

I’m not sure how I feel about this concept. Part of me thinks that an entrepreneur / startup seeking funding should be more than willing to pay a reasonable fee to pitch to investors. I asked a friend and she agreed. She then asked how much this particular event costs. When I told her the fee, she thought it was a little steep. I’m not knocking Venture Summit West or other events that charge entrepreneurs to pitch. I still think that it might be worth it for an entrepreneur to pay to pitch to investors.

Let me explain. The event fee does a couple things. Mostly, it acts like a filter. Chances are paying to play will help ensure those applicants are serious. I think it also sends a message to the investors attending that these entrepreneurs are serious because of the entry fees ponied up.

Filed Under: All, Funding, start-up Tagged With: , , , , , ,

Medical Device Startups Need to Survive for the Next 3 Years In Order to Thrive

November 16, 2012 By Leave a Comment

We posted a couple days ago that there appears to be some debate about the state of the medical device investment market. The stance that I’m taking is this:

Funding for medical device startups is virtually non-existent in 2012, especially in Indiana and the Midwest.

I’m taking this stance based on personal observations and articles I’ve read. I hope this trend reverses. Now that the 2012 election is behind us, maybe things will improve.

I just read an interesting post about the state of the startup medical device investment market. The article from MedCity News suggests that the next 6-18 months will be bleak and probably get worse than we are currently seeing. However, there is some optimism suggested too. The longer term outlook for medical device industry (18-36 months) looks better. Further, a medical device startup who can survive these next 3 years will have a better opportunity to thrive 4 – 5 years from now.

 

Filed Under: All, Funding, Medical Device - General Tagged With: , , ,

Medical Device Investments: What Is The True Story?

November 14, 2012 By Leave a Comment

A couple weeks ago, I posted that medical device investments were at levels lower than 2004. Soon after posting Patrick Driscoll sent an article from MedMarket Diligence indicating medical technology investments are actually trending up.

Who’s right? Why do these reports differ in their messages and tone? Do you think medical device investments are on the rise or in decline?

Filed Under: All, Funding, Medical Device - General Tagged With: , , ,

Medical Device Investment Funding A Current Challenge

October 29, 2012 By Leave a Comment

I’ve noticed that for much of the past year that medical device investments seem to be down from previous years. I guess the third quarter of 2012 is the lowest dollar amount since 2004.

Will this trend reverse? Hard to say. But I suspect if it does, it won’t be anytime soon.

So what are medical device startups to do in the meantime?

I think we will start to see some very creative solutions for funding medical device startups. Some have suggested bootstrapping. I also anticipate crowdfunding might become an option.

There is a discussion on this topic on LinkedIn. If you have some thoughts, either leave a comment here or check out the LinkedIn points of view.

Filed Under: All, Funding, Medical Device - General, start-up Tagged With: , , , ,

Is Medical Device Funding In Midwest Really Picking Up?

August 1, 2012 By Leave a Comment

I’ve been reading quite a few blogs and articles about investment funding in the medical device industry. All reports seem to point to things being better than they’ve ever been–at least in recent years. And if I believe what I read, the Midwest, especially Indiana, is leading the pack. I plan to write more about this soon. I just have more research to do first.

Here’s what I do know:

  • I’m not aware of any Indiana-based medical device startups who have received venture funding any time recently.
  • Typical Indiana funding channels and resources for medical device seem to be very quiet and inactive.

What insights do you have on medical device venture funding?

Filed Under: All, Funding, Indiana Life Sciences, Medical Device - General Tagged With: , , , ,

Still Time to Apply to BioCrossroads Venture Competition

July 20, 2012 By Leave a Comment

July 31 is approaching quickly but still not here yet. That means you still have time to submit your application to the BioCrossroads Venture Competition. This is a contest for emerging life science companies and technologies.

You do not need a complete business plan to apply. In fact, the application process is pretty straightforward and does not take make time at all (I know because we applied for UniDoc).

If you are selected as a finalist, you will have to submit a business plan by August 24, 2012. The winners will be announced at the October 22, 2012 Indiana Life Sciences Summit.

Is it worth applying? First prize $25K. Second is $15K and third $10K.

 

Filed Under: All, Funding, Indiana Life Sciences Tagged With: , , , , ,

Contest for Healthcare Entrepreneurs

June 14, 2012 By Leave a Comment

Health insurer Independence Blue Cross is hosting an innovation challenge called IBX Game Changers Challenge to develop devices, health IT solutions, and education programs to promote healthy behavior. Ideas can be submitted until July 10, 2012. Winners are supposed to be announced by the end of July. The winners will get a $50,000 grant to help develop their idea.

While it looks like this contest might be limited to the Philadelphia / Independence Blue Cross coverage area, the concept is still interesting enough to share. Maybe other health insurance providers will embrace this concept too. Maybe the prize should be free health care for life. :)

Filed Under: All, Funding, Medical Device - General, start-up Tagged With: , , , , ,

June 7, 2011 – CHV Capital Cheers

June 1, 2011 By Leave a Comment
SAVE THE DATE FOR

CHV Capital “Cheers” event

—————————————————————————————————————————

An Informal gathering of Entrepreneurs and VCs

When:       Tuesday, June 7th, 2011 at 4:30pm

Where:     Euphoria at Buggs Temple
337 West 11th Street

Indianapolis, IN  46202

Detail: CHV Capital has organized a very informal, monthly gathering of entrepreneurs and VCs in the life sciences area, which we have modestly named “CHV Cheers”.  This is a happy hour, cash bar and hors d’oeuvres at Euphoria, the top floor of Buggs Temple (next to Fairbanks Hall, on 11th Street).

The goal here is to just have a place where people in the business can gather and talk informally; no program, no commitments.

Please join us if you can and feel free to bring a colleague.

 

Filed Under: All, Events, Funding, Indiana Life Sciences Tagged With: , , , ,

Looking for $?

October 26, 2010 By Leave a Comment

Are you an inventor and entrepreneur with an idea to change the world? Good.

Chances are you are looking for funding. Here are a few links to some recent articles on the topic:

The Most Important Question To Ask Before Taking Seed Money

4 Ways To Get Automatically Rejected By An Angel Investor

The Venture Capital Checklist

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Filed Under: All, Funding, start-up Tagged With: , , , ,

The i6 Challenge

June 24, 2010 By Leave a Comment

The IURTC is taking the lead in preparing a grant application for a new program from several federal agencies led by the Economic Development Administration, called the i6 Challenge. This grant is a new $12 million innovation competition administered by the Economic Development Administration (EDA) of the U.S. Department of Commerce, in partnership with the National Institutes of Health (NIH) and National Science Foundation (NSF).  EDA will award up to $1 million to each of six winning teams with the most innovative ideas to drive technology commercialization and entrepreneurship in their regions.  NIH and NSF will award a total of up to $6M in additional funding to their Small Business Innovation Research grantees associated with winning teams.

i6 Challenge Goals: to accelerate technology commercialization and new venture formation as a driver for economic growth and new job creation.

One of the grant requirements is to leverage regional strengths. We feel one of Indiana’s strengths is in the willingness of community individuals and businesses to get involved in innovative solutions to statewide challenges. We would like for the companies that are members of INpact and the medical device community to play a role in bringing this program to fruition.

Application Deadline: Mid-July

If you do decide to get involved, we will only need a one page letter of participation to submit with the grant. We encourage entrepreneurs, investors, universities, foundations, and non-profits to participate in the i6 Challenge.

For more information, please go to www.eda.gov/i6

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Filed Under: Community, Funding Tagged With: , , , , , , , , ,

Entrepreneurial Funding Gaps in Indiana

June 14, 2010 By Leave a Comment

The more we meet with entrepreneurs looking for funding, the more notice a trend toward a gap in funding.

Currently in Indiana, investors are not very active. VCs have always been conservative, but are even more conservative now and rather than leading the pack in investing, they are focused on late development or post revenue opportunities. Actually, this includes Angel Investors as well. Where do entrepreneurs go to find funding?

There’s always the traditional grants, but they are not typically large enough to be the only source of funding for most entrepreneurs.

What about the 21st Century Fund? This can be a great source for funding, but job creation is a huge metric for the 21st Century Fund, so they are looking for near revenue stage companies that will be profitable within 12-24 months roughly.

A simple medical device (including pharma) takes 3-5 years on average from concept to development. So, there’s quite a predicament for those start-up entrepreneurs looking for funding for their newest, greatest device.

IF you can survive and are revenue generating then you qualify for funding – the rest of you need to be creative in how you raise funds. Other options for you might include: friends, family, and/or personal individual investors.

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Filed Under: Funding, Indiana Life Sciences, Medical Device - General, start-up Tagged With: , , , , , , ,

Economic Dev Corps Should Pay More Attention to Community Foundations

June 3, 2010 By Leave a Comment

Last week, Mike Hicks wrote  column about how lucky Indiana is to have so many community foundations and how they help our economy. Here is what we took away from that article.

Indiana has many things going for it and the expansive network of community foundations is among the most important, in our opinion. Indiana has more than 90 community foundations throughout the state. And unlike other organizations, the community foundations focus their efforts on better understanding how to impact their local economies and improve the quality of life for their residents.

Community foundations are able to focus on the community specific grants that larger organizations cannot. Here are a few advantages community foundations have over larger organizations because they are close to the community they serve:

  • they understand those they support, so potentially, those who do good work versus those who write good grants can get more funding.
  • they fill the gap between publicly and privately provided services – they know where the unmet needs are.
  • they act as a lifeguard for their communities by bridging funding for orgs that face potential short-term financial problems.

So, what better partnership could the IEDC and other economic development associations/organizations have than with their local community foundations? We would argue that Economic Development Corps. that are focused on how to boost and strengthen their local communities/economies need to rethink their partnerships with their local community foundations.

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Filed Under: Community, Funding, start-up, Strategy vs. Tactics Tagged With: , , , , ,

Venture Capital vs. Boot Strapping

May 28, 2010 By Leave a Comment

Venture capital (also known as VC) is a type of private equity capital typically provided for early-stage, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made in cash in exchange for shares in the invested company – typically those in the high tech or biotech industry. Venture capital firms typically comprise small teams with technology backgrounds (scientists, researchers) or those with business training or deep industry experience who pool their money.

Bootstrapping refers to a self-sustaining process that proceeds without external help. Therefore no VCs are involved and the company is built on it’s own and is the most common way to create a start-up. In fact, the use of private credit card debt is the most known form of bootstrapping. There is considerably more risk for the founders when bootstrapping, but the absence of any other stakeholder gives the founders more freedom to develop the company. Hey, if Dell can do it so can you!

There are different types of bootstrapping:

  • Owner financing
  • Minimization of the accounts receivable
  • Joint utilization
  • Delaying payment
  • Minimizing inventory
  • Subsidy finance
  • Personal Debt

SO, our question is this — does the kind of money you receive affect your company’s trajectory & it’s milestones? What are your thoughts?

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Filed Under: Funding, Medical Device - General, start-up Tagged With: , , , , , , , , , , , ,
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