What You Need to Know About MedTech Startups and Product Development
Those of you in this space, or who have been in this space, know the unique challenge of launching a product (and company) in the MedTech domain. For those thinking about this space, or in the midst of working to build a MedTech startup and product, here are a few of the special challenges MedTech startups will face compared to creating a consumer, commercial, or industrial product:
1. Costs to develop a MedTech product are significantly higher than other kinds of products.
2. Product certifications for MedTech products take longer, even at the lower grades.
3. MedTech products are much riskier to produce than other products because of the need for high levels of reliability and accuracy.
4. Finding investors for MedTech startups is challenging; a much smaller subset of investors have tolerance for the risk.
5. Specialized skilled are needed to satisfy regulatory processes.
So, does all this mean one should avoid MedTech startups or going after MedTech product development? Of course not. As a society, everyone is looking for better ways to extend life, improve the quality of life, mitigate pain, reduce the severity and duration of disease, pain or chronic health conditions. Likewise, from a purely business perspective, there can be huge rewards associated with alleviating large scale medical issues.
This comes with a risk, and risk comes with increased uncertainty. This presents a challenge in establishing a realistic budget and schedule, along with recognizing and confronting the technical and IP challenges. The summation of the risks and challenges manifests itself in the difficulty of securing adequate funding to realize the vision.
Technology is redefining the future of healthcare. One should approach this with eyes wide open realizing the challenges ahead. Developing MedTech products is a marathon and not a sprint. Only the most persistent and compelling will survive.