28 Apr How to attract investors within orthopaedics

Developing new products, expanding into new geographic regions, and meeting regulatory requirements all necessitate capital investment, which can be money raised in the form of equity or debt.

Access to capital is a major constraint for some medical device suppliers, and it may be difficult to expand geographically or enter new markets as a result of this, or to even get their innovative product approved and marketable. There are several methods for raising capital, each with its own set of relative advantages and disadvantages.

Finding the best investors can be difficult for early-stage companies and small and medium-sized businesses. The right finance partner can provide access to capital, expertise, and networks that can assist a company in meeting its growth objectives. The difficulty for start-ups is finding the right finance partner, which can be challenging as there are many different types of finance available. Although finance is typically the main driver for sourcing investment, the expertise of the financial partner is crucial to early stage companies – bringing a wealth of knowledge and network of support.  

We understand the specific requirements of businesses seeking to raise capital. We have a thorough understanding of the medical technology investment market, which allows us to find suitable financing partners for our clients. We use our network of contacts and research specialists to identify suitable partners who can help companies achieve their growth goals, and we work closely with our clients to provide advice and support throughout the fundraising process which will ultimately help them achieve their goals, whether this is regulatory financing, paying operating costs, or acquiring new businesses.

A shared vision and philosophy

There are several factors to consider when looking for investors for early stage medical device companies. One of the most important factors is the investor’s ideology, which influences the type of returns the investor seeks. It is important to identify the investors who share their goals and philosophy, which can help save time and avoid potential disagreements later on.

A tailored approach

When developing investor profiles, one of the first things we look at is the investor’s typical investment criteria. This allows us to better understand what the investor is looking for when evaluating investments. Each investor has their own set of criteria for deciding which companies to invest in, and it’s critical to understand what these are so that the company can tailor their pitch to meet the investor’s needs.

Relationship building for seamless introductions

To identify the best option for our clients, we take the time to understand the investment firms’ investment strategies, typical deal structure, continued-support approach, and term length. This assists us in developing relationships with our partners, allowing us to craft a strong pitch and ensure the fundraising process runs as smoothly as possible. We also make certain that our goals for future relationships are aligned with those of our partners, which allows us to build mutually beneficial relationships that can last for years. 

A highly regulated industry  

To ensure the safety and efficacy of technologies, the medical device industry is highly regulated. This presents a number of challenges for companies seeking to raise capital. The first challenge is ensuring that the company’s products are in accordance with applicable regulations. The second challenge is ensuring that the company can meet the regulatory agencies’ stringent requirements. These regulations require significant investment of time and resource for clinical trials, testing and certification, and technology systems for recording and reporting.

Building a strong team, hiring the right people, and scaling the business are all critical to the success of a business. Young companies require capital for these critical stages when raising capital, which can be difficult to fundraise without the right investors. Our industry experts can identify the best investors to assist businesses in bridging the gap between obtaining the capital they require and achieving their growth objectives.

Suzanna Everard, M&A and Investment Manager

Suzanna is the M&A, Investment and Research Manager. She delivers all transactional-based projects by supporting clients either sourcing investment or looking to undertake M&A activity for growth (buy-side) or final exit (sell-side).

Leading the in-house research team for all functions of the business producing bespoke reports and insight for the industry, Suzanna previously worked for an M&A sell-side advisory firm, supporting over 70 clients across multiple sectors.

For more information on how we could help support your growth, please contact Suzanna Everard or visit our capital investment page, here.

Contact Details

LinkedIn: Suzanna Everard

Email: suzannaeverard@orthocg.com