A look at the applications for MedVentures2010 brings a
few interesting trends to light. Reviewing the applications
encourages those of us who deal with startups to begin looking at
the possibility that things just might be taking a turn for the
better - FINALLY.
NTEC received in excess of 50 applications for 8
presenting spots. That is more than twice the eligible applications
we received last year. We responded by adding two spots for a total
of 10 pitches at the conference.
Southwest and
beyond:
Our 47 eligible applications are split into 35 from Texas,
7 from out of state (California, Florida, Indiana, New York,
Tennessee) and 5 international companies (India, Israel,
Germany).
Within Texas, most are out of the DFW region (26), the
other 9 come from Austin, Houston, Galveston and San Antonio.
Notably, Austin had 6 applications.
Funding found &
sought:
The companies are overwhelmingly pre-revenue companies
looking for an angel/VC round about twice the size of the capital
raised to date. In other words most of these companies have
received a sizeable initial investment and they are seeking to add
to that to continue growing.
There is huge diversity in funding received to date and
funding sought. Funding to date for individual companies ranges
from mostly sweat equity to $15M raised to date. The typical
company applying this year has raised $650K to date.
Funding sought ranges tremendously as well. The "asks"
range from a few hundred thousand to $20M. The typical applicant is
looking for $2.75M, with quite a few looking for $3M-$5M. Hence
they are right between a typical angel and small VC round. With
angels syndicating deals, $3M rounds are becoming entirely
feasible. On the other end of the spectrum, some VC firms are
opening up to purposing fewer dollars for the right deals as
well.
What's
hot?
Software, Dental, Telemedicine and Home-health/remote
monitoring are among some of the hottest offerings. Additionally
chronic disease management, diagnosis and cancer treatment methods
are important fields in which we have identified significant
sustained interest too.
However, sexy doesn't necessarily mean success. Stents,
surgical gear and spinal disc solutions remain strong and continue
to bring innovative fundable deals to the forefront.
While chasing grant dollars and ETF funds has become a
necessity for many, traditional private funding remains the best
metric for potential success in the future.
We wish all the applicants success with their ventures, no
matter whether they are chosen to present at MedVentures2010 or
not. Without exception, these are companies addressing problems in
the market that can ultimately save and improve live when
implemented. All have worked hard to get to where they are today.
We hope that as many of these 47 as possible will choose to attend
the conference.