The Medtech New Ventures 2009 conference was hosted in Frisco, Texas, on July 29, 2009, by the North Texas Enterprise Center for Medical Technology (NTEC). The event is an annual, regional, early-stage investment conference, and showcased companies focused on the rapidly growing medical technology sector. This sector, includes medical instruments and devices, diagnostic equipment, medical therapeutic devices, medical monitoring equipment, and other health-related products. The program included an angel investor panel discussion, a venture capital panel discussion, and a showcase of six promising emerging medical technology companies.
The purpose of the conference is to connect quality emerging medical technology companies seeking capital with investors that focus on their industry sector. In addition to investment opportunities, the conference strives to deliver useful, timely, and relevant educational content to medtech entrepreneurs and to those that service the medtech industry. Finally, Medtech New Ventures Conference provides a "trade show" venue for vendors and service providers seeking to exhibit their capabilities at the conference. The 2009 conference drew over 300 attendees.
The angel panel was composed of representatives from various angel groups in Texas, and gave insight into the current state of affairs. Good deals still get funded; although valuations have dropped significantly since last year. Nuggets of wisdom shared included: "Don't worry if your pitch falls flat. Even President Obama only got 52 percent of the vote. Your deal will get funded," and "The best thing the entrepreneur can do is create competition for the deal," and "I'm a CPA. I don't look at forecasts because I know what they're made of."
Caroline Gagliardi, of Price Waterhouse Coopers gave the Q2/2009 Moneytree report, which reflected the current funding drop that all early-stage companies feel these days. Venture deals were down all around.
The venture panel was composed of venture capitalists from across the nation, some specializing in medical and healthcare investments. Sevin Rosen , HP Growth Partners , Sante Ventures , Chrysalis Ventures , H.I.G. Ventures , and PTV Sciences were represented. The panel elaborated on the fact that most VC firms are sitting tight, reserving cash for follow-on rounds, and have only gotten more conservative with their investments over the past year.

Of the six presenting companies chosen from a pool of applicants, two were from North Texas, three from Central and South Texas, and one from Michigan. The presenting companies and their technologies were: Hygieia, an innovative glucose-metering company; Microtransponder, a wireless neurostimulation solution; Stellarray, a flat panel x-ray source; MDConnection, a specialty-specific practice management solution focusing on dermatology; Sironics, an implantable wireless heart-monitoring device; and Traumatec, a portable brain-cooling device for emergencies. All companies were selected by a jury and were required to submit to a thorough review as well as a mandatory rehearsal session with medtech and presentation experts.
While the PWC Moneytree report touched on the funding situation nationwide, Mike Lockerd's presentation reported on the progress being made by one steady funding source, the Texas Emerging Technology Fund. This fund, which is a state investment fund for promising technology-based start-up firms in Texas, has over $200 million allocated for investment and has made close to 100 investments. In addition, Texas has set aside $3 billion for the newly formed cancer prevention and research institute, which will invest $300 million annually in research over the next 10 years.
The event was a thoroughgoing success and served to inform the Southwest region about the current state of affairs in medical technology and seed stage investments.

This year's conference, MedVentures 2010,  will feature a full day program with 8 presenting emerging startup companies. There will be investor panels composed of VC's and angel investors and a health care policy update focusing on medical devices. It will take place on July 21, 2010 and we expect to exceed 400 attendees.

• Section 412 and 413, Adjusting the Accredited Investor Standard for Inflation. As currently written, this section could result in the elimination of as many as two-thirds of all accredited investors who invest directly in start-up and early-stage small businesses.
• Section 926, Authority of State Regulators Over Regulation D Offerings. This section could make it more difficult to raise angel capital from investors in different states, make it unclear what entities regulate angel investments, and introduce potential lengthy waiting periods for businesses to receive their capital, possibly resulting in the death of those businesses.

Fortunately, it appears as though the very loud voices of some key organizations were heard.  The Angel Capital Association and the National Association of State Venture Funds formed a coalition as did numerous other organizations that support entrepreneurs, including our industry group, the National Business Incubation Association.  Letters were sent to the author of the Bill, Senator Christopher Dodd (D-CT), suggesting several changes and in response to those concerns,  two amendments have now been initiated:

• Section 412: Adjusting the Accredited Investor Standard
  The threshold for "accredited investor" would stay the same as they are currently, although the standard for net worth of $1 million would now exclude the investor's primary residence. While the coalition of associations would have preferred no adjustment to the standard for angel investors, we believe this is a good compromise.
• Section 926: Regulation D Offerings                                                The amendment deletes all previous language and disqualifies individuals who have been determined to be "bad actors" by Federal and State authorities from using Regulation D 506 private offerings.

We will all need to continue to do our part to ensure that these changes make it into the final version of the legislation.  It is also important for those of us who support entrepreneurship to scrutinize and take action against any future proposed legislation that might negatively and materially affect such an important part of our national economy.  Thanks to all who mobilized, showed leadership, and took action to push forward  the amendments.

2009 MedVentures finalists/presenters - top row from the left: Mark Eaton (Stellarray), Frank McEachern (Microtransponder), Susanne Richard (Traumatec), bottom row: Eran Bashan (Hygieia), Patrick Kelly (Sironics) & Clark Terrill (MDConnection).

What a year it has been for these 6 companies! In total, they raised almost $15 million dollars between last summer and today. This is especially remarkable since all but one of these have no revenue yet. Pre-revenue companies have had a particularly tough time raising funds in this economy. We believe this is a strong testament to the quality of the presenting companies. It is a sign of the times that almost half of this money was raised through successful grant writing and partnerships that allow these companies to move forward with their research and development without diluting their existing shareholders. Additionally, two of these companies, Microtransponder and Stellarray, are also ETF recipients.

Several, including Traumatec and Stellarray are actually fundraising again, or are in due diligence for another round. Among the many accomplishments that are of note for these companies are:

• Hygieia received 510 (k) clearance for their glucose monitoring platform, and launched a third clinical trial after successful completion of #2;
• Microtransponder's issuance of a critical patent to their technology as well as significant grant & angel funding;
• Stellarray's successful grant issuances, prototype of a blood transfusion irradiator and R&D contract to work on a wastewater treatment solution;
• MDConnection's 1st million of revenue;
• Sironics completed the production prototype;
• Traumatec is continuing their major Baylor study and is getting ready to participate in three new device studies dealing with traumatic brain injury, stroke and emergency rescue respectively.

  We are experiencing a significant increase in interest to present at this year's conference and have increased the presenting spots to 8, with a possibility to go up to 10. We know that it will be tough for our committee to pick the winners out of this competitive crowd this year. 2009 was a record year for the NTEC team, with an all time high of over 150 business plans reviewed. Entrepreneurs continue to inspire us and reaffirm that NTEC's services can play a critical role in their successes.  We hope that this year's presenters will do as well as last year's group did in the world of fundraising and post-conference success and wish our last year's presenters all the best for 2010.

  Presenting company application deadline is 5/31/2010. No cost to apply.

• Application Guidelines: /media/11290/medventures%202010%20presenting%20company%20application%20guidelines.pdf

• MedVentures 2010 Information: /medventures2010

• Video of MedVentures 2009: http://www.youtube.com/watch?v=YIYfaZ2S3SE

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.

The Rice Alliance for Technology and Entrepreneurship hosts one of the premier conferences is our region: The "Life Science Technology Venture Forum". It took place for the 9th time yesterday and was full of insightful and interesting presentations and startup pitches. There are two groups that get to present. The first group is preselected and has 5 winners (5 business plan presenters). These get to present their business. They have 10 minutes to present with 2 VC giving feedback immediately after each presentation. 

Then, out of a pool of 36 elevator speech presenters, another 10 winners are chosen based on the quality of their pitch. This part is judged live during the afternoon and the outcome is announced at the conclusion of the conference. Startups can present their companies at tables afterwards.

5 Business Plan Presenters and Rice Alliance "Most Promising":

America Stem Cell, Inc

Encore Vision, Inc

LaserGen, Inc

Nimbic Systems, Inc,

Vapogenix, Inc

My favorite among the main category winners was Encore Vision. Bill Burns, is the CEO and is a seasoned veteran in the eye care industry. He has the right mix of credibility and he presented a tremendous opportunity which he delivered flawlessly. Encore Vision is developing a treatment for presbyopia, or an inability to focus on objects close by. We all are subject to this condition with age and use bifocals or readers to make up for that. His technology softens the lens and allows it to be more flexible. The obvious worry, also brought up by the VC's giving feedback, is that one could soften it too much.

I also liked Nimbic Systems which addresses the problem of deep seeded infections during surgery. Whether surgeons like to admit it or not, infections happen even to the most careful surgeon. The air barrier could be an easy, cost effective way to avoid such infections, or at least reduce the likelihood. Potential problems to be addressed are how to deal with potential dehydration of the surgical site and VC's (and I) also wondered how big a trial would have to be to prove efficacy. The theory and preclinical tests are easy to accept - makes sense.

Elevator Pitches:

The 36 elevator pitches took 90 seconds and the judging was more based on presentation skills then actual company viability. It should be enough of a teaser to get you interested in the company and get you to follow up by coming by the booth. These

10 elevator pitch winners who impressed the judges by their ability to peak their interest:

Waldo Health

HPT/Axis, Inc

Respiratory Research, Inc

Medhab, LLC

Ortho Kinematics, Inc

Soft Imaging, LLC

PCCA Technologies, Inc

CB2 Pharma, Inc

Ischemic Conditioning Therapeutics, Inc

Norwell, Inc

Here some on the company opportunities that peaked my interest (both by presentation and overall opportunity).

I was impressed by PCCA Technologies, a glucose level indicator, built into a contact lens. The color change, discreetly hidden at the bottom of the lens, would indicate glucose levels. The question of course would be how accurate, rapid and reliable the method could be and if it would be able to serve as an enhancement to current glucose meters or as a standalone method to measure blood glucose. Fascinating idea however.

Corinnova remains an interesting solution for the complex problem of congestive heart failure. The compelling need and paucity of viable alternative solutions for this disease make it a player in a field that is starved for a real leap in disease management.

Ischemic Conditioning is an interesting twist to a benefit derived simply from applying their technology to the benefit of heart attack and stroke victims. Every bit helps in these conditions and this could help reduce tissue damage in those acute settings.

Medhab is addressing a real problem too. After knee or hip surgery, this device could help improve recovery times by applying a method to gauge the right amount of weight distribution during this sensitive time, potentially avoiding re-injury and reducing recovery time.

Ortho Kinematics' "Kinegraph Vertebral Motion Analyzer" allows a surgeon to finally apply standard diagnostic measurements and thereby guide therapy and new device/hardware development in spine therapy.

Waldo Health is positioned to become a leader in telemedicine for chronic disease sufferers. The simple terminal would allow tighter management of these conditions, improving care and reducing cost. Execution is going to be key here.

There were many more worthy companies at Rice. I was very impressed with the event, enjoyed judging and look forward to next year. Next month will be our MedVentures 2010 conference here in North Texas (Frisco). We have had twice as many applications as last year with over 50 companies. 10 winners will be announced in June for business plan presentations and another 10 are being selected for elevator pitches. Stay tuned for the announcements. Interestingly, there is very little overlap between our 50 applicants and the 41 that presented at Rice. So be ready to see what North Texas has to offer.

It took over 20 of our scientific and business advisors, who served as reviewers, to get to this. After all scores were submitted and the final tally is in, we are happy to announce our top 10 presenting companies at Medventures 2010.

These companies' products address a very diverse group of diseases, problems and challenges with unique and innovative solutions. From early heart attack detection to advanced - next generation - stent technology. From cervical cancer detection to prostate cancer treatment. Giving patients more freedom in their everyday lives by creating portable insulin solutions and self catheterization devices. Allowing doctors better and safer ways to intubate, diagnose spine disease and more convenient ways to replace teeth. Gaining easy and convenient access to doctors is the goal of another top 10 presenter.

The scores were so close and the submitted business plans so compelling that we decided to create a second group of 10 quick pitch presenters which will be announced closer to the conference. But first things first. Here the top 10 companies which will present their full business plans at MedVentures 2010 on July 21, 2010.

Adapta Medical, Inc. has developed several innovative disposable urological medical devices for inpatient and outpatient applications reducing catheterization time and infection rates.

Aequorea Vision Medical, Inc. has developed technology which will allow for the identification of cervical cancers caused by HPV and other cancers in real time. 

Heart Test Laboratories Inc. has developed a proprietary patent pending device to identify myocardial abnormalities-ischemia, which is reduced blood flow to the heart muscle. This product can help in the early detection of heart attacks.

Kewl Innovations, Inc.'s small, lightweight Kewl device offers users an untethered and rechargeable device which controls and monitors the temperature of insulin on a single charge for up to 3 days in various environments.

Magaw Medical, LLC created the "CoPilot", a cost-effective and improved video laryngoscope that will raise the airway management standard of care. 

Nanospectra Biosciences, Inc. has developed "AuroLase Therapy", which may allow the focal treatment of prostate cancer, treating only the tumor affected areas and reducing the side effects associated with current therapies

Natural Dental Implants, AG has developed a non‐surgical tooth replacement system that enables general dentists to replace teeth non‐surgically in a single appointment, thus reducing the time, cost and inconvenience associated with current techniques.

NetMed Care, Inc.  is creating NetMed Care eClinics, a branded service that will change the way healthcare is delivered by creating access to quality health care, at reduced costs, for multiple market segments through a unique telemedicine solution.

OrthoKinematics, Inc.  has launched the "KineGraph VMA", a new functional test for the spine that helps spine surgeons make better decisions to improve their surgical outcomes.

Palmaz Scientific, Inc. has developed proprietary nanotechnology based methods that are providing a potential game changing technology platform for the future of implantable medical devices.

With one week to go, it is time to give an overview of our 20 presenting conpanies at MedVentures 2010. First up are more detailed descriptions of the Top 10 presenting companies. These will give business plan presentations that will last a little less than 10 minutes.

Announced here are the 10 companies which have been chosen to participate in the quick-pitch. As mentioned earlier, these companies got excellent evaluations from our advisors but didn't make the top 10. With scores extremely close, we want to give these 10 an opportunity to get some regional exposure as well. These companies will participate in 90 second quick-pitch (or elevator-pitch) presentations. There are 2 blocks of 5 companies for each group. Regardless of how much or little time they have to present, you can seek any of the 20 out at their exhibitor tables throughout the whole day. You can see that the second group contains a wide variety of medical technology startups from cancer diagnostic technology to imaging, and from software to rehab focused devices.

At the conference, you will receive a handout with overviews of these firms and with detailed contact information.

Top 10 Presenting Companies
	Adapta Medical, Inc. develops and patents innovative disposable urological medical devices. These products serve both inpatient and outpatient consumers. Adapta Medical has 3 issued patents, 18 pending patents, and 5 provisional patents. Several additional provisional patents are to be submitted in 2010. Adapta Medical products address multiple needs not being met in the market today. Individuals with limited dexterity cannot use any of the intermittent catheters currently on the market. Our products will allow people with limited and even those with absent dexterity to perform self-catheterization for the first time. This includes individuals with spinal cord injury, multiple sclerosis, stroke, and many other medical conditions. Hospitals are currently using 50-year-old catheter technology that is time-consuming and leads to infections. Hospitals are now financially penalized if a urinary tract infection develops during a patient's stay. Adapta Medical is the solution that will advance urological healthcare and revolutionize the worldwide market.
	Aequorea Vision Medical is commercializing a breakthrough medical technology that will revolutionize the diagnosis and treatment of Human Papillomavirus (HPV), Bovine Papillomavirus (BPV), and potentially cervical cancer. AVM™ SureScreen System allows physicians and veterinarians to SEE AND TREAT, meaning that they can visually identify and instantaneously treat cells damaged by HPV (the now known cause of cervical cancer) and treat animals infected by BPV before cells have the opportunity to become life threatening. Aequorea Vision Medical is dedicated to revolutionizing cervical cancer and BPV screening tests. With AVM™ SureScreen technology we have the potential to save billions of dollars and millions of lives.
	Heart Test Laboratories Inc. (HTL) is a rapidly developing medical technology company concentrating on inventing life saving devices to identify myocardial abnormalities (a restriction of blood flow to the heart), including Coronary Arterial Disease (CAD). Heart Test Laboratories is in the final stages of releasing its new patent pending screening device, the MyoVista™, a portable, inexpensive, non invasive diagnostic test used to determine the presence and level of myocardial abnormalities and the obstruction of coronary arteries. Heart Test Laboratories MyoVista™ technology incorporates three-dimensional mapping of the heart through proprietary algorithms that continuously multiplex each of the ten surface electrodes. The MyoVista technology is derived from one to two million points in the myocardium, and since 2003, over 50,000 patients have been correlated with the MyoVista Technology to determine the presence and level of myocardial abnormalities.  A recently completed clinical trial showed an 88.9% correlation to an invasive angiogram.
	Kewl Innovations is creating a new dynamic for people who use Insulin or other medication that require strict temperature management.  The small, lightweight Kewl device will control and monitor the temperature of medications over several days in various environments on a single charge.  For the first time, individuals who use temperature-controlled medications will be free from refrigerated devices, gel packs, ice chests, or other restrictions, giving them untethered freedom to live active lives. Kewl's patent pending software ensures maximum battery life and provides an easy to understand index that accounts for product shelf life and storage temperature.  Utilizing nanotechnology, advanced software, and rechargeable batteries, the Kewl device controls and monitors medication temperature over several days in various environments.
	Magaw Medical is a Fort Worth-based medical device company that has developed the new standard of care for airway management. Fifty million people worldwide have breathing tubes inserted into their airways each year. The 70-year-old device traditionally used does not provide clinicians with the best view of the vocal cords. This puts more than 3 million people each year at unnecessary risk for complications that can include brain damage and death. Magaw has improved the traditional device with the addition of a camera and video display. We provide a cost-effective device that gives clinicians the best view of the vocal cords, significantly decreasing the risk for patients. That functionality, combined with other patent-pending features, improves ease of use, improves patient safety and diminishes the likelihood of cross contamination between patients. Founded by clinicians, for clinicians, Magaw provides a cost-effective device that establishes the new standard of care for airway management. No clinician can afford to be without Magaw.
	Nanospectra Biosciences is a private company focused on the development of AuroLase® Therapy for the minimally invasive treatment of solid tumors.  Nanospectra has is raising funds to commence a clinical trial of the focal treatment of prostate cancer, a follow-on to an ongoing clinical trial for the treatment of refractory or recurrent head and neck cancers under an approved Investigational Device Exemption (IDE) in the US.  AuroLase Therapy utilizes systemically delivered particles to precisely direct the thermal destruction of solid tumors using laser energy, and is broadly applicable to other solid tumors such as brain and pancreatic cancer.  Nanospectra was founded in 2002 based on technology developed at Rice University and has licensed or owns a broad patent portfolio related to nanoparticle-based cancer treatment, imaging, and industrial applications.
	Natural Dental Implants™ AG, located in Berlin, Germany, is an early-stage dental technology and services company with a disruptive, patented system for replacing non-functional teeth with anatomically shaped prostheses rather than surgical dental implants.  The REPLICATE™ Non-Surgical Tooth Replacement System enables General Dentists to replace teeth after extraction non-surgically in a single appointment, thus reducing the time, cost and inconvenience associated with current techniques.  Patients receive an aesthetically pleasing, replicate tooth (root and crown), that is functional the day it is placed.  To date the Company has received about 700,000 Euro in equity financing and is currently seeking equity financing in the amount of up to 1 million Euro to continue product development and validation and to prepare for market entry in 2011. The equity received will be leveraged by German government grants and non-dilutive, debt based fostering instruments.
	NetMed Care is a branded, trademarked service, created by Advanced Medical Alliance, a Texas Corporation, that will change the way healthcare is delivered.  NetMed Care creates small on-site medical clinics, called eClinics, that offer enhanced access to quality medical care at a price 30-35% less than a traditional doctor office visit. NetMed Care uses current, cost-efficient, plug and play hardware and software components, integrated in a proprietary manner and delivered over the internet. It partners with caring, Board Certified doctors and nurses, to deliver a patient centric medical service that is customized by the patient's demographics, lifestyle, heredity and prior medical history. Plus, NetMed Care treats the patient and educates the patient which results in a positive experience and repeat visits. NetMed Care is a scalable service that can change the current doctor-care industry and deliver higher margins and higher utilization.
	Ortho Kinematics, Inc. is a spine diagnostics company focused on spine motion analysis products and services. Back and neck pain is widely prevalent in the population, and is notoriously difficult to pinpoint the exact anatomic cause, using the current standard of care. This diagnostic gap can sometimes be the source of wasted health care dollars and ineffective treatments. Our solution is the KineGraph VMA (Vertebral Motion Analyzer), an automated functional diagnostic test for the spine that uses fluoroscopy to capture the spine in motion, producing patient-specific graphs of the kinematics for each vertebral level. The KineGraph VMA replaces the outdated method of using static x-ray images of the bending spine to evaluate spine function.  Ortho Kinematics, Inc. is a company of seasoned entrepreneurs dedicated to improving the quality of spine diagnostics testing.
	Palmaz Scientific has a long history of pursuing the research and development of advanced metallurgical surface nanotechnologies for the manufacture of implantable medical devices. Today by applying remarkable discoveries and advancements, Palmaz Scientific is furthering the research, development and commercialization of advanced metallurgical surface nanotechnologies for the manufacture of implantable medical devices with superior design and biocompatibility that outperform alternative treatments and products in a myriad of applications including neurology and orthopedics.

Quick-Pitch Companies
	Andro Diagnostics has developed a diagnostic test for prostate cancer that requires only that a man express some semen, put it into a cup, and send it frozen to a reference lab. In a later version (now in development) the test "chips" will be built into the collection cup, the man has only to wait 5 minutes to see his result, at home. The diagnostic home test will give two results, either "Healthy," or "See a Urologist." The total addressable market in the US is 50 Million men, and the cost of goods is quite low.
	CardioMag Imaging, Inc. (CMI) is a privately held medical device company founded in 1999 and is engaged in the development and commercialization of a unique cardiac diagnostic device known as MagnetoCardioGraphs (MCG), providing Heart Health Graphics. This device integrates highly sophisticated proprietary sensors, electronics, and software. The MCG system is a non-invasive cardiac medical diagnostic device, providing unique and clinically relevant information about heart function without use of Ionizing Radiation. CardioMag's MCG system is the world's first and only MCG system to obtain FDA approval. The basis of the device relies on analyzing magnetic fields generated by the heart's electrical activity. As such, it can be applied broadly, from prevention through diagnosis, to determine the relative risk of cardiac rehabilitation. From the MCG analysis of ventricular repolarization alone, the physician can tell whether a patient has underlying coronary artery disease and-using beat-to-beat analysis-the relative risk of sudden cardiac death.
	CorePLUS is an instantly scalable infrastructure platform, which is open standards based and both technology and network agnostic, providing centralized administration and provisioning of applications and services. CorePLUS delivers CoreHealth, an application delivery service that aggregates a wide variety of healthcare software to be used in medical practices, hospitals, pharmacies, laboratories and other institutions in SaaS format. On the CorePLUS cloud, hospitals can deploy, train, integrate, schedule, and update programs and IT infrastructure in a more effective way. The result is total security, total reliability and redundant data management supplied by a single vendor. No down time, no viruses, no equipment or software upgrades to worry about.  CorePLUS uses this convergent digital network to allocate activities more efficiently, and to provide a platform for companies to securely access traditional applications while harnessing these new tools which are transforming the way business is conducted. This technology frees up high-value workers to spend more time doing what they do best.
	DentLight is a unique medical device company bootstrapped in 2005 and funded by Emerging Technology fund in 2008. We focus in the field of dental equipment and disposables, where we patent, design, develop, manufacture, and market dental diagnostic and treatment devices for dental clinics and hospitals. We have established two brand name products- FUSION Curing Lights and DentLight Headlights, which have been sold through all leading dental distributors. Our products have been validated as the best LED light technology by opinion leaders, independent research institutions, and dentists around the world and against the most reputable large dental manufacturers. We have won best product awards (2008 and 2010) and are winning customers with our unique products and friendly services. DentLight's technology is revolutionizing dental practice procedures for oral exams, braces, oral surgeries, restorative and cosmetics including cavity, sealant, veneers and crown/bridges with improved work efficiency and better health treatment of patients.
	The ErgoNurse® is a No-Lift patient moving device for bedridden patients.  It is a solution for the multi-billion dollar problems of hospital staff injuries resulting manually lifting and moving patients and hospital acquired bed sores. The ErgoNurse allows a single giver to quickly and safely perform all the on-bed patient movements. It boosts (or pulls) patients up in bed and turns patients to avoid pressure ulcers.  It also turns them fully to their side for cleaning, dressing changes or linen changes. The ErgoNurse stands behind the bed so is out of the way when not in use.  It attaches to the existing bed linen and then by simply lowering the bed uses gravity to gently move the patient.  In our pilot studies the ErgoNurse has eliminated hospital staff injuries for three years.  The ErgoNurse is a simple, cost effective solution for eliminating most hospital staff back and shoulder injuries.
	Hospitech Respiration LTD. is a start up company established in 2006 to develop medical devices for the respiratory market. Hospitech's mission is to meet the challenge of reducing complications associated with mechanical ventilation.  The company has designed and developed the AnapnoGuard™.  The AnapnoGuard™ is an innovative respiratory guard system aimed at reducing the risk of ineffective ventilation as well as preventing complications related to prolonged mechanical ventilation such as ventilator-associated pneumonia and Mechanical complications. The system incorporates a non-invasive electronic control device as well as disposable proprietary endotracheal tubes and kits. The system has been tested successfully in pre-clinical and clinical evaluations in Israel and Europe. The entire system is CE certified and the endotracheal tube is FDA cleared (510k). Throughout 2010 and 2011 the company intends to extend the clinical studies in Europe and USA and by mid 2011 the Company intends to initiate early sales to targeted hospitals.
	MedHab is developing a new medical device, StepRite®, affording medical care prescribers the ability to customize physical rehabilitation protocols to meet each patient's unique needs.   StepRite® is a wearable device that has the capability to measure body weight, pressure, gait and the flexibility of lower extremities, as well as thermal sensing. StepRite will marketed as "DME."
	Medigent Health Services Inc. is an innovative healthcare service designed to provide affordable healthcare now! The basis for this service has been successfully operated in Europe since 2003. The service is simple in its concept: provide affordable, agile, high quality preventive healthcare to rural, underserved communities and those struggling to afford healthcare or who wish to have more affordable choices. Medigent Health Centers are unique in that they are comprised of relocatable units that can be moved from location to location on an as required basis. Our focus is primarily preventive care. Prospective patients will have access to treatment facilities that provide services including: ●  Outpatient  ●  Diagnostics  ●  Ambulatory Surgery  ●  Occupational and Physical Therapy ●  Dental Medigent, in collaboration with State Agencies, will provide Texas and other states with innovative , high quality medical delivery models, delivering affordable, high quality  healthcare.
	Munogenics, Inc. is a biotech company based in Austin.  Munogenics is in collaboration with Wake Forest University with the development a new and novel treatment and prevention of cancer revolving around  a new discovery of  cancer resistancy in mice.  The cancer resistancy has now been discovered in humans as well, and can be transferred to recipient cancer patients through spontaneous regression/complete response splenocytes, bone marrow cells or enriched marophages, either for prevention against subsequent cancer challenges or eradication of established malignancy at distant sites. An assay has been developed to test for cancer killing activity in humans.  This test can be used to identify potential cancer resistant donors. Munogenics is presently going into Phase II clinical trials utilizing this concept on various types of solid tumors in cancer patients.
	Otosound Products, LLC ("Otosound") is a market-ready, private UCSD tech transfer company uniquely poised to become the market leader in treating Tinnitus, a condition characterized by ringing in the ears caused by pathologies of the central nervous system.  We are the first and only FDA cleared sound diagnostic and therapeutic addressing the root cause of the pathology.  Today, medical treatment addresses only the symptoms based upon a subjective patient questionnaire.  We represent an audiology paradigm shift addressing web portal diagnostic delivery and insurance reimbursement status. 100 million people suffer from Tinnitus and because of our loud industrial world, war and personal iPod type devices; the condition is worsening and artificially accelerating among younger populations. Tinnitus is a consistent top 10 patient complaint and represents an $8.6B addressable market for Otosound. We have a seasoned management team with accomplished start-ups, funding and successful venture capital exits.

(Jason Rathke of PWC presenting Q2 2010 Moneytree report at NTEC's MedVentures2010)

NTEC's MedVentures2010 attracted roughly 400 attendees and featured over 70 exhibitors. Over 25 startups presented in the exhibit hall, 10 gave full business plan presentations and another 10 gave 90 second quick pithces.

A Q2 PWC Moneytree report by Jason Rathke (Q2 Texas stats here: Price WaterhouseCoopers Q2Moneytree  Texas stats) gave a bit of good news with some upbeat national and statewide life science investment data. Nationwide, life science venture investment increased by 31% to $2.1 billion and within Texas the $57.2 million invested in the first half of 2010 easily beat the $9.4 million from last year.

Freddie Carrol delivered a snapshot of the ETF's track record over the last few years and gave a hint at what is in store over the next year. The North Texas RCIC counseled over 650 companies, with 270 ultimately applying, of which 90 advanced to Austin. Of these, 40 have been recommended for funding with a majority having received the money to date.

Greg Young, Senior VP and Senior Portfolio Manager at Alliance Bernstein gave a well received macro overview of trends in the public markets. His prediction was that the near term volatility that is being experienced by so many should not drail the long term recovery.

Post-MedVentures2010 News:

- NTEC Medventures2010 presenter Palmaz Scientific closes $3M series A. http://bit.ly/NTECPalmaz3M 

- Several of our Venture Alliance partners have reported such talks and have confirmed interest in specific presenting companies. Named were Ortho Kinematics & CorePlus.

- Netmed (Gary Wald) and Magaw Medical (Jay Tydlaska) were both featured in an article by Sheryl Jean in the Dallas Morning News on 7/22

- NTEC's MedVentures2010 DMN article featured in Advamed's newsletter which reached over 18,000 opinin leaders & readers in the MedTech Industry according to Advamed. It was not just their top story for 7/23, but also a Top10 most clicked story http://bit.ly/AdvamedSmartbriefNewsletter7-23

- NTEC Venture Alliance was reported on by the Dallas Morning News, Dallas Business Journal and Forbes.com

- NTEC MedVentures2010 VC panelist & Venture Alliance Partners Sante & Prolog Ventures lead/co-invest $6M in Endostim http://bit.ly/Endostim

• There were 6.3 million measurable medical injuries in the U.S. in 2008, 1.5 million of which were associated with a medical error.
• The average cost per error was nearly $13,000.
• Measurable medical errors resulted in more than 2,500 avoidable deaths.

So what were some of the errors determined to be most costly?

• Pressure ulcers;
• Postoperative infections;
• Mechanical complications of devices, implants, or grafts.

On 8/12, MDD included summary information compiled by the ECRI Institute regarding safety hazards that are prevalent in hospitals throughout the country.  This list of hazards, updated annually based on problems reported to, and investigated by ECRI, included descriptions of the hazards and actionable steps for avoiding them.  A few of the top 10 were as follows:

• #10 - Fiberoptic light-source burns;
• #7 - Problems with computerized equipment and systems;
• #6 - Accidental needle sticks;
• #5 - Retained devices and unretrieved fragments from surgical procedures;
• #1 - Cross contamination from flexible endoscopes.

So what do these two recent stories have in common?  Healthcare system problems that need to be addressed?  Yes.  Entrepreneurial opportunity?  You bet.  Entrepreneurs see opportunity in problems and solving problems in healthcare delivery not only makes economic sense, it saves and improves lives.  For more information, direct your browser to www.milliman.com and www.ecri.org.