The 5 Most Common Questions in Medical Device Company Financing

Why is it that among medical device companies, some are able to continuously obtain capital support, while others still find it very difficult to raise funds even after obtaining a product registration certificate?

The core reason is:

Obtaining product registration does not equal commercialization.

01 Why is it still difficult to finance after getting the product certificate?

Investors will usually continue to pay attention to:

• Clinical value;
• Hospital usage;
• Reimbursement pathway;
• Commercialization team;
• Market competition landscape;
• Overseas market space.

Therefore, the registration certificate is only one part of the value-proof system.

02 What do investors really care about?

For medical device companies, capital is increasingly focusing on data.

Including:

• Clinical data;
• Sales data;
• Number of hospitals covered;
• Product usage;
• Repurchase situation;
• Gross margin;
• Overseas orders.

Companies need to prove their business model with data.

03 Technical barriers are still important

Medical device companies that can truly attract long-term capital attention usually have strong technical barriers.

For example:

• Core algorithms;
• Core materials;
• Core components;
• Clinical technology;
• Patent portfolio;
• Process capabilities.

04 Why is going overseas becoming more and more important?

Chinese innovative medical device companies are increasingly entering the international market.

For high-tech, high-R&D investment products, a larger overseas market can provide new commercialization space.

Therefore, internationalization capability has become an important factor for some investment institutions to judge the long-term value of a company.

05 Will M&A become an important exit path?

As the integration of the healthcare industry accelerates, M&A is becoming an important way for companies to exit and for industrial integration.

Therefore, from the very beginning, companies should consider:

Who might become a future strategic investor or industrial buyer?

This will in turn affect the company’s technology, product, and business strategy today.

T-Capital’s View

The core of medical device financing has gradually shifted from “telling a good product story” to:

Proving corporate value with clinical, commercialization, and industrial data.