In reading about the failure of ViewRay and thought that it was representative of how orthopedics companies have failed in the past and how orthopedic companies will fail in the future.
We can all learn from the mistakes of companies like ViewRay.
Below are 6 errors that we can all learn from.
1/ Raised too much money.
ViewRay got high on their fund raisings, became over-confident and built too large of an expense base before sales came in. ViewRay's total funding was $877M.
2/ Went public pre-revenue in a 2021 using a SPAC vehicle.
SPACs are not required to do the same level of due diligence as traditional IPOs. This means that investors may not have as much information about the target company before they invest.
3/ Expenses were out of control.
ViewRay was facing financial problems even before it went public in 2021. The company had a history of losses, and it was burning through cash. This made it difficult for the company to invest in marketing and sales, which further slowed the adoption of the MRIdian system.
4/ Leadership was not capable of making big changes early enough.
Specific examples of the failures of ViewRay's CEOs and leadership:
CEO Scott Drake: Drake was t...
