Ted Bird shares everything that he knows about crowd funding for Medtech startups – the good, the bad, and the ugly.
Recording on YouTube here – https://youtu.be/J3NjI1OUzlY?si=l4AsDJne27ompQ2F
SUMMARY
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- Bootstrapping (5:00-10:00): Using personal savings or credit cards to fund early-stage startups. Advantages: complete control, no dilution of equity. Disadvantages: limited growth potential, not viable for high operating expenses.
- Grants and awards (10:00-15:00): Non-dilutive funding from government agencies, non-profit organizations, or academic institutions. Ideal for startups with low capital requirements.
- Family offices and individual investors (15:00-20:00): Wealthy individuals or families who invest in startups. Advantages: personal relationships, flexible terms. Disadvantages: limited funding available, high selectivity.
- Angel investor networks (20:00-25:00): Groups of individuals who invest in early-stage startups. Advantages: access to multiple investors, potential for mentorship. Disadvantages: competitive, high equity dilution.
- Charitable grants (25:00-30:00): Funding from foundations or organizations with a specific mission. Requires alignment with the organization’s goals.
- Incubators and accelerators (30:00-35:00): Programs that provide funding, mentorship, and resources to startups. Advantages: access to expertise, network, and potential investors. Disadvantages: equity dilution, competitive selection process.
- Venture capital (35:00-40:00): Firms that invest in high-growth startups with the potential for significant returns. Advantages: large funding amounts, access to expertise and network. Disadvantages: high equity dilution, loss of control, stringent terms.
- Corporate venture capital (40:00-45:00): Investment arms of corporations that invest in startups that align with their strategic goals. Advantages: potential partnership opportunities, validation from a large company. Disadvantages: limited availability, specific requirements.
- Equity crowdfunding (45:00-50:00): Raising capital from a large number of individual investors through online platforms. Advantages: democratic access to capital, potential for brand awareness. Disadvantages: complex regulations, high fees, potential for dilution and loss of control.