LSI Partners with Medical Funding Professionals to Bring Democratization of Capital to Medtech Industry

Posted by Life Science Intelligence on May 7, 2021 6:51:10 AM
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Remember when entrepreneurs could only pitch to accredited investors…that they personally knew?

Well, those days are gone, thankfully, since the SEC adopted the final rules of the 2012 JOBS Act. Unfortunately, many startups still don’t know this, or how to take advantage of it. While numerous medtech and biotech firms have successfully used these new fundraising approaches (see Deregulating Innovation Capital: The Effects of the JOBS Act on Biotech Startups), it’s still a drop in the bucket compared to the total funding in the space.

Medical Funding Professionals (MFP) aims to change that.

MFP specializes in helping medtech and biotech, pharma and life Sciences companies raise capital utilizing Regulation A+, a provision of the JOBS Act that allows a company to raise up to $75 million per calendar year from accredited and non-accredited investors, via solicitation to the general public.

What excites me about working with MFP, besides their commitment to the same industries we serve at LSI, and the opportunity to expand the funding options available to medtech businesses, is their commitment to helping innovators stay in control of their companies. Throughout my conversations with MFP CEO Stephen Brock, this theme has come up over and over – the horror stories of founders being pushed out of their own companies, or giving up the lion’s share of the rewards to investors throughout multiple funding rounds. MFP’s Capital Planning Valuation Strategy™ (CPVS™) approach lays out a roadmap to keep your company’s major shareholders in control, throughout your capital raising process.

MFP is currently offering a complete CPVS assessment at no cost, which includes:

  1.       Pro-forma capitalization table reflecting the current capitalization structure of the company and the projected capitalization table following potential investments,
  2.       Pre- and post-money valuations of the company,
  3.       Selling shareholders analysis, showing how current shareholders can have a limited liquidity event in the Reg A+ offering,
  4.       Description of the sequential steps in the process ending with a financial offering in spreadsheet form, and
  5.       Synopsis with the steps of the funding process, i.e., the capital cash flow projection beginning post-registration and ending with receipt of offering proceeds.

This provides innovators a solid foundation for making informed decisions about future capital funding efforts.

I invite you to learn more about Reg A+, learn more about the CPVS process, or contact MFP to discuss your capital planning needs or set up a CPVS assessment. If you’re attending the Emerging Medtech Summit, you can also connect with MFP CEO Stephen Brock here to set up a meeting.

Topics: Medtech

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About the Author

Life Science Intelligence (LSI) helps medtech executives make better strategic decisions by delivering unique market data and business insights. For over 13 years LSI has been working with industry giants – Johnson & Johnson, Medtronic, Abbott, Stryker, Cardinal, Boston Scientific, and Becton Dickinson, among others. LSI products are also leveraged by the most successful start-ups, innovators, investors, and service companies that compete in medtech. LSI is the organizer of The Emerging Medtech Summit held annually in Southern California.

Contact LSI here, via phone 714 847 3540, or email info@lsintel.com