“Successfully navigating the investment landscape in MedTech hinges on grasping the diverse range of individuals and entities involved in the investment process.”

– Gil Solomon – Founder of Gil Solomon & Co.

What entities participate in MedTech investments, and why is it crucial to identify and understand the various types of MedTech investors? Additionally, what key statistics should I be aware of to better understand the MedTech investment landscape before embarking on innovation?

These questions are just the tip of the iceberg for entrepreneurs, whether they’re seasoned veterans or new to the startup scene. It’s essential to delve deep into these considerations before embarking on the journey of building a startup.

Gil Solomon’s keynote during the MedTech World Dubai Roadshow last February, Understanding MedTech Investors: Striking the Balance between ROI and Impact, gave attendees the opportunity to delve into the intricacies of MedTech investment. In the process, they would gain invaluable insights into the minds that are shaping the future of healthcare innovation.

The Dealmaker onstage

Gil Solomon brings over nine years of extensive legal expertise to the table as the Founder of Gil Solomon & Co., a distinguished boutique law firm specialising in a wide array of sectors, including commercial law, privacy protection, blockchain and cryptocurrency, high-tech, mergers and acquisitions, construction and real estate, intellectual property, and life sciences. 

This breadth of experience underscores his capacity to provide high-quality, customised legal services to a diverse clientele, spanning Fortune 500 corporations, publicly traded companies, startups, and small businesses alike.

At the heart of Solomon’s mission is a commitment to empowering clients to achieve their objectives and navigate challenges effectively. He achieves this by offering innovative and practical solutions honed through his expertise in commercial, high-tech, M&A, and blockchain law, complemented by his technical background in the tech industry.

Recently reaching out to Solomon, he told MedTech World: “MedTech World hosts events I’m always eager to attend, with highly interesting content and reputable speakers. I hope my humble contribution and my talk were as beneficial as those of the other speakers were to me. I highly appreciate the organisers and attendees for taking part. I can’t wait for the next one.”

Decoding the MedTech investment landscape

In his speech, Gil Solomon provided insightful context into the current state of MedTech investments. He highlighted a significant decline in IPOs of MedTech companies compared to the previous year, contrasting sharply with a relatively modest decrease in overall MedTech investments. Despite the challenging IPO landscape, there has been a record year in terms of FDA approvals and certifications, indicating a dichotomy in the industry’s approach.

“To secure investments in the MedTech field, it’s crucial to carefully consider who we are approaching. The individuals and entities investing in MedTech vary significantly. Understanding this diversity is key to navigating the investment landscape effectively.”

One key takeaway is the importance of understanding the diverse landscape of MedTech investors. Solomon emphasised the different types of investors, including Angel Investors, Venture Capitalists (VCs), and corporates such as medical device and pharmaceutical companies. This diversity underscores the need for tailored approaches when seeking investment in the MedTech sector.

Navigating the dynamic

Solomon then shed a brighter light on the unique dynamics of MedTech investments, particularly the involvement of corporate entities like MERC and Johnson & Johnson. Unlike traditional investors solely focused on ROI, these corporations seek to integrate startups and ventures into their suite of services or products, adding another layer of consideration for entrepreneurs.

“So what considerations do investors usually take into account?”

Solomon highlighted the dual considerations of impact and revenue driving investment decisions in the MedTech sector. While impact-driven investments are increasingly prevalent, revenue remains a crucial factor. Balancing these considerations is key, alongside managing funds efficiently and understanding regulatory pathways.

“Entrepreneurs must navigate the delicate balance between long-term and short-term investment objectives, ensuring alignment with investors’ goals while maintaining focus on innovation and growth.”

Insights and strategies

Solomon finally delved into the multifaceted considerations entrepreneurs must weigh when seeking MedTech investments. 

“Beyond understanding investors, market conditions play a pivotal role in shaping investment opportunities.” He further explained how recent macroeconomic factors, including high interest rates, pose challenges for both investors and entrepreneurs.

Additionally, regulatory hurdles loom large, necessitating meticulous planning and allocation of resources. Gil underscored the importance of building a robust team with strong managerial and leadership capabilities, emphasising their role in translating technological advancements into viable products.

Entrepreneurs must also prioritise protecting intellectual property rights and understanding investors’ motivations.

Closing with a timeless reminder, Gil Solomon stated, “While some investors identify impact first, all of them ultimately look at revenues.” 

MedTech Malta 2024 is bringing together the best and brightest… Join us!

Get ready to experience the future of healthcare at MedTech Malta, taking place from November 6th to 8th!

Set against the backdrop of Malta’s rich history and vibrant atmosphere, our event draws in MedTech innovators, investors, and industry leaders. Building on the success of our last year’s event at the Mediterranean Conference Centre in Valletta, we’re back for another round of groundbreaking innovation.

Engage in dynamic panel discussions, CEO workshops, and cutting-edge technology showcases. Don’t miss the chance to network, participate in pitch competitions, and attend the prestigious MedTech Malta Awards Gala.

Secure your tickets now and join us in shaping the future of healthcare!