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Investing in MedTech and HealthCare

2 min read. The rapidly growing MedTech and HealthCare industries currently offer great investment opportunities. Before investing, take the time to prepare by learning more about the industry. Let’s discuss the current trends, how to diligence a MedTech organization, and common mistakes to be aware of.

Trends in the Industry

The MedTech space is growing rapidly as technology advances. Some trends we currently see in the industry include:

  • There is a movement towards incorporating cutting-edge technology into healthcare, primarily artificial intelligence. This increases health equity, but also the reach of medical care. This is especially important in sectors such as the mental health sector where demand currently far outweighs supply.
  • A lot of health companies are streamlining their payment systems and platforms.
  • There is an increasing emphasis on security and how it relates to medical work in the biotech world and the flow of HIPPA requirements. 
Diligencing MedTech

What do investors need to analyze when considering investing in a MedTech organization? Old fashioned diligence, the same as with any startup, needs to come first. This includes:

  • the team
  • the vision
  • the values
  • the culture; is it entrepreneurial?
  • management abilities as most MedTech teams are run solely by scientists lacking in this area

In addition to the basics, you should pay attention to:

  • intellectual property and patents
  • regulatory pathways to bring products and services to market
Common Mistakes in the MedTech Sector

Below are some common red flags to be aware of when analyzing organizations in this space. These are red flags in any industry; however, they are especially common in MedTech due to the fact that teams typically consist of nonbusiness individuals who are scientists and IT personnel before they are managers and marketers. Mistakes to watch for include:

  • unrealistic expectations
  • exaggerating the numbers in their pitch deck presentations
  • inability to accept feedback
  • no line of sight through the regulatory pathway

Read more on the TEN Capital blogs


Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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