Process

The Problem

Exceptional ideas for medical device startups are common. Yet, 90 percent fail to return the capital invested. Two-thirds of these failures can be attributed to problems with business execution or the dynamics among the founders/management team, or both. This causes many accredited investors to avoid medical device startups altogether or choose to diversify smaller investments across many companies. Indeed, it is often stated “investing in 20 startups leads to a 90 percent chance of at least one successful exit.”

Medical device development is extraordinarily complex, and obstacles to successful business execution are common. Hence, maximizing the likelihood of success usually requires access to a large team of business functional experts. Something most early stage startups lack the human, social, and financial capital to do.

We are committed to medical devices and the good they can do for patients and the healthcare system. And in order to keep that focus, Koa works differently. We have found novel ways to compress the development timeline and limit investor dilution.

Finding the Right Fit

  • Early-stage medical device and digital health concepts are solicited from universities, hospitals and industry.
  • The proprietary Koa Accel Scorecard™ helps to identify the most promising, based on a number of scientific and business criteria chosen to determine commercial fit.

Perfecting Business Execution

  • Each project is assigned an experienced manager who assembles the right members of Team Koa expert in the key medical device disciplines necessary to ensure each startup’s success. This team works hand-in-hand with the inventor/founder to move the project forward.
  • Koa’s team represents the following disciplines:
    • Project Management
    • Intellectual Property law
    • Upstream Marketing
    • Market Research
    • Medical and Scientific Affairs
    • Engineering
    • Product Development
    • Regulatory & Clinical Affairs
    • Health Economics & Reimbursement
    • Quality
    • Manufacturing
    • Commercialization
  • Strategic and operating plans are developed and rapidly executed in 12-18 months around key milestones with meaningful value inflection points, such as manufacturing readiness and 510(k) submission.
  • In each functional area, key business risks are identified, and a mitigation plan is developed.

Embedding Seasoned Management

  • Using a stage gate process, each project ultimately receives a “go” or “no-go” decision.
  • With a “go” decision, Koa recruits the most qualified executives in key roles, such as CEO and Chief Medical Officer, from its wide and deep network to drive the company.
  • With key business and management risks mitigated, capital is raised among Koa Accel’s investor network and the project is spun-out as an independent company.