NXG in the FD: ‘Why medical startups run out of money’
The Financieele Dagblad highlights the funding challenges for Dutch medical startups that inhibits the startups to realize their potential. This requires us, as Peter Haasjes puts it in the article, to look for follow-up financing before we invest into a startup.
We note a mindset shift from gathering clinical data to later-stage market access and reimbursement, effectively resulting in increased interest for companies with revenue in the United States. The key reasons for this are:
1. The introduction of the MDR which makes obtaining a CE-mark for medical devices more difficult as the process is lengthy and less transparent compared to the FDA.
2. The differences in national reimbursement systems within the European Union.
3. The M&A landscape shift towards primarily acquiring revenue generating companies.
Despite the challenges, we see great potential as Europe has tremendous academic ecosystem that drives advancements in regenerative medicine, minimally invasive surgical technologies, and AI. These innovations promise to transform healthcare by extending life and improving efficiency.
Still, success requires a clear understanding of the reimbursement landscape, a strong ‘go-to-market’ strategy and solid plans for funding through sales or fundraising. We’re excited to engage with companies that align with this vision and discuss strategies to bring these technologies to life.
One thing is sure, the article drives engagement. Read the full article here.