Medical Device | FDA Approval | Medical Startup Funding | SEC Medical | Reg CF | Reg A | Shop Fund | Medical Funding Consultants | StartEngine | US Medical Funding | StartEngine Success Stories Medical Funding Consultants
Medical Device Crowdfunding | Medical Startup Funding
Medical Device Crowdfunding
Crowdfunding has become a very popular way for individuals and organizations alike to raise money for various causes. Early-stage medical device projects and startups are also considering crowdfunding as a potential source of capital. So, if you have a brilliant medical device idea and you are trying to raise capital for the project, then it is recommended that you consider starting a Reg CF Medical Device campaign.
Crowdfunding for Medical Device Projects
Despite the massive impact that crowdfunding has had in many industries, the uptake in medical device and MedTech in general seems to have been slower in this regard. If your idea is innovative and compelling, you can raise decent amount of funds for your medical device project through equity crowdfunding. Although medical device projects need a lot of capital before they can successfully complete, the funds raised via crowdfunding can make a huge difference at the beginning of the project’s journey. To help you decide whether or not a Reg CF Medical Device campaign is worth it, following is a simple 3-point checklist:
Will Investors Care About My Medical Device?
The typical investment minimum is around $100 on most crowdfunding platforms, so no matter what platform you sign up on, you are going to need a lot of investors to raise meaningful capital. For people to back your medical device project, they must: • Think that your device is great, and/or • Want to help you succeed so that it solves a particular problem The combination of both of these is best.
Can Perks and Rewards be offered?
This is the area where majority of medical device companies struggle. The reason is simple; early access to medical technology is not really something a company can offer for unapproved technology, and a company cannot guarantee participation in a clinical trial. Generally, if the medical device is more consumer-oriented, then it is more likely that it will be appropriate for crowdfunding. Still, if you are creative enough, you can surely come up with some compelling rewards and perks. Be sure to have legal counsel review any offer before you offer it to your investors.
Can I Raise Enough Capital to Make it Worthwhile?
Most medical device projects require a lot of money to reach cash flow positive. So, a Reg CF Medical Device campaign alone won’t get you there. If the capital you raise can propel you to a notable milestone, e.g. proof of concept or functional prototype, and if the crowdfunding platform gives you something else of value in addition to funds, e.g. consumer awareness, user feedback, etc., then crowdfunding could be a good move.
Currently, only a handful of medical technologies might make worthy crowdfunding projects however, one thing is for certain; crowdfunding for medical devices is here to stay. The rules and regulations are just beginning to take shape and currently most platforms only allow accredited investors to invest in these sectors. For those who are in the emerging MedTech and medical device space, a little revolution on the funding side seems in order.
Medical Startup Funding
Medical Startup Funding
Crowdfunding is the process of raising capital from a large group of people, generally through a crowdfunding platform. Crowdfunding has become one of the most popular ways for people around the world to raise capital for unexpected emergencies, such as medical expenses. However, it’s not easy to raise funds for such purposes and there are things you will need to consider to ensure that your medical startup funding campaign is a success. Choosing the right platform is the most important step.
How to Choose the Right Platform
Before launching your medical crowdfunding efforts, it is highly recommended that you browse several crowdfunding platforms and get familiar with what they have to offer. Some of the platforms are free to use while others charge fees that involves taking a percentage of all your donations. Similarly, some platforms let you withdraw your funds as soon as you acquire them while there are others that have certain criteria that you must meet before you are able to access your funds. All of these crowdfunding platforms have unique features that suit some people better than others.
When choosing a platform for medical funding, you should keep the following things in mind:
• Type of Campaign: Make sure that you select the crowdfunding platform that allows raising capital for personal causes, e.g. medical expenses. Some platforms like Patreon, Indiegogo, and Kickstarter, etc. are only for business fundraising.
• Fees: Investigate any commissions and setup fees. Some crowdfunding sites charge an upfront fee to set up your campaign. Others offer free setup but charge a specific percentage of your funds raised. And there are those that offer “free” fundraising, which means there are no deductions from your contributions. However, you can still expect a payment processing fee for each donation.
• Ease of Use: It is recommended that you choose a platform that has a user-friendly setup process. The best crowdfunding sites offer lot of tutorials on creating your page, including guides on embedding images and videos, posting updates, sharing on social media, etc.
• Payment Processing: You should learn how the platform allows you to get the donations. Most crowdfunding sites connect to PayPal or some other payment processing service. It is recommended that you select a platform that lets you access your funds as soon as the donations come in.
Top Platforms for US Medical Crowdfunding
There are a wide variety of crowdfunding platforms out there and most of them are ideal for Regulation CF medical funding. Here are some recommendations:
• GoFundMe: GoFundMe is one of the most popular personal crowdfunding platforms. It allows raising capital for individuals, groups, and non-profits.
• FundRazr: FundRazr is similar to most of its competitors, with an added advantage of featuring beautiful design and increased functionality.
• GoGetFunding: GoGetFunding offers users a flexible and easy way to raise capital for a cause.
• Fundly: While Fundly is not as popular as other crowdfunding platforms, it has a good track record and it has been very successful in helping individuals raise capital for personal causes. No matter which platform you choose, it is highly recommended that you check its policies, benefits, fees, pricing, and limitations before you sign up.
StartEngine - Reg CF, and Reg A campaigns from $50,000 to $75,000,00
Wefunder - Reg CF from $50,000 to $5,000,000
Republic - Reg CF, Reg A and Reg D Offerings