# #334: MedTech Funding and Preparing for Due Diligence

- Show: [Global Medical Device Podcast](https://hardwarepodcasts.com/podcast/global-medical-device-podcast)
- Published: 2023-08-31
- Length: 56m
- Episode: 334
- Page: https://hardwarepodcasts.com/podcast/global-medical-device-podcast/2023-08-31-334-medtech-funding-and-preparing-for-due-diligence
- Listen: https://podcast.greenlight.guru/episode/334-medtech-funding-and-preparing-for-due-diligence

## Summary

Devon Campbell, founder of Product, explains how medical device startups should prepare for due diligence by understanding the distinct motivations of angel, strategic, and VC investors. He identifies five critical red flags during technical diligence: unrealistic go-to-market strategies, inexperienced teams, cherry-picked or unrepeatable data, products that look polished but lack manufacturing readiness, and immature Quality Management Systems (QMS). Campbell emphasizes that investors seek 'unquestionable, indelible data' and confidence built through transparent, humble documentation rather than bureaucratic perfection. He advises founders to proactively address these gaps, engage in founder-to-founder networking, and align their infrastructure with their current stage of development to avoid rejection during funding rounds.

## Outline

1. Introduction: Devon Campbell and Product's Advisory Role
2. Strategic Investors: Equity, In-Kind Resources, and Conflicts
3. Angel Investors: Advisory Roles, Networks, and Dilution
4. Venture Capitalists: Professional Diligence and Time Horizons
5. Current Funding Landscape: Risk Tolerance and Series A/B
6. Red Flag 1: Unrealistic Go-to-Market and Regulatory Strategies
7. Red Flag 2: Team Expertise and Advisory Gaps
8. Red Flag 3: Data Integrity, Reproducibility, and Transparency
9. Red Flag 4: Product Maturity and Design for Manufacturing
10. Red Flag 5: Quality Management Systems (QMS) and Infrastructure
11. The 20% Effort: Realistic Plans, Safety, and User Feedback
12. Founder-to-Founder Networking and Strategic Advice

## Topics

- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Quality & yield](https://hardwarepodcasts.com/topic/quality-and-yield)
- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)

## Most relevant to

early-stage companies, companies scaling up

## Mentioned

- Product (company)
- Greenlight Guru (company)
- Mass Challenge (other)
- FDA (other)
- ISO (other)
- 510K (other)
- FMEA (other)
- QMS (other)
- EQMS (other)

## Related episodes from other shows

- [S4E47 Mark Byrne | Startup Engineering, Funding, & Assumptions](https://hardwarepodcasts.com/podcast/being-an-engineer/2023-12-08-s4e47-mark-byrne-startup-engineering-funding-assumptions) (Being an Engineer)
- [S5E8 Aaron Call | How to Find Money for MedTech Startups](https://hardwarepodcasts.com/podcast/being-an-engineer/2024-02-23-s5e8-aaron-call-how-to-find-money-for-medtech-startups) (Being an Engineer)
- [S1 E7: Level Up Your Hardware Product Pitch with Haje Kamps](https://hardwarepodcasts.com/podcast/the-builder-circle/2023-06-27-s1-e7-level-up-your-hardware-product-pitch-with-haje-kamps) (The Builder Circle)
- [Deep Tech Investing](https://hardwarepodcasts.com/podcast/oxide-and-friends/2022-08-02-deep-tech-investing) (Oxide and Friends)
- [196: Common Gaps Being Ready for Manufacturing](https://hardwarepodcasts.com/podcast/product-startup/2023-10-05-196-common-gaps-being-ready-for-manufacturing) (Product Startup)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/global-medical-device-podcast/2023-08-31-334-medtech-funding-and-preparing-for-due-diligence. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Global Medical Device Podcast.