High-Tech

MedTech – Fundraising diagnostics start-up

Development of equity story & investor universe, acquisition of strategic investors for the next funding round

Challenges for the customer

  • Novel technology in the field of diagnostics
  • Start-up had already gone through several rounds of fundraising but was behind the original schedule for certification-critical clinical trials (corona crisis)
  • A double-digit EURO million amount was required for further development in the upcoming funding round
High-Tech

Approach & success factors

Starting point was a critical review of the company’s strategy, competitive status and financial situation. The existing consortium of VCs and CVC wanted to support the upcoming funding round, but not fully. In this respect, a particular focus was placed on shaping the equity story.

An investor universe was created together with the start-up and the existing investors. It quickly became clear that two investor groups in particular would be interested in making a new investment. In addition to VCs specialising in MedTech, two strategic suppliers in particular were predestined to get involved as both wanted to establish a business relationship with the start-up as partners and suppliers in the near future. One of these suppliers also has its own CVC unit. This investor was ultimately won but was not yet sufficient for the necessary funding volume. Further investor approaches then led to the participation of a semi-public investor, which mirrored the investment amount of the new investor.

Results

  • Completing a double-digit million EURO round within 4 months from project start to closing
  • Additional partnership with a strategic supplier, which at the same time does not impair the start-up’s ability to exit in the future, but on the contrary should even increase value through additional expertise

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