Crowdfunding Gains Popularity in Medical Device World
It’s no mystery that it’s very expensive to take a new device from concept to reality. Celebrities are crowdfunding their passion projects, so why shouldn’t a cash-strapped device designer be able to do the same? An inventor could have a game-changing idea but no big connections or investors to fund it. This is where online platforms like indiegogo.com come in. These are sites where people from all over the world can donate any amount of money to a “campaign” that they wish to support. Typically, donors will receive an incentive based on their donation amount that is specified by the project that needs funding. This could be anything from a free device to a t-shirt to simply getting their name on the credits. If the funding goal is not reached, donors are usually refunded.
There is such a demand for crowdfunding in the medical device world that the industry has branched off from kickstarter and indiegogo and actually started to create websites specifically for funding devices. These sites, such as MedStartr, HealthFundr, and B-a-MedFounder are growing quickly in popularity all over the world. As venture capital runs dry, device designers are turning to these innovative new ways of collecting investor money. B-a-MedFounder’s founder Daniel Yachia expressed to CNBC in a recent interview that “B-a-MedFounder expects that the bulk of the projects seeking funding will be looking for amounts in the range of $70,000 to $100,000. That’s what it usually takes to properly bring a concept to the stage where it is ready for a second round of funding with an eye toward marketing the devices.” B-a-MedFounder’s donation minimum starts at just $10, so now anyone can help fund an innovative new medical device.