Positioning Your MedTech Startup for Investors and Acquirers ft Justin Farry

Building an innovative medical device is only part of the equation. If your goal is to raise capital or position your company for acquisition, you need to think beyond the technology itself. In this episode of MedTech Snapshot, Justin Farry, CFO of Endovascular Engineering and former executive at Axonics through its IPO and acquisition by Boston Scientific, shares the three areas every startup should be thinking about long before fundraising or acquisition conversations begin.

Investors and strategic acquirers aren't simply evaluating whether your product works. They're evaluating whether your company is worth the investment.

The first is proving the market opportunity. Investors want to know that your technology addresses a large and growing market, not a niche opportunity with limited upside. It's not enough to identify a Total Addressable Market (TAM).

Founders also need to understand their Serviceable Available Market (SAM), the competitive landscape, and whether reimbursement has been established. One of the biggest mistakes Justin sees is companies waiting until they're preparing for commercialization to think about reimbursement.

"If you're planning to go commercial, you need to be thinking about reimbursement two years before because that's how long it takes."

The second consideration is demonstrating that your company can win. Every milestone a startup achieves reduces risk in the eyes of investors. Clinical evidence, regulatory progress, early commercial traction, intellectual property, and an experienced leadership team all help build confidence that the business can successfully execute.

Justin also points to capital efficiency as an often-overlooked differentiator. Leveraging non-dilutive grant funding allows startups to continue advancing their technology while preserving founder equity. It demonstrates disciplined financial management and reduces investment risk without sacrificing momentum.

Finally, founders need to answer one critical question: Why should someone pay a premium to acquire your company?

That answer goes far beyond having a great technology. Strategic acquirers are evaluating how your company fits into their long-term business objectives. In some cases, they're looking for a product that integrates seamlessly into an existing sales organization. In others, they're trying to enter a fast-growing market where they lack commercial infrastructure and need a company that has already built customer relationships and a sales force.

"It really depends on what the acquirer is looking for."

Understanding those motivations changes how founders should position their business. Rather than presenting the same story to every investor or acquirer, successful companies tailor their messaging around the strategic needs of each potential buyer.

Perhaps Justin's most important takeaway is that these decisions shouldn't be made when it's time to sell the company. They should influence product strategy, market selection, reimbursement planning, commercialization, and fundraising from the very beginning.

"The successful founders don't think about these strategic decisions after the fact. You need to think about what the exit strategy is before you get started."
The most successful startups build businesses that investors want to fund and acquirers want to own.

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