Second in a 5-part series

In the first part of our series on helping early-stage med device companies that are seeking funding, we talked about the importance of understanding investors’ perspectives. Balancing that with the typical investee’s perspective can often produce a different picture of the funding challenge.

The majority of investees would likely agree that the road to obtaining funding is long and hard. They’ve developed what they sincerely believe is a conservative project plan, usually created by the people most familiar with their technology.

They’ve often gone a long time without any outside funds, skimping and saving on everything from parts and equipment to any and all outside services. Many find themselves in debt to external vendors and to themselves. Most go through many meetings and pitch presentations with potential investors, with few (or no) results.

Investees see an eventual investment as the end of these difficulties. Eureka! “All our problems will be over!” is a common cry, expressed within or (often) externally. They are expecting an infusion of funds to cover all their needs, and many are looking to get paid back for their time, expense and debt.

Coming up: The honeymoon is over

Such may be how the investee sees things. The reality, though, is that they often “don’t know what they don’t know.” When funding does come, there is indeed reason for celebration. But the truth is that the honeymoon ends pretty quickly. Watch for our next post on how to navigate this period, with the realization that understanding and managing expectations on both sides is critical to working well together on an ongoing basis.

Larry Blankenship, Director
March 17, 2026