These are challenging times around raising equity capital in the Medtech space, says Rob Winkelmann, managing partner and CEO of Credo 180. The firm works primarily with venture capitalists and private equity-backed companies to evaluate, and ultimately procure, debt capital.
But equity investors want to give companies additional breathing room, even though they might have to carry firms farther and longer.
Capital is available but the underwriting criteria have gone up and investors are being more selective.
Winkelmann advises start-ups to plan two to three steps ahead and, as they evolve from one stage to the next, to make sure the amount and type of debt capital is right.
Early is better, he says. If his firm is brought in too late, Winkelmann states that it’s difficult to adjust and/or course correct. “A cohesive strategy leads to better outcomes,” he advises.