Founders of emerging companies, such as those in the medical device industry, are often required to “bootstrap” their young companies before institutional dollars become a realistic option. Venture capital, strategic, and other institutional funding sources typically require target companies to have advanced the development of their core product beyond theory and blue prints before they will consider the investment opportunity.
According to the National Venture Capital Association’s 2010 NVCA Yearbook, venture capital under management in the United States by the end of 2009 decreased 11.9% from the 2008 level, and more than 35% from its reported peak in 2006. With continued contraction in the venture capital markets, founders increasingly are required to find alternative sources of capital to fund their ventures.
To read the full, original article click on this link: A New Device for Venture Capital | R&D Mag
Author: David W. Kantaros, Partner, Private Equity and Venture Capital, Foley & Lardner LLP, Boston and Keith D. Lindenbaum, Partner Intellectual Property Foley & Lardner LLP, Milwaukee
