New Mayo Clinic – ASU Accelerator Program To Spark Medtech Startups

According to a recent report released by Evaluate, the number of medtech startups hit a new low of 196 in 2018. The number has been declining over the last couple of years but it’s the first time in more than a decade the figure has gone below 200.

Surprisingly, however, the total amount invested in medtechs has been holding steady, thanks to big companies such as Grail, Helix, and Alphabet’s Verily. In fact, Verily’s recent investment of $1 billion in the industry signifies 2019 will leave 2018 in the dust in terms of the total amount invested in medtechs.

The new financing trend implies that investors have opted to make fewer, but bigger investments, which has enabled big companies like Helix to undertake ambitious R&D programs whereas small startups are left out in the cold.

That said, Mayo Clinic and Arizona State University think they may have a solution for this unpleasant situation. The duo has come up with a six-month accelerator program that is aimed at creating investment opportunities for medtech startups.

Throughout the program, medtech startups will have access to Mayo Clinic’s medical experts, investors, and other individuals who can validate, refine, and finance their technologies.

There is a catch, however. To qualify for the program, a medtech startup ought to have already generated $500,000 as seed capital. In addition to that, each startup that qualifies to join the program will pay a fee of $50,000.

The program will take place at Mayo Clinic’s Campus in Arizona, and its goal is to ensure that in those six months, each startup that joins the movement is in a better position to raise money and accelerate product development.

Whether this program will be beneficial or effective remains unknown. But the institutions are already recruiting the 1st batch of participants who’ll join the program by April, so we’ll find out in due time.

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