46 karma · joined September 4, 2014
Universities are really great for many things. They are even really great at commercializing some kinds of technologies. But they are not great for all things, even all things related to bio or tech transfer. Sometimes crazy bets are the only way breakthroughs happen, and generally academia cultivates incremental more than transformational.
I started my company because I wanted to make affordable medical devices. The incentive systems for both med device companies and university commercialization offices are almost completely misaligned with building a business model that works for affordable medical devices.
So I went the entrepreneurial route.
Being in academic research is not the same thing as building a company. They're not the same skill sets, or even the same language. Lots of academics become technical advisers to startups built around their research. That's not the same thing as building a company. YC is about building a company.
I wrote about being a med device company in YC here: http://bit.ly/1LlmZjk, but I think really what I was writing about was being a researcher learning to build a startup.
While each of the items you mention are totally relevant, we've also found that it's possible to mitigate a lot of these risks and costs with careful strategy.
For example, we're building devices that don't require animal or human clinical trials. That saves a tremendous amount of time and money in development costs -- but there are still large, lucrative markets to tackle.
IP is hugely interesting, and our approach to developing simpler technologies means we're not neck deep in the kinds of cutting-edge technology that comes out of research labs. That affects our IP exposure.
The regulatory hurdles are absolutely there, and for a long time we found them daunting -- almost paralyzing. But once we dove in, especially with a great expert on our side -- it became manageable.
This is all to say, you're right: it's hard, and it's complex, and it can be expensive. But we're really enjoying figuring out where the spaces are in between all these hard things and finding new ways to make things happen.
We're working on the assumption that regulatory processes establish benchmarks for performance, but they don't need to dictate how one makes things -- ie, design considerations can be front and center, not an afterthought.
Also, let us know what kind of devices you want to see! We like to build things people want...
But it's really not that bad once you get the hang of it. If we could say anything to other people considering taking the plunge, it would be to not be afraid of the medical space. Sure, it's a regulated space and some things are more complicated, but the difficult problems are the more interesting ones to solve!
More along those lines: http://www.shiftlabs.com/blog/on-being-a-medical-device-comp...
We also have a business model that allows us to leverage software in ways that lower costs of doing business -- some traditional areas like sales and support, and some non-traditional ways as well.
Probably the most important part of startup culture that's letting us innovate differently is the ability to create product development processes that prioritize human centered design. It means we develop and test in a different order, and our failure criteria for tests are not just about function, but also about form.
My gut instinct is that I don't think sales costs are really a huge driver of how companies have been approaching innovation in the breast pump space. There is indeed consumer psychology around how to price products, but the thing that really came across during the hackathon was the frustration people felt about the design and engineering of the pumps -- not the price point.