Device market entry strategy

An early-stage technology could digitize a large analog device market but needed the board aligned on which market to enter first, and on what terms to engage incumbents, before its Series A ran out.

L891-15

Prior analog-to-digital shifts benchmarked to set expectations

Situation

Board divided, runway short

Prototype technology capable of shifting $10B+ device market from analog to digital diagnostics with potential for applications in other markets (e.g. direct to consumer).
Uncertainty within board on strategy for devices market, priority of other markets and if/when/what to sell to strategic investors.
Meanwhile series A funding was running out and there was a need for a clear business case.

Project

Value chain teardown and option assessment

Deep understanding of medical opportunity including a complete tear down of economics at the provider, payer and supplier level.
Development of 3 strategic alternatives around different ways to engage with incumbents and selection of optimal option based on clear quantification of the value proposition.
Recommendation on timing of medical and consumer market roll-outs.

Value creation quantified by stakeholder to size capturable prize

Pricing and revenue scenarios used to set terms by geography

Outcome

Aligned strategy, funded round

Board and executive team aligned on strategy and value drivers.
Focus on medical market while keeping option open for consumer market given identified feasible entry points and “hot spot” potential.
Discussions with strategic acquirers initiated with clear goals, threshold terms, and a strong BATNA based on a compelling “go it alone” strategy.
Closed on series B funding at attractive valuation.

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