• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Opinions
    • Top 30
    • Research
    • Supply Chain
    • Device Sectors
    • Directory
    • Events
    • Resources
    • Microsites
    • More
  • Magazine
  • News
  • Opinions
  • Top 30
  • Research
  • Supply Chain
  • Device Sectors
  • Directory
  • Events
  • Resources
  • Microsites
  • Current / Back Issues
    Features
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Reprints
    Subscribe Now
    Advertise Now
    Top Features
    Parylene Coatings for Medical Device Technologies

    The Big Shift: Nearshoring Trends in Medtech Manufacturing

    OEMs Seek Molders Offering Timely Techniques

    Robotic Surgery: Cutting Through to the Latest

    Packaging, Sterilization Considerations Go Part and Parcel with Product Development
    OEM News
    Supplier News
    Service / Press Releases
    Online Exclusives
    Press Releases
    People in the News
    Product & Service Releases
    Supplier News
    Medtech Makers
    Technical Features
    International News
    Videos
    Product & Service Releases
    Live From Shows
    Regulatory
    Financial/Business
    Top News
    BD Recalls Intraosseous Products Over Multiple Issues

    Rapid Medical Expands U.S. Portfolio

    MMS Holdings Partners With Lindsay Goldberg

    ENDRA Life Sciences Issued 28th Patent

    Levita Magnetics Closes $26M Series C
    From the Editor
    Blogs
    Guest Opinions
    Top Opinions
    Parylene Coatings for Medical Device Technologies

    The Big Shift: Nearshoring Trends in Medtech Manufacturing

    OEMs Seek Molders Offering Timely Techniques

    Robotic Surgery: Cutting Through to the Latest

    Packaging, Sterilization Considerations Go Part and Parcel with Product Development
    Top 30 Medical Device Companies
    Market Data
    White Papers
    Top Research
    Cooling and Melting the Pain Away

    What Are the Fundamentals of Go-To-Market Strategy in Medical Devices?

    Minding the Gap: How Harmonizing Quality Systems Pays Off

    Building Strong Partnerships Between Medtech and Surgeon-Learning Platforms

    Four Key Considerations for OEMs Transferring a Product Program
    3D/Additive Manufacturing
    Contract Manufacturing
    Electronics
    Machining & Laser Processing
    Materials
    Molding
    Packaging & Sterilization
    R&D & Design
    Software & IT
    Testing
    Tubing & Extrusion
    Cardiovascular
    Diagnostics
    Digital Health
    Neurological
    Patient Monitoring
    Surgical
    Orthopedics
    All Companies
    Categories
    Company Capabilities
    Add New Company
    Outsourcing Directory
    Fusion Biotec Inc.

    Xact Wire EDM Corp.

    Concise Engineering

    Arthur G. Russell Co. Inc., The

    Cirtec Medical
    MPO Summit
    Industry Events
    Webinars
    Live From Show Event
    Industry Associations
    Videos
    Career Central
    eBook
    Slideshows
    Top Resources
    Medical Computing: COM Express Processes Real-Time Data at the Edge

    The Importance of Building Successful Supplier Relationships

    The Benefits of Outsourcing Innovation in Medtech Manufacturing

    Patching Healthcare Cybersecurity Risks in the Internet of Medical Things

    Leveraging Open Healthcare Data Standards to Improve Medical Device Manufacturing
    Companies
    News Releases
    Product Releases
    Press Releases
    Product Spec Sheets
    Service Releases
    Case Studies
    White Papers
    Brochures
    Videos
    Outsourcing Directory
    Fusion Biotec Inc.

    Xact Wire EDM Corp.

    Concise Engineering

    Arthur G. Russell Co. Inc., The

    Cirtec Medical
    • Magazine
      • Current/Back Issues
      • Features
      • Editorial
      • Columns
      • Digital Editions
      • Subscribe Now
      • Advertise Now
    • News
    • Directory
      • All Companies
      • ALL CATEGORIES
      • Industry Associations
      • Company Capabilities
      • Add Your Company
    • Supply Chain
      • 3D/Additive Manufacturing
      • Contract Manufacturing
      • Electronics
      • Machining & Laser Processing
      • Materials
      • Molding
      • Packaging & Sterilization
      • R&D & Design
      • Software & IT
      • Testing
      • Tubing & Extrusion
    • Device Sectors
      • Cardiovascular
      • Diagnostics
      • Digital Health
      • Neurological
      • Patient Monitoring
      • Surgical
      • Orthopedics
    • Top 30 Company Report
    • Expert Insights
    • Slideshows
    • Videos
    • eBook
    • Resources
    • Podcasts
    • Infographics
    • Whitepapers
    • Research
      • White Papers
      • Case Studies
      • Product Spec Sheets
      • Market Data
    • MPO Summit
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • Microsite
      • Companies
      • Product Releases
      • Product Spec Sheets
      • Services
      • White Papers / Tech Papers
      • Press Releases
      • Videos
      • Literature / Brochures
      • Case Studies
    • About Us
      • About Us
      • Contact Us
      • Advertise with Us
      • eNewsletter Archive
      • Privacy Policy
      • Terms of Use
    Online Exclusives

    Using Revenue-Based Financing to Grow in the Pandemic

    One revenue-based funding investor shares real-world examples of firms that gained access to cash without giving up a piece of the company.

    Related CONTENT
    • BMP Medical - Delivering Custom Plastics Manufactured Solutions
    • DDL Inc.
    • High Tech Turning Co. Inc.
    • sfm medical devices GmbH
    • Breakthrough Device Designation Granted for New Neuromodulation Platform
    Wayne Cantwell, Co-Founder and Managing Director, Decathlon Capital Partners10.14.20
    For well-positioned medical device companies, recessions and uncertain economic conditions are surmountable challenges. But a recession as deep and uncertain as the COVID-induced shutdown can leave a lasting mark for companies still requiring capital investment.

    In 2020, medical device companies suffered from the twin challenges of a near moratorium on elective medical procedures and deep disruptions to their supply chain. According to GlobalData, “Between 70–100% of all the aesthetic procedures performed in the U.S. are estimated to be delayed, postponed, or canceled due to COVID-19.”

    Analysts, meanwhile, assure demand is still there. It is expected to fully rebound as soon as the virus subsides. This valley of paused revenue and continuing expenses can be dangerous territory for even strong companies. Venture capitalists smell opportunity. As a result, company founders can find themselves giving away a significant portion of ownership to land financing that will help them weather a short-lived economic event.

    Revenue-based financing is an alternative. No equity is exchanged in return for funding. The investment is simply paid back from future revenue.

    Decathlon Capital recently funded several medical device companies, understanding the short-term disruptions to the industry did not change the long-term picture of robust growth over the long term. The medical device industry is expected to experience compounded annual growth of 4.1 percent over the next five years, according to Lucintel.

    For Decathlon Capital, this moment in time is an opportunity to fund solid companies with powerful growth potential. For the companies, it is a perfectly timed cash infusion during marketplace disruption without having to hand over a piece of the company.

    Following is a look at some recent medical device deals that highlighted the strength of the medical device market and the flexibility of revenue-based funding.

    Aesthetics Biomedical
    As previously mentioned, the aesthetics space in healthcare has experienced a nearly total pause during the pandemic. But, the long-term picture for an innovator like Aesthetics Biomedical is extremely bright.

    The global aesthetics market was estimated at approximately $52.5 billion in 2018, according to Grand View Research, and is expected to grow at a compounded annual rate of 8.9 percent through 2026. That growth will be led by non-invasive and minimally invasive procedures—which Aesthetics Biomedical specializes in—and powered by the population growth in the 30-65 year-old demographic.

    Aesthetics Biomedical’s unique aesthetics innovations include the Vivace and SoMe products. Vivace is a fractional microneedle therapy device that naturally stimulates collagen production and reduces the effects of skin aging. SoMe is an anti-aging skin care product that uses a patient’s own platelet-rich plasma to deliver personalized skin rejuvenation.

    The demand for these procedures and therapies, on hold during the pandemic, are likely to rebound sharply as vaccines or virus therapies give patients confidence to resume selective therapies.

    Interestingly, Aesthetics Biomedical had a term sheet from a venture capital firm in front of them when they decided to pursue revenue-based financing.

    Sonacare Medical
    Sonacare’s high intensity focused ultrasound is actually a step forward in the type of invasive surgery that is problematic during the pandemic. The company markets a surgery-free alternative for the ablation of tumors and other unwanted tissue.

    Sonacare’s FDA-cleared technology and powerful growth profile attracted Decathlon Capital to the company, whose owners and executives also had a venture capital term sheet in front of them. Their “surgery without a scalpel” model reduces recovery times. Sonablate, the first high-frequency ultrasound probe to be commercialized, is particularly effective in treating prostate cancer with precision.

    Decathlon Capital’s funding allows the company to continue growth plans without having to go back to the equity markets during a particularly difficult time to raise money at fair valuations.

    Additional Cases
    These two funding deals in the midst of the COVID crisis are similar to other medical device and medical equipment investments Decathlon has completed recently.

    Irrisept, a wound irrigation product, accepted Decathlon Capital funding, paying back the investment early with cash and some equity it raised at a higher valuation as the company matured.

    Heart Sync, another Decathlon Capital investment, was acquired by Japanese medical device company Nissha. The heart defibrillation electrode maker paid back the Decathlon investment as part of the transaction.

    These transactions showcase the flexibility and company-friendly approach of revenue-based financing, especially in a growing industry that may be hard to properly value during an unprecedented pandemic.

    Conclusion
    During an economic crisis like this, companies are approached by equity players looking at the pandemic as a way to offer terms not friendly to founders. Revenue-based funding investors offer something different. There is no valuation event so there is no down round that could signal, incorrectly, weakness after the pandemic passes. Revenue-based funding is a simple funding approach that is often a superior way for companies to continue growing as business owners are able to access capital for growth without any dilution, change in governance, or operational involvement from an investor.
    Suggested For You
    BMP Medical - Delivering Custom Plastics Manufactured Solutions BMP Medical - Delivering Custom Plastics Manufactured Solutions
    DDL Inc. DDL Inc.
    High Tech Turning Co. Inc. High Tech Turning Co. Inc.
    sfm medical devices GmbH sfm medical devices GmbH
    Breakthrough Device Designation Granted for New Neuromodulation Platform Breakthrough Device Designation Granted for New Neuromodulation Platform
    Hyperfine Names Paykel, Teisseyre to Executive Leadership Roles Hyperfine Names Paykel, Teisseyre to Executive Leadership Roles
    Accu-Tube Appoints Matthew Haddle as CEO Accu-Tube Appoints Matthew Haddle as CEO
    First CellFX Procedure Performed in Canada First CellFX Procedure Performed in Canada
    Turner Imaging Systems Announces International Expansion Turner Imaging Systems Announces International Expansion
    Heraeus Acquires Mo-Sci Corporation, ETS Technology Holdings Heraeus Acquires Mo-Sci Corporation, ETS Technology Holdings
    MedTech Innovator Names the Finalists for the Title of MedTech Innovator 2021 MedTech Innovator Names the Finalists for the Title of MedTech Innovator 2021
    Boston Scientific Agrees to Acquire Devoro Medical Boston Scientific Agrees to Acquire Devoro Medical
    CE Mark Granted to Predictive Software for Kidney Allograft Survival CE Mark Granted to Predictive Software for Kidney Allograft Survival
    Electroducer Raises 3 Million Euros to Market Heart Valve Disease Tech Electroducer Raises 3 Million Euros to Market Heart Valve Disease Tech
    OmniVision Debuts Industry’s First 8 Megapixel Medical-Grade Image Sensors OmniVision Debuts Industry’s First 8 Megapixel Medical-Grade Image Sensors

    Related Videos

    • BMP Medical - Delivering Custom Plastics Manufactured Solutions

      BMP Medical - Delivering Custom Plastics Manufactured Solutions

      Medical Contract Manufacturing, Design, Assembly & Packaging

    • DDL Inc.

      DDL Inc.

      DDL has been in medical device package, product and material testing industry for almost 20 years. We strive to offer the most effective business practices while employing a staff of technical experts.
      Chris Murphy, Marketing Manager 11.11.21

    • High Tech Turning Co. Inc.

      ...
      Fred Sophis, Sales 11.02.21


    • sfm medical devices GmbH

      ...
      Albert Busch, Head of Marketing 10.07.21

    • Breakthrough Device Designation Granted for New Neuromodulation Platform

      Breakthrough Device Designation Granted for New Neuromodulation Platform

      In a pilot study treating refractory epilepsy with Neuroelectrics’ Starstim platform, patients experienced a 44 percent median reduction in seizure frequency.
      Business Wire 09.22.21

    Loading, Please Wait..

    Trending
    • Cardinal Health CEO Mike Kaufmann Steps Down
    • Medidata Unveils New Tech To Improve Clinical Trial Oversight
    • How To Overcome The Top 6 Medical Device Manufacturing Challenges
    • TruArc Expands Medical Portfolio With Acquisition Of Molded Devices Inc.
    • Chronic, Infectious Disease Prevalence To Benefit Vital Signs Monitoring Market
    Breaking News
    • BD Recalls Intraosseous Products Over Multiple Issues
    • Rapid Medical Expands U.S. Portfolio
    • MMS Holdings Partners With Lindsay Goldberg
    • ENDRA Life Sciences Issued 28th Patent
    • Levita Magnetics Closes $26M Series C
    View Breaking News >
    CURRENT ISSUE

    July/August 2022

    • Parylene Coatings for Medical Device Technologies
    • Nearshoring Trends in Medtech Manufacturing
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Charlotte’s Web Sports Product Line to Undergo NSF Certification Process
    ADM and Benson Hill Partner to Scale High Protein Soy for U.S. Market
    Tazo Transitions to Regenerative Organic Agriculture
    Coatings World

    Latest Breaking News From Coatings World

    Valspar Reveals Fresh Lineup of New Shades in 2023 Colors of the Year
    Evonik Grows Strongly in 1H 2022
    PPG Chairman and CEO Joins Disability:IN Effort to Advance Disability Inclusion
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    BD Recalls Intraosseous Products Over Multiple Issues
    Rapid Medical Expands U.S. Portfolio
    MMS Holdings Partners With Lindsay Goldberg
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Almac Invests $65M to Expand North American HQ
    Pace Appoints Nisheet Gupta as EVP and Chief Financial Officer
    West Pharmaceutical Makes Strategic Investment in Latch Medical
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Arkay Chairman Emeritus Howard Kaneff Has Died
    Nutricosmetics Market to Hit $13.7 Billion by 2030
    Estée Lauder Pledges 100% Electric Fleet of Vehicles by 2030
    Happi

    Latest Breaking News From Happi

    Odor Elimination with Prickly Pear Extract or Persimmon Juice
    Photocurable Resin for Nails and Artificial Nails
    Hair Product Patented by L’Oréal
    Ink World

    Latest Breaking News From Ink World

    Paul N. Gardner Offers Bacharach Sling Psychrometer
    Flexible Packaging Market Expected to Reach $102.8 Billion by 2031: AMR
    Evonik Enjoys 31% Growth in 1H 2022
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Hybrid Software joins The Flexo Xperience Center
    Flexo Wash LLC and Mike Potter celebrate 20 years
    Colordyne hosts open house featuring hybrid print technology
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Focke & Co. to Host Destination: Your Hygiene Hub on August 31
    Exports Dominate Chinese Trade of Tissues, Hygiene Products and Wipes
    Freudenberg to Present Friction Inserts for Wind Energy
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Study Results Released for Abbott's Concussion Blood Test
    Bone Growth Stimulators Market to Top $3B by 2030
    Surgalign, RTI Settle Lawsuit Over OEM Biz Sale
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    eMagin Corporation Announces 2Q 2022 Results
    Zebra Technologies’ Emission Reduction Targets Validated by SBTi
    Identiv Delivers Impressive 41% Year-over-Year Growth in RFID Business

    Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login