Health Tech & Med-Device

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6.1 Eko Health – Digital Stethoscopes & Cardiovascular AI

Smart stethoscopes with FDA‑cleared cardiac AI; alternated small equity with ~$5.4M in NIH awards (2016–2020) and early device revenue to fund evidence and adoption.

Capital stacking approach: Micro‑grants → Seed SAFE → Early product revenue → NIH SBIR → Series A

Product‑Market‑Fit Phase

  1. Campus grants (~$20k) → prototype.

  2. Seed SAFE $2M (2015) → 510(k) submission.

  3. FDA clearance + device sales (2015).

  4. NIH SBIR/Fast‑Track (2016–20) ~$5.4M for AI.

Scale‑Up Phase

  • Series A $7M (2018); Series B $65M (2020).

References: Company · FDA 510(k) · NIH RePORTER

6.2 Penumbra – Neurovascular Devices

Interventional stroke tools that surpassed ~$125M revenue by 2014 pre‑IPO; physician angels and contract manufacturing funded 510(k) work with minimal dilution.

Product‑Market‑Fit Phase

  1. Angels (<$5M, 2004–06) to iterate.

  2. Contract mfg revenue (2006–08) → 510(k) + first sales.

Scale‑Up Phase

  • Bank line + cash flow → EU expansion; IPO 2015 $120M.

References: Company · IPO prospectus · FDA listings

6.4 Inogen – Portable Oxygen Concentrators

POC devices that hit ~$5M revenue pre‑institutional; bridged growth via a $4M royalty‑based facility (2008) before pursuing larger equity and IPO.

Capital stacking approach: Micro‑grants → NIH SBIR → Early product revenue → Royalty RBF

Product‑Market‑Fit Phase

  1. Competitions + family loans (~$300k) → prototypes.

  2. NIH SBIR I (~$850k, 2003) → validate purity specs.

  3. DTC sales (2004–07) → ~$5M revenue.

Scale‑Up Phase

  • Royalty RBF $4M (2008); minority growth $20M (2011); IPO 2014 ~$70M.

References: Company · SBIR · S‑1

6.5 Zipline – Medical Drone Logistics

Autonomous medical delivery that executed ~500 deliveries/week during early PMF; combined national service contracts with a $190M Series C (2019) to scale.

Capital stacking approach: Accelerator → Angels → Series A → Service contracts

Product‑Market‑Fit Phase

  1. YC $120k / 7% (2015) → prototype.

  2. Seed/angels (~$800k) → BVLOS tests, Rwanda MoH MOU.

  3. Series A $18M (2016) → distribution centers; 500 deliveries/week → PMF.

Scale‑Up Phase

  • Series B/C/E ($25M/$190M/$330M) + service contracts (Pfizer, Walmart, USAF).

References: Company · Rwanda MoH · Series C · PitchBook

6.6 Masimo – Non‑invasive Patient Monitoring

SET pulse‑oximetry pioneer that funded R&D via consulting and OEM royalties, then raised ~$233M in a 2007 IPO on the back of strong clinical and IP positions.

Product‑Market‑Fit Phase

  1. Bootstrapped R&D (1989–95) via consulting.

  2. OEM licensing (mid‑90s) funds RCTs and validation.

Scale‑Up Phase

  • Litigation wins + royalties (2006–07); IPO 2007 ~$233M.

References: Company · SEC filings · Clinical evidence

6.7 Tactile Medical – At‑Home Lymphedema Therapy

Home lymphedema therapy with payer‑validated ROI; raised a ~$46M IPO (2016) to scale recurring DME revenue after multi‑year coverage wins.

Product‑Market‑Fit Phase

  1. Founder capital → prototypes.

  2. Clinical ROI + payer pilots → coverage.

Scale‑Up Phase

  • Growth round (2012); IPO 2016 ~$46M.

References: Company · Clinical publications · SEC filings

6.8 Digital Diagnostics (IDx‑DR) – Autonomous AI for Diabetic Retinopathy

First FDA De Novo‑cleared autonomous AI for DR; Category I CPT 92229 (2021) enabled national reimbursement and unlocked partnerships without heavy early dilution.

Product‑Market‑Fit Phase

  1. NIH/DoD grants (2008–15) → algorithm + pivotal trials.

  2. De Novo clearance (2018) → payer pilots.

Scale‑Up Phase

  • Partnerships (2019–23) device/EHR integrations; targeted growth financing.

References: Company · De Novo DEN180001 (PDF) · PubMed studies

6.9 Sustainable Mid‑Scale Healthcare Examples (No "rocket‑fuel" VC)

6.9.1 Propeller Health – Digital Health for Asthma/COPD

Connected inhaler sensors + software backed by multiple 510(k) clearances (2015–16); pharma co‑development and pragmatic studies built evidence and distribution, culminating in a ~$225M acquisition.

Product‑Market‑Fit Phase

  • 2015–16: FDA clearances (Respimat, Diskus, Ellipta) + controlled studies.

Scale‑Up Phase

  • 2020 Symbicort clearance; 2019 ResMed acquisition.

References: FDA PR · JACI 2016 · ERJ 2021 · ResMed deal

6.9.2 Validic – Connected Health Data Platform

Device‑data platform with 600+ supported devices by 2016; design‑partner/OEM model and an Oracle Cerner EHR partnership (2022) drove mid‑scale, sustainable growth.

Product‑Market‑Fit Phase

  • 2014 Series A $5M; 2014–16 device integrations scaled; 2022 Oracle Cerner.

Scale‑Up Phase

  • 2015–25 follow‑ons (~$30M total); Tenovi integration (2025).

References: Series A · Oracle Cerner · Devices · Tenovi

6.9.3 AvaSure – Virtual Sitter/Tele‑sitting for Hospitals

Tele‑sitting and virtual nursing with hard‑ROI pilots (e.g., ~$9M annual savings) scaled to 1,000+ hospitals by 2022; hardware + SaaS underpins durable expansion.

Product‑Market‑Fit Phase

  • 2008–15 pilots; systematic‑review evidence; ROI case studies.

Scale‑Up Phase

  • 2022–25: 1,000 → 1,100+ hospitals; expansion into virtual nursing.

References: Growth PR · Falls results · Virtual nursing · UCHealth case

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