Originally Published MX May/June 2003

EDITOR'S PAGE

Early-stage medical technology companies often find their earliest investors among an intimate group that includes the founders, family members, friends, and those with a commitment to the firms' reasons for existence. Such investors may support a company for a variety of reasons, not all of which have to do with its bottom line.

As companies grow and incur the need for additional funding, however, company leaders inevitably find themselves turning to venture capitalists and institutional investors whose demands can be much more severe. Such investors not only extract a high percentage of equity from a growing company, they may also impose significant performance demands and milestones on the firm. The single-minded goal of such investors is expressed in a simple mantra: return on investment (ROI).