A Company with Backbone

Originally Published MX September/October 2002

COVER STORY

A Company with Backbone

In today's medtech marketplace, entrepreneurs who lack commitment need not apply—at least not if they expect to succeed.

"These are tricky times," says James E. Nicholson, founder and chairman of Cortek Inc. (Dedham, MA). "It is extremely difficult these days to take a raw idea and turn it into a viable company.

"Early-stage investors are mostly interested in technologies that they think have a high chance of making it, so that they can make a tremendous return on their money. And they find it difficult to invest in a company that has only raised a little bit of money and hasn't really proven anything with that round of money," says Nicholson.

Nicholson knows a little something about the expectations of investors. In September 2001, Cortek completed a fourth round of private financing for $10 million. Galen Partners (New York City) and The Federated Kaufman Group (New York City) were the largest participants in the round, which was also supported by previous investors.