This Could Change Healthtech Startup Funding Forever

Dave Chase | Forbes | July 8, 2012

Crowdfunding has had success in high-tech, where people are eager to explore new models. MedStartr is bringing this concept to healthcare where it can be particularly challenging to get a startup off the ground. They have a twist on crowdfunding to address requirements of healthcare, an increasingly popular way to raise capital for startup technologies and interesting projects.

MedStartr is like most crowdfunding sites that are non-equity. They have plans later to have an equity model once SEC rules are clarified. In the meantime. MedStartr is attempting to hit the sweet spot that crowdfunding poster child, Pebble Technology hit. That is, customers get a great deal and early access to a product. Meanwhile, the startup gets non-dilutive funding and market validation to help it grow to the next stage.

Stephens had to bootstrap his business and didn’t have the money to advertise. His business flourished because of word of mouth referrals. A successful MedStartr project will have visionary customers be the initial users who can then lead to the first wave of word-of-mouth referrals.