The world of medtech partnerships is complex, but for startups looking to raise capital or make strategic connections, understanding how to approach big players is crucial. Medtech partnerships often involve collaborations between startups and large, established companies (strategics) to drive innovation, enhance market reach, or pursue mutually beneficial growth opportunities. Successful partnerships require a well-crafted approach, relationship-building, and a deep understanding of the strategic’s needs and objectives. 

At LSI Europe ’24, a panel of industry experts—including Elizabeth Hoff (CEO, Somavac), Bhavesh Barot (General Manager, Surgery - International Region, GE HealthCare), Ken Nelson (Partner, MedTech Advantage), and Liam Burns (CEO, Qaelon Medical)—shared their insights on building successful partnerships with strategics. Their advice focused on preparation, storytelling, and understanding the complex structure of strategics.

Doing Your Homework: Preparation is Everything

When approaching strategics, preparation is key. As Elizabeth Hoff emphasized, knowing the company and the individual you’re meeting with is a non-negotiable part of the process.

“I meet a lot of young entrepreneurs who have not worked at big strategics, and what I tell them is to read a book on sales, as generally they’re engineers fresh out of school. Do your homework on them and their business goals,” Hoff advised. “Show up at a strategic having done your homework on them and their business.”

This preparation goes beyond just reading the most recent quarterly reports. According to Bhavesh Barot, it’s about tapping into the right sources of information:

“Getting on the phone with salespeople and sales leaders really gives you insight on what’s happening right now for that organization,” Barot said. “They’re right in front of their main customers and can give you great information.”

This effort to understand the strategic’s pain points and business priorities can be the difference between a successful pitch and a wasted opportunity.

Tailoring Your Pitch: Know Who You’re Talking To

A common mistake entrepreneurs make is presenting the same pitch deck to every strategic they meet. As Ken Nelson pointed out, the key to successful medtech partnerships is adapting your story to the audience.

“Some people will use the same deck regardless of who they’re talking to, which I think is a big mistake,” Nelson said.

Hoff agreed, emphasizing the need to focus on the strategic’s sales force and how your product can fit seamlessly into their operations. “I would change the pitch deck according to how it ultimately will be commercialized within that strategic and how it may or may not help them,” she noted.

Barot reinforced this idea: “If they’ve pivoted the other way around and said, ‘Here’s where I see a gap in your portfolio, here’s where I could help you build that market leadership position,’ you then start talking their language as well.”

Understanding the organizational structure of the strategic is equally important. According to Hoff, many entrepreneurs fail to recognize the significance of speaking with the right stakeholders within the organization.

“Know who reports to whom. Know who the CMO is and what the difference between BD and a business unit leader is,” Hoff explained. “If they want to be a student of a big company, they have to learn what org charts are and maneuver around them.”

Building Relationships and Managing Expectations

Successful partnerships are built on relationships that take time to nurture. Elizabeth Hoff suggested a strategic approach:

“Don’t go in the first meeting being all gangbusters… just get on the radar screen,” she said. “Say what you’re going to do in the next quarter. That gives you a reason to connect with that large company later.”

Liam Burns elaborated on this point, noting that building rapport is a process of continual follow-up: “If you promise information to a strategic, you’ve got 24 hours to respond.” He also recommended following up gently after about two weeks, making it clear you respect their time.

On the topic of consistent communication, Barot added: “It’s about the major news, not the full story. If they’re curious, they’ll check out your website and see what got updated on your news section.”

Understanding the Process of Partnerships

When pursuing partnerships with strategics, entrepreneurs need to understand that the process is far from straightforward. Burns explained that decision-making within a strategic follows a three-step process:

1. Strategic Fit: Understanding how the startup’s technology aligns with the strategic’s goals.
2. Financial Impact: Demonstrating how the technology will influence revenue, sales force efficiency, or profitability.
3. Cultural Fit: Proving that the startup’s culture and leadership align well with the strategic’s business philosophy.

According to Barot, cultural fit can make or break a deal. He advised entrepreneurs to consider how their technology will contribute to the strategic’s competitive positioning: “Strategics are motivated by who else might buy this, and they want to continue to have market share and stay ahead of their competitors.”

Hoff emphasized that understanding the decision-makers is critical: “Find out who will be in the room and on that call in the very end. If you don’t ask, shame on you.”

Closing the Deal: When to Engage and How to Follow Up

The timing of engaging strategics can be a delicate balance. Hoff noted that it’s important to avoid appearing too eager or pestering while also being persistent enough to stay on their radar.

“You need to strike a balance. Snippets are better in terms of updates, not dissertations,” Hoff advised. “Send them a headline, something newsworthy like ‘We just got FDA clearance,’ and let them decide if they want more details.”

Barot added a practical tip: “Brevity is an art form. Keep it brief, keep it concise, and then allow them to click into it.”

Ultimately, successful partnerships are about presenting a compelling, tailored story, building meaningful relationships, and staying persistent. And as the panelists emphasized, it’s about finding the right cultural fit and proving your value, not just in terms of revenue but also as a reliable, innovative partner.

Conclusion

Forging successful medtech partnerships is about preparation, persistence, and understanding the nuances of each strategic. By doing thorough research, tailoring your pitch, and building genuine relationships over time, you can increase your chances of securing valuable partnerships that propel your innovation to market.

Want more insights like this? Join us for our next medtech conference from June 10th-13th at the Ritz-Carlton, Millenia Singapore.