|
Neurotech
Leaders Forum Brings Together Investors and Entrepreneurs
Nearly 60 neurotechnology executives and financial professionals
met in San Francisco on October 3 to discuss a number of management
and funding issues confronting the industry at the Second Annual
Neurotech Leaders Forum. The event was sponsored by Neurotech Reports,
with platinum sponsorship from Quallion,
LLC.
In a well received keynote address, Warren Grill of Case Western
Reserve University in Cleveland, OH discussed a number of the most
promising technologies coming down the road in the neuro space and
the challenges that must be met to fulfill that promise. Grill began
with an update on current successes in neurotechnology and then
moved into a discussion of the newest developments on the forefront
of the field. These include hybrid neural interfaces, the role of
stimulation in synapse formation and plasticity, and neural regeneration
Grill also spoke of some of the challenges confronting the industry,
which included long and costly product development and product approval
cycles, intellectual property inertia, regulation, and reimbursement.
A panel of venture capital professionals encouraged entrepreneurs
to seek funding despite the relative newness of the industry and
the conservative nature of many VC firms. Panelists included Roger
Quy from Technology
Partners, Andrew Firlik from Canaan
Partners, Daniel OConnell from NeuroVentures
Capital, and Heath Lukatch from Piper Jaffray Ventures.
Lukatch, whose background is primarily in biotech funding, spoke
of some of the differences in funding compound versus device companies
in the neuro space. Quy mentioned some challenges confronting the
neurotech device industry, which include less invasive neurostimulation
techniques, better bio-electrical brain interfaces, and targeted
drug/device combination therapies. Firlik offered Caanans
outlook on the climate for funding neurotechnology. The firm believes
that neuromodulation represents the single greatest market growth
opportunity in the medical device sector. He advised participants
to build awareness and expertise in neuromodulation and suggested
that VC firms might play a role in forming neurotech startups by
helping assemble management and research teams.
A spirited discussion among panelists and audience followed the
VC panelists introductory statements. One point that attracted
attention is the notion that many VC firms are conservative, and
lacking a clear example of a big winner in the neurotech device
space, its harder to attract startup funds. Joe Schulman of
the Alfred Mann Foundation pressed the panelists to consider their
batting average of financial return on initial investment for medical
device firms vs. other industries. The panelists generally agreed
that the risk is much lower in the medical device world.
Several neurotechnology startup CEOs made presentations during an
afternoon entrepreneur session. These included Peter Baillie of
Epic Biosonics in Victoria, B.C., a manufacturer of a totally implantable
cochlear prosthesis, Stanford Miller of Neuronetics in Duluth, GA,
a manufacturer of a transcranial magnetic stimulation device, Shmulik
Shany of NESS, Ltd. in Israel, which manufacturers arm- and leg-mounted
functional electrical stimulation systems, and Al Kyle of Walnut
Technologies in Andover, MA, which has developed a stroke intervention
device. Presenters were seeking between $5 and $10 million in series
A or B funding.
A management issues panel featured Robert Greenberg from Second
Sight Ltd., in Valencia, CA, Ann Bunnenberg from Electrical
Geodesics, Inc., in Portland, OR, and Arthur Prochazka from Neurokinetics,
Inc. in Edmonton, AB. Issues discussed at this session included
technical and financial barriers confronting startups, and reimbursement.
Among the large medical device and healthcare firms at the forum
were Johnson & Johnson, Viasys Healthcare, Boston Scientific,
and Guidant. Smaller firms present at the event included Neurometrix,
NeuroControl, NeuroPace, and Neurostream. Other venture capital
firms participating in the forum were Onset Ventures, McKinsey,
Versant Ventures, and Vento, LLV.
|
|