Alphatec Manufacturing Inc.
This article was originally published in Start Up
Orthopedic Implants. Alphatec develops orthopedic trauma, reconstructive and spinal implant products, all based on titanium. The company manufactures a modular hip screw system, a total hip replacement system, a total knee replacement system and a line of spinal fixation devices.
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At In3 West, a medical device conference held in Las Vegas recently, Windhover Information convened a panel of venture investors to ask them what's in store for device companies seeking investments in the near future, and to address one nagging question: whether or not the heady funding levels of 2007 are sustainable, or even desirable. Certainly exits have become more challenging; consolidation has removed certain would-be acquirers and the IPO market has become more demanding; no company will get out there without at least $30 to $40 million in revenues, several on the panel felt. Others were feeling the pressure of having to carry portfolio companies for even longer periods of time; more complex technologies, lag times at the FDA, and the need to get companies not only to the commercial stage but to a revenue ramp were pushing up the number of years to an exit and total investment dollars. Many were optimistic that early stage deals, exits by acquisition and other unusual phenomena would continue to happen; but selectivity was the theme of the day.
Venture debt has become an increasingly popular financing option particularly among device companies. But, if not used properly, it can help sink rather than save a start-up.