Last week, SD medtech startup Carlsmed announced it had raised $2.5 million. This is an opinion piece written by the company’s part-time CFO, Alexander Arrow, a Harvard Medical School-trained doctor. This is his opinion on the significance of this raise in the context of the spinal implant market.
Last week a two-year old medtech company, Carlsmed, closed an over-subscribed $2.5 million financing round — some 250% of its goal of raising $1 million.
The fact that our young company, which has yet to launch its first product, had so much investor interest that it had to draw the line and turn away investors is itself a remarkable fact. Even more remarkable is that this happened during an economic recession.
But neither of those facts is the most significant aspect of this early, robust capital raising event.
The most significant fact is that this marks the beginning of the “personalization” of the spinal implant market.
This working capital allows the company to begin to provide surgical plans and 3D-printed titanium alloy implants to surgeons with a manufacturing lot size of one – each implant will be personalized to the unique shape of each patient’s spine bones (vertebrae).
In a future in which off-the-shelf, one-size-fits-all medical implants are as rare as one-size-fits-all dentures are today, this financing kicks off the first real entrant into the race to become the definitive personalized devices manufacturer.
We believe certain other companies will also abandon the idea of standard shapes and sizes in the most intimate of products, permanent metal implants. For those of us whose health conditions warrant permanent metal implants, who would choose a standard shape (“off-the-shelf”) implant over a personalized one that fits our unique anatomy?
Those who get to benefit from the latter will be able to trace their opportunity back to June 2020, when Carlsmed received the working capital it needed to launch its product, from investors clamoring to give it funds. Good ideas, executed by effective management, attract capital. Even during a recession.