5. Small market size
“When I was teaching at Carlson, one of the common obstacles was that it was a great idea, but there were so few people who would benefit. So the financing just wasn’t worth it,” Nelson said.
It was unfortunate for the people who did stand to benefit from the technology, but financing simply wasn’t available for the small market size.
Doing your homework on market size is important.
There are ways, however, to get a device approved through FDA as a compassionate use device for a small market, and then eventually develop the device for another market that is much larger, Nelson said. It’s important, though, to have a good finance person who can help you get through what could be a long journey.