Now in its third year, accelerator seeks to develop the next generation of
medical device companies and ideas
MEMPHIS, Tennessee, May 12, 2014 – Four entrepreneurial teams have been accepted in the 2014 ZeroTo510 medical device accelerator and will begin the 12-week program at the Memphis Bioworks Business Incubator on Wednesday, May 14. The 2014 participants are:
Blood Monitoring Solutions – This team, led by a recent graduate from Vanderbilt University, has created a tracking system device that reduces the amount of blood that is wasted in hospitals due to compliance parameters.
EndoInsight – Using patented technology out of Vanderbilt University, this company is bringing to market a novel low-cost carbon dioxide insufflation system that will help reduce the pain and discomfort associated with colonoscopies.
Innometrix – This team from Oxford, Miss., has cultivated a diagnostic technology that produces a biomechanical snapshot of the female pelvic floor that will give physicians better data prior to surgery.
Compression Kinetics– This team from Chapel Hill, N.C., has created a new type of compression sleeve, which uses a shape memory alloy to create a pressure wave to increase circulation throughout the human body and decrease peripheral edema.
“We received a high quality of applications this year, which made the selection process a challenge,” said Allan Daisley, director of entrepreneurship and sustainability for Memphis Bioworks Foundation. “In watching the development of the first two years’ companies, we have learned what types of concepts and products have the greatest likelihood of emerging into our ecosystem with both the potential for follow-on funding and long-term business viability. As a result, we chose to accept fewer teams into the program this year to be able to focus more time and attention on their success.”
The companies will matriculate through an intensive, mentorship-driven, 12-week program of instruction and hands-on activities designed to guide the entrepreneurs through the process. Each company chosen for the program will receive $50,000 in initial seed capital from co-investors Innova, a pre-seed, seed and early-stage investor focused on starting and funding high-growth companies in the healthcare, technology and healthcare technology fields across the state of Tennessee, and MB Venture Partners, a Memphis-based venture capital firm that provides equity capital and strategic direction to life sciences startups.
ZeroTo510, now in its third year, is unique among accelerator programs in that it focuses on medical devices, leveraging the regional strength of the Memphis area. Each selected entrepreneurial team must locate in Memphis for the duration of the program as a way of ensuring maximum benefits from classroom, collaboration, mentoring and the opportunity to tap into the unique Memphis medical device infrastructure and environment. The goal of ZeroTo510 is to help medical device entrepreneurs navigate the startup process, refine their business models and achieve the Food and Drug Administration’s 510(k) pre-market notification filing.
The program achieves results in a short period of time. Last year, three companies in the program received $100,000 of follow-up funding. Over the past two years, companies have achieved $4.5 million of investment funding. Three companies that have graduated from the program are now selling products in the marketplace, two are in a dormant phase to evaluate their long term potential and the remaining companies are in the product development stage and/or raising additional funds.
The accelerator program will conclude on “Demo Day” on August 14, when the participants will pitch to a group of investors, who will select the finalists, who will receive as much as $100,000 in additional capital funding and the opportunity to further develop their businesses in Phase II of the program. Also, there is additional funding potential if the investors are sufficiently impressed, as demonstrated by the $2.5 million Series A funding round received by Restore Medical Solutions, based on their impressive accomplishments achieved by Demo Day in 2012.
“Companies from across the United States want to participate in the ZeroTo510 medical device accelerator program with hopes of achieving the FDA 510(k) filing and obtaining capital, and they know that Memphis has the resources and talent available to them here,” said Jan Bouten, partner at Innova and ZeroTo510 advisor. “Because of the globally significant medical device industry here in Memphis, we are able to get these start-ups in front of decision-makers and mentors who can help guide them to success. We have had much success with our prior cohorts and are excited to support this next class.”
The program is operated by Memphis Bioworks Foundation, a not-for-profit organization that is leading the collaboration among public, private, academic, and government entities to accelerate the growth of the bioscience industry in the Memphis region, and Innova. ZeroTo510 is an initiative of the Greater Memphis Regional Accelerator, a program funded by Launch Tennessee and the State of Tennessee as part of Governor Haslam’s INCITE initiative. Named for its focus on innovation, commercialization, investment, technology and entrepreneurship, INCITE is designed to support innovation across the state and drive growth in the creation of knowledge-based jobs.
More information about the ZeroTo510 program and the 2014 cohort is available at zeroto510.com.
This project is funded under an agreement with Launch Tennessee and/or the State of Tennessee.