Breaking Barriers in MedTech Fundraising

Fundraising Lessons from MedTech: Insights from Vessl Prosthetics’ Sydney Robinson

Raising funds for a MedTech startup isn’t just about pitching investors—it’s about building relationships, gathering insights, and positioning your innovation for long-term success. In a recent LinkedIn-Live conversation with Sydney Robinson, CEO of Vessl Prosthetics, we explored her journey through the fundraising maze.

Here are three key takeaways for entrepreneurs navigating the MedTech fundraising process:

#1 Seek Advice, Not Funding (At Least at First)

It’s tempting to jump straight into pitching mode when raising capital, but Sydney emphasized the power of approaching investors with curiosity rather than a sales pitch. “In the early days, I’d reach out and ask for advice, not funding,” she shared. This approach not only opened the door to more candid conversations but also built trust with potential investors. By demonstrating genuine interest in their perspective, founders can gather critical insights about market trends, investor expectations, and potential pitfalls—insights that are invaluable when it’s time to make a formal ask. Investors are more inclined to back founders they’ve helped shape than those who cold-pitch for cash.

#2 Stay True to Your Vision—But Be Flexible with Messaging

There’s a challenge to seeking advice: the sheer volume of feedback can be overwhelming, often conflicting from one investor to the next. Additionally, much of this feedback is based on quick impressions rather than the deep thought founders put into their MedTech vision. To navigate this, Sydney emphasized the importance of staying firm on the core vision while remaining adaptable in how it’s communicated. For MedTech founders, this means tailoring the message to highlight different aspects of the problem and opportunity depending on the audience—whether it’s clinicians, regulators, or investors. “We kept the vision intact but tailored the story to resonate with each stakeholder,” she explained. This balance—staying true to the vision while adapting the messaging—was key to Sydney's fundraising success.

#3 Identify the Tipping Point to De-Risk the Investment

Early-stage MedTech innovations often face skepticism due to regulatory hurdles, long development cycles, and uncertain reimbursement landscapes. According to Sydney, success lies in identifying and achieving specific milestones that reduce perceived risk—some through strategic effort and some through fortunate timing. For Vessl, the sudden expansion of reimbursement coverage significantly increased revenue opportunities for prosthetists handling fittings and maintenance, an unexpected but valuable stroke of luck. At the same time, they worked diligently to get a functional device on a user to evaluate performance and usability. “We asked investors early on what milestones they’d need to see to feel confident,” she noted. By working backward from those indicators—whether it’s clinical data, IP protection, or strategic partnerships—founders can structure their development and fundraising strategy around clear, credible milestones.

Final Thoughts

Fundraising in MedTech requires more than just a breakthrough product; it demands strategic relationship-building, nuanced storytelling, and a milestone-driven roadmap that reassures investors. Sydney’s experience underscores the importance of staying curious, adaptable, and focused on the key risk-reducing elements that drive investor confidence.