We began our second day at the conference with a session in the morning about software validation and verification for medical sensors and devices. While most MEMS designers and manufacturers probably will not face this problem directly, it certainly helps to know more about the FDA regulations and approval process if you are going to partner or become a supplier to a medical device manufacturer.
John Dexheimer, a partner at a venture capital firm First Analysis Ventures presented on the current state of the investment activity in the sensors and MEMS industries. What stood out from John's presentation is that an acquisition exit strategy (vs. going public) seems to work best for companies in our space. What seems to happen quite frequently was that sensor and MEMS start ups become suppliers to larger companies and then sometimes get acquired by them. When asked about acquisition valuations, John said that they were essentially all over the map. Our take? As always, VCs may be helpful with funding but you should primarily rely on your own funding sources and, most importantly, find initial customers. Having revenue and installations goes a long way if you are looking to be acquired by a larger company or financed by a VC.
By the way, John mentioned that they focus on later stage investments, so going to them if you just starting out with your venture may be difficult.
