How to Showcase Innovation to Attract Funding

Most healthtech founders don’t get a “no” from investors. But that’s a BAD thing. Because they don’t get the money either. They get silence. Endless follow-ups. Polite interest… followed by nothing. Not because the idea is bad. But because the pitch lacks proof. And that’s the only currency that counts in healthtech. You’re often raising: BEFORE clinical trials BEFORE commercial scale BEFORE regulatory approvals Here’s how you can bridge the credibility gap and raise funding early: 1. Prove the problem is real (and costly) Use real-world stats from peer-reviewed studies or government data. The more specific and costly the problem, the more investable your solution feels. Example: “20% of diagnostic errors stem from image misinterpretation.” 2. Use early pilots to prove outcomes, not just usage A working prototype isn’t enough. Even pre-commercial, you can run: -Clinical pilots (10–50 patients) for health outcomes -Operational pilots to track time saved, error reduction, throughout gains 3. Validate from the front lines, not just the lab A quote from a nurse who uses your product 10x a day beats a generic testimonial from a CIO. Clinicians, procurement heads, and payers understand ROI and adoption - their support carries real weight. 4. Build a clear path to scale before the money arrives Investors want to see how you’ll grow from 1 to 100. Define your regulatory strategy, GTM plan, and business model early. Show the infrastructure and systems you’ll need to scale - don’t wait for the money to figure it out. 5. Know what “proof” looks like at your stage At pre-seed: expert interviews + MVP + LOI At seed: pilot results + early revenue + FDA submission At Series A: revenue growth + multi-site usage + clinical publications Reverse-engineer your path and build with intention. You don’t need millions to show traction - just the right proof. In healthtech, evidence is everything, where lives, compliance, and capital are on the line. Having been on both sides of the table, I can tell you: the pitch that wins isn’t the flashiest - it’s the one with undeniable proof. Not sure if your pitch deck makes the cut? For a limited time, I’m providing free pitch-deck reviews to Early stage healthtech entrepreneurs. To get access, DM me ‘REVIEW’. #investment #founders #startups #healthtech

How This Space Tech Startup Secured $5.5M (Without Giving Up Equity). Last year, I invested in Raven Space Systems. They developed a novel way to 3D print aerospace hardware: • Faster • Cheaper • More efficiently Before pursuing VC money, they secured $5.5M through grants from NASA, Air Force, and The National Science Foundation. This was pure capital for R&D to: • Validate their technology • Access specialized facilities • Build government & commercial credibility Incredible benefits, yet not without challenges. Applications are competitive, time-consuming, and often come with restrictions on fund usage. 6 steps for capital-intensive startups to access non-dilutive funding: 1) Find the Right Grant Programs → Focus on SBIR (Small Business Innovation Research) → STTR (Small Business Technology Transfer) programs. → These offer billions annually in non-dilutive funding for early-stage R&D. Key Agencies: NASA, NSF, DoD, (AFWERX), USDA, and others. 2) Prove Your Tech Solves a Big Problem → Funders want mission-critical solutions over "cool" innovations. → Eg: NASA funds projects that improve performance in space exploration. → Use data or case studies to demonstrate the urgency of the problem → And the effectiveness of your solution. 3) Develop a Clear Proposal → Specific R&D milestones → Measurable outcomes → Commercialization plans Align your proposal with the funder's mission and values and highlight how your project advances their goals. 4) Leverage Strategic Partnerships Strengthen by collaborating with universities, labs, or prime contractors. E.g: Raven partnered with the University of Oklahoma for material testing and technical validation. Partnerships mean specialized equipment and critical expertise. 5) Engage with Grant Officers → Reach out to program managers before applying → For insights on aligning your application with agency priorities → Clarify any ambiguities and tailor your proposal accordingly 6) Iterate And Improve → Treat rejections as opportunities to learn → Many startups win grants on attempt 2 or 3 → Refining on feedback can significantly improve success rates After validating their tech with grants, Raven then raised VC to: • Scale manufacturing • Build sales teams • Enter new markets Validate with grants. Scale with VC. Combine both for a winning position. ____________________________ Hi, I’m Richard Stroupe, a 3x Entrepreneur, and Venture Capital Investor I help early-stage tech founders turn their startups into VC magnets Enjoy this? Join 340+ high-growth founders and seasoned investors getting my deep dives here: (https://lnkd.in/e6tjqP7y)

During panels, I often am asked what pre-revenue/pre-funding early-stage B2B startup, can do to demonstrate traction. Key steps to consider: 1️⃣ Develop a Proof of Concept (POC): Utilize tools like Figma or Bubble to create a tangible version of your product. Presenting this to potential customers and investors enhances credibility and allows for the product to come to life. 2️⃣ Secure Letters of Intent (LOIs): Obtain commitments from potential customers through legally binding documents indicating their intention to purchase or trial your product upon completion, showcasing market demand. 3️⃣ Conduct Comprehensive Market Research: Showcase engagements with companies to validate your product and assess market desire. Highlight insights gained from customer interactions to demonstrate market viability. 4️⃣ Define Your Market Position: Clearly understand direct and indirect competitors, acknowledging their potential impact. Conducting thorough market research and obtaining significant customer feedback will refine your positioning and allow to be ready to answer questions about your thesis and product. 5️⃣ Prepare Your Future Team: Have a skilled team ready to join once funding is secured, demonstrating readiness to scale. In a competitive market, showing resourcefulness and early product demand can increase your appeal to investors, positioning your startup ahead of others. #startup #earlystage #prerevenue