The wave of medtech and biotech startups is rising fast
Lithuania has recently been rapidly establishing itself as one of the leading countries in biotechnology. According to data released this year by the OECD (Organisation for Economic Co-operation and Development), the country ranks third in the world regarding total investment intensity in research and development. Innovation development experts see a lot of potential for medtech startups in Kaunas, especially those that choose to grow in preacceleration programs. Such programs help young scientists and technology developers develop ideas, create innovative solutions, and overcome market challenges.
Today's health challenges drive the development of new technologies
"The post-COVID-19 imprint, the stress and uncertainty of war, and rising health costs are driving startup teams, scientists and researchers to find new solutions and bring them to market. This is a challenging and at the same time demanding job, which can take up to ten years", says Paulius Nezabitauskas, the Director of Tech-Park Kaunas.
The Tech-Park Kaunas accelerator, consisting of programs that have been used in Silicon Valley (USA) for a decade, has also been successfully adopted in Lithuania and provides startups with structured practical business skills.
"During the preacceleration program, more than half of the participating teams were focused on health and biotechnology solutions. This shows the potential that exists. Bringing together talent and training with international mentors, experienced entrepreneurial specialists, and working in open laboratories speeds up the development of new prototypes, where a small proportion will become marketable products," says Mr Nezabitauskas.
The need for "fast learning"
In early July, a panel of investor community representatives evaluated the startups' presentations at the Demo Day of the accelerator “Startuolis” preacceleration program at Tech-Park Kaunas. The medtech and digitech startup teams presented their progress in the preacceleration program.
According to one of the representatives of the jury, Darius Bagdžiūnas, an entrepreneur and private investor, having a member of the startup team with several decades of experience and competencies - both in business development and technical knowledge - is a huge advantage. "When I look at startups created entirely by students, I look for a single skill that could be called "fast learning". It involves both theoretical knowledge and practical development on the chosen topic, as well as jumping between topics," emphasizes the entrepreneur.
Calls for focus on communication skills
Creative thinking is important for startup innovation teams, adds Viktorija Trimbel, managing director at venture capital fund Coinvest Capital: "We value the ability of the startup's creators to focus on the essence of the problem and find the most effective, rather than the most popular, way to solve it".
In her opinion, preacceleration programs help teams to prepare for fundraising and provide them with the tools to make the process of attracting investment a smoother one. "It's useful to learn entrepreneurial and communication skills. For teams to attract the interest of investment funds, ideas need to have the potential to earn a return and to spread quickly. It is important to have not only an idea, but also a clear plan - who will do what, when, how, where, with whom at each stage. This also creates the need to be able to communicate and communicate it smoothly and convincingly," says Trimbel.
Helped a medical startup cash in on its value proposition
Medical technology start-up NutriHack is one of the winners of the program, which has earned a ticket to continue its innovation-growing journey in the Business Incubation Program. The team developed a virtual tool to help cardiovascular disease patients take better care of their health by adjusting risk factors in their daily lives and their diets through hands-on training.
"The idea came from doctors' daily work with preventive screening programs, the first step of which is very ineffective in Lithuania and other European countries. The seminars on the added value of the product were the most helpful in changing attitudes. It was these preacceleration program training that made us realize that value is an aspect that touches many seemingly unrelated groups of people," says Indrė Karaliūtė, CEO of the startup.
Investor attention on the scene
For some startups, the Demo Day scene was the first stage, which helped them to receive a positive assessment of their business potential. "We are creating a tool that helps small businesses discover nano and micro-influencers and make the most of this fast-growing marketing channel, as well as giving opinion makers a medium to monetize their audience and grow as content creators," says Rokas Staniulis, co-founder of the startup “Micma”.
Continuing their journey of growing their business after preacceleration, the startup's founders are committed to more one-on-one consulting and working to help attract investment. "For the first time, we did a presentation of our idea to a panel of investors. Several months of intensive work and refining the idea allowed us to prepare perfectly for the presentation. Perhaps unexpectedly, one of the most relevant lectures was on finance and the understanding we gained about financial year planning," says R. Staniulis.
Startup representatives emphasize that the preacceleration experience allows them to participate in international events where they can present their ideas and make contacts with potential investors and partners. This globalization trend helps Lithuanian startups to grow faster and integrate into the global market.
