While Fogarty Innovation might be best known for its company-in-residence (CIR) program, which provides a multi-year home for medtech companies, not everyone needs or is ready for this holistic support that spans ideation to delivery.
The Company Accelerator Program (CAP) serves a unique niche by supporting startups in later stages, such as Series A or B funding, as they aim to accelerate growth. It provides targeted guidance to help companies navigate specific challenges, such as developing a commercialization strategy or addressing reimbursement hurdles.
Unlike CIRs, which are onsite, CAP companies can take a hybrid approach: Ideally, geography permitting, they visit the Fogarty campus to connect with the team before working together virtually. The model’s shorter duration and broader geographic reach allows Fogarty to offer more services to different types of companies—serving a total of 20 since the program’s inception in late 2020.
CAP companies help expand Fogarty’s mindset, opening doors to new concepts
The benefits are certainly not one-sided. While the program has been transformative for the companies involved, it’s also been positive for Fogarty’s growth by providing a broader industry perspective, explained Mike Regan, chief innovation officer.
“While Silicon Valley is a hotbed of innovation, it’s interesting to expand our reach and learn about other segments of the industry that tend to focus on different types of problems—for example, neuromodulation and active implants are big in Minnesota and back east there are more ophthalmology, orthopedic and tissue engineering companies.”
Equally fascinating have been the ideas developed by international companies. “Because they have different healthcare delivery systems than we have here in the U.S., they’re often solving a problem or addressing a need that’s different from what we would typically see,” he said. “This gives us a more expansive perspective and helps us consider different approaches—including new business, policy, and healthcare models—that can broaden our thinking in terms of options and ideas that we can apply to challenges here.”
The CAP appeal
The program has had no problem attracting participants—some of whom come from recommendations and others who apply on their own. “Entrepreneurs know that innovation is pretty complex, so they are looking for help, and they come to us based on our capabilities and all we have to offer, including our broad cross section of subject matter expertise,” said Regan. He also believes additional credibility comes from founder Dr. Thomas J. Fogarty and CEO Andrew Cleeland. “Their deep respect within the industry makes companies eager to learn from their expertise and the proven framework they have established,” he said.
Regan also lauds the impressive team Cleeland has assembled. “We are highly collaborative, working seamlessly together while bringing diverse perspectives and expertise. This synergy allows us to effectively support companies and entrepreneurs at any stage of their journey,” he said.
In addition to forming a strong in-house team, the Fogarty coaching staff are deeply connected within the ecosystem, providing access to a vast network of professionals ready to assist in key areas such as company formation and strategic introductions to influential providers. “We’re fortunate to have a community of experts eager to support our mission and our companies. That level of engagement is unique, and our track record—along with the pedigree of those associated with us—instills confidence and optimism that we can help teams navigate their challenges,” he said.
Rigorous selection process focuses on fit
Given the appeal of the CAP, applicants are numerous. After they apply on the website, Regan and chief medical officer Zach Edmonds, MD conduct the first screening. “We interview everyone who applies to discuss their ideas and ensure we truly understand their goal,” said Regan.
Once they’ve established that an idea has potential, they bring in a broader group of the Fogarty team to dig further into specific elements of the company, such as marketing and engineering. The senior staff then come together to evaluate the company’s fit against three main criteria:
- Is the candidate addressing an important unmet clinical need?
- Will the team be open to feedback and able to contribute as part of the Fogarty community?
- Does the company have the likelihood of being funded?
The last one is critical because without resources, teams won’t be able to advance their idea, not only in the short term but also over the long haul. “We’ve seen some great ideas where the economics just didn’t work for some reason; for example, we realized the company had a great clinical solution but couldn’t make the product at a competitive price point,” Regan explained.
Once they’ve completed this due diligence, the Fogarty team discusses what the company needs from FI, and then they jointly prepare a development plan that outlines what they intend to address over the next six months, the typical duration of a CAP company. “Even when their time with us ends, they’re always part of the Fogarty family, and we continue to talk to many of our graduates. But hopefully through CAP, we’ve been able to help clear roadblocks so that the company can move forward,” said Regan.
Success wears many hats
Reflecting on the CAP companies that have come through the program to date, Regan points to multiple successes, yet also underscores that success can come in different forms.
For example, the inaugural companies, Ultrasight and Flosonics, already had regulatory approval when they joined CAP and were aiming to get their products to market. The Fogarty team helped them develop their playbooks, and both have since successfully graduated and commercialized.
In another instance, the CAP guided a team in refining their product strategy after reassessing their initial target market. “When they pivoted to a different therapeutic area using a similar technology, it turned out to be exactly what a multinational company was looking for—and they were acquired,” Regan said.
However, success isn’t always straightforward, he noted. “We’ve seen talented individuals pursuing the wrong opportunity, and our role is to help them recognize that—even with a great idea—the expected market opportunity may not be there. In these cases, success isn’t just about the idea itself, but about redirecting these accomplished professionals to areas where their skills and expertise can have a greater impact.”
In this way, the success of CAP companies is as unique as the entrepreneurs behind them.