Crowdfunding Becomes Relevant for Medical Start-ups as TCB Medical Launches Campaign on Indiegogo to Bring Life-Saving Epinephrine Key to Market
HILTON HEAD, S.C., July 31, 2012 /PRNewswire/ — TCB Medical Devices, http://www.tcbmedicaldevices.com, has joined the growing ranks of start-up companies seeking to raise capital through crowdfunding to help bring its life-saving Epinephrine Key, which has been developed to administer epinephrine safely and effectively for severe allergy sufferers, to the marketplace, according to allergist Thomas C. Beller, M.D.
Beller, the founder and President of TCB, is an allergist in South Carolina who became frustrated that many patients with severe allergies did not carry epinephrine with them despite significant risk of dying from a severe allergic reaction. Epinephrine, often called “epi,” is the life-saving medication that reverses these reactions. “Most epinephrine injectors are bulky, pen-shaped devices that are awkward to carry. Consequently, most patients do not carry them,” says Beller. The Epinephrine Key was developed to be small enough to fit on any keychain so it could go everywhere your keys go and be available for emergency use when the need arises.
“Crowdfunding is quickly gaining popularity and may become the method of choice for start-up companies to raise funds,” says Beller. Crowdfunding involves networks of people collectively pooling their money to support efforts of other people or organizations. Typically, those who support the project are rewarded with one or more of the finished products once production is complete. In most cases, an organization seeking funding in this way is essentially selling their product before it is produced so that it can use the sales dollars to fund the development of the project. Crowdfunding was initially popular for small projects like unique books or music albums, but recently larger projects have had success and some companies have raised millions.
Crowdfunding has distinct advantages over venture capital funds. Venture Capital investors usually want equity for their investment, often taking over 50-80% ownership of the company from the founding inventor. Start-up founders are left with diminishing shares of the profit as further “rounds” of funding are sought, and by the time profits are seen, little is left for the inventor. Companies who use crowdfunding can maintain 100% ownership of their company. Beller, whose fundraising campaign has just been launched on Indiegogo.com at http://www.indiegogo.com/Epinephrine-Key, says, “I see no reason any small company would prefer venture capital to crowdfunding.”
To help fund TCB Medical Devices’ Epinephrine Key, visit its Indiegogo campaign at http://www.indiegogo.com/Epinephrine-Key.
For more information about the Epinephrine Key and its crowdfunding efforts, visit TCB Medical Devices at http://www.tcbmedicaldevices.com.
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SOURCE TCB Medical Devices