The Michigan State Medical Society is partnering with Lansing-based Common Wealth Enterprises to launch Quantum Medical Concepts, an investment fund that will invest up to $250,000 across two to three medical tech startups each year.
“MSMS has several members who are already innovators in the medical field and some even hold patents for devices they have designed for their patients,” says Ben Louagie, COO of the East Lansing-based organization. “Through Quantum Medical Concepts, we can help grow businesses that are on the forefront of health care innovation in the state while providing them access to more than 15,000 medical professionals in our network.”
The new startup fund will consider only applicants related to the medical field. Startups must be Michigan based or have plans to expand into Michigan, Louagie says.
Prior to providing funding, the medical society and Common Wealth Enterprises, a business startup consulting company, will assess the various needs of the selected businesses, ranging from operations management and logistics to branding and identity management.
“Company founders are often very knowledgeable in their field of expertise, but don’t have the time to focus on other important functions that are required to grow their businesses,” says Tom Stewart, CEO of Common Wealth, which runs the NEO Center business incubator in Lansing. “By offering support for those management functions that the founders lack, Quantum can increase the likelihood of success and minimize the investment risk.”
The process will help startup owners focus on identifying their customers, what they can do for them, how they can acquire the new product, how to make money, what ways to design and build it, and the process of scaling the startup business, Louagie says.
After deciding whether or not the company is viable, Quantum will negotiate an agreement over the degree of autonomy the startup has and how much oversight Louagie and his colleagues will give the new business. “We are going to offer as much or as little as the entrepreneur needs. We want to let them to be creative, and build what they want,” Louagie says.
Quantum will likely announce the first its investments in late April.