Running a healthtech or medtech startup comes with countless demands. Whether securing funding, navigating regulatory hurdles, or scaling operations, the leadership load can quickly become overwhelming.
Yes, there’s always the option of getting some “extra help” if your workload is becoming too much to handle, but let’s be honest:
Hiring a full-time C-suite team is likely financially out of reach.
Does this mean you should simply ignore your pressing need for experienced leadership and just “suck it up?” No. What you need is a fractional executive.
Fractional executives provide high-level expertise on-demand, bridging the gap between limited headcount and full-scale executive hiring. Instead of a full-time commitment, these leaders embed themselves in your company’s mission and offer strategic guidance and execution power without the heavy financial burden of a permanent hire.
Below, we will discuss fractional executives in more detail, their value, and when hiring one makes sense.
What Is a Fractional Executive?
A fractional executive is a senior leader who works with a company for a set number of hours or days per month. Like a normal C-suite member, this executive provides strategic direction to your medtech or healthtech startup and hands-on leadership.
However, unlike traditional parties who offer advice from the sidelines, fractional executives take on an active role in decision-making and operations. These experts are able to fill in gaps in your leadership.
It’s like having a second founder or co-pilot on your team — only you retain all control, and you don’t have to deal with a full-time hire on board.
The Difference Between Fractional Executives and Consultants
Having read the previous section, you’re likely saying:
“A fractional executive sounds a lot like a consultant.”
True, there’s some overlap in what fractional executives and consultants do. But, believe it or not, these two roles are markedly different, and knowing the difference is key to finding the right leadership assistance.
Consultants analyze problems and propose solutions but rarely see the solutions through to execution. They are notorious for engaging an organization, drafting an extensive list of to-do items, and handing them over to the CEO or founder.
On the other hand, a fractional executive integrates seamlessly into a company’s leadership structure, ensuring that strategies are not only developed but implemented successfully. Their dynamic and ongoing role aligns closely with a company’s growth trajectory.
Common Fractional Executive Roles in Healthtech and Medtech
Startups in these industries many times benefit from fractional CEOs, COOs, CMOs (marketing), and CMOs (chief medical officers).
These leaders bring specialized expertise in regulatory compliance, clinical operations, market expansion, and investor relations to the table. Their experience ensures that critical early-stage company functions are managed efficiently without the requirement of a long-term and costly executive hire.
How Fractional Executives Integrate Into a Startup
Unlike full-time hires, fractional executives work within a flexible framework that adjusts to the company’s requirements at any given point in time. They may oversee specific departments, guide strategic initiatives, or step in to stabilize operations during pivotal growth phases. They may free the founder up to allow them to do what they do best, namely focus on product research and development.
Their involvement is hands-on. When a fractional executive joins the team, they provide leadership and management assistance to help keep business functions on track and a company’s growth trajectory upward.
Signs Your Startup Needs a Fractional Executive
Startups often reach a point where leadership gaps critically hinder progress. When budget constraints prevent a full-time executive hire with specialized expertise, a fractional executive offers a dynamic solution.
Recognizing the Need for Fractional Leadership
Many founders reach a point where they are spread too thin, juggling high-stakes decisions without the support of experienced leadership. If your startup struggles to scale, faces operational inefficiencies, or lacks credibility in the eyes of investors, bringing in a fractional executive could be just the answer you’re looking for.
Addressing Growth and Execution Challenges
Scaling a startup requires more than a great product — it demands operational excellence. If your company is experiencing rapid growth but struggling to implement structured and/or standardized processes, a fractional executive can provide the leadership necessary to drive the execution and efficiency you require.
Strengthening Investor Confidence
Healthtech and medtech startups often rely on institutional funding to fuel growth. Investors seek full assurances that a company is backed by an experienced leadership team, which a fractional executive can provide.
A fractional executive brings credibility to your team, instilling confidence in stakeholders and increasing your chances of securing investment.
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Why Choose a Fractional Executive Over a Consultant?
Should you seek out a consultant or a fractional executive?
You’re likely asking this question if you’re in the market for expert leadership services.
It all comes down to what you need. If your company is like most healthtech or medtech startups that require hands-on leadership, then you most likely need a fractional executive.
Here’s why.
The Hands-On Approach of Fractional Executives
While consultants provide high-level guidance from afar on specific challenges, fractional executives embed themselves in a company’s culture and operations, working closely with the founder or CEO to drive real change. Fractional executives are accountable for results and ensure strategies translate into measurable outcomes.
Long-Term Impact vs. Short-Term Advice
Consultants are typically engaged for short-term narrowly-defined projects or problems, whereas fractional executives provide ongoing leadership and oversight from the trenches with the CEO or founder. Their deep and sustained involvement helps startups accelerate their momentum and effectively navigate growth challenges.
The Broad Scope of a Fractional Executive’s Role
When you contemplate a fractional executive’s role, you may end up asking:
“What can’t a fractional executive do?”
Depending on a startup’s needs, these executives can conduct operational audits, lead strategy sessions, or fill short-term advisory roles. They can also take direct ownership of critical functions such as operations, fundraising strategy, go-to-market (GTM) planning, and team development.
Their ability to execute across multiple domains makes them indispensable for early to mid-stage startups seeking structured, hands-on leadership without the commitment of a full-time hire.
The Key Benefits of Hiring a Fractional Executive
It might help to think of a fractional executive as the Swiss Knife of an early- to mid-stage medtech or healthtech company. These executives offer a powerful and indispensable combination of expertise, flexibility, and cost efficiency, making them a supremely attractive option for startups.
If you’re on the fence about hiring a fractional executive, these benefits are likely to change your mind.
Cost-Effective Access to Top Talent
Hiring a full-time executive can be a significant financial burden for an early-stage startup. Fractional executives provide access to high-caliber leadership at a fraction of the cost, allowing startups to allocate resources efficiently while still benefiting from top-tier expertise.
Immediate Strategic Impact
With years of industry experience, fractional executives bring fresh perspectives and actionable strategies that drive immediate improvements in business operations, market positioning, and investor relations. Their ability to quickly assess challenges and implement solutions makes them a valuable asset for growing startups.
Scalability and Flexibility
Business needs evolve, and startups require adaptable leadership. Fractional executives offer scalable engagement models, allowing companies to increase or decrease their level of involvement based on immediate priorities and financial capacity.
Strengthening Internal Teams
A fractional executive fills critical leadership gaps, but did you know that the same executive can also mentor existing team members and enhance internal capabilities and output?
By setting the right examples, they can help build a strong foundation for long-term success and ensure that knowledge and best practices remain embedded in the company even after their engagement ends.
Finding the Right Fractional Executive for Your Startup
You can’t go wrong with a fractional executive when you want a more hands-on approach. With that said, a number of firms offer fractional representation today, but many will not be a good fit for your company.
How do you find the right fractional executive for your medtech or healthtech startup? Here’s what you can do.
Choosing Based on Experience and Industry Knowledge
Healthtech and medtech startups operate in highly regulated environments, making industry-specific expertise absolutely critical. The right fractional executive should have a deep understanding of market dynamics, compliance requirements, and growth strategies relevant to your business. The executive should also have a proven track record of scaling companies.
Establishing Cultural and Leadership Fit
Beyond industry experience, a fractional executive should align with your company’s culture and leadership style. Their ability to integrate seamlessly with your team and drive collaborative decision-making will enhance the success of their engagement.
Structuring the Engagement for Success
Clearly defining goals, deliverables, and engagement terms is important for a productive and successful relationship. Determining whether the executive’s role will center on strategy, operations, fundraising, or another key area will help ensure that their focus aligns with your startup’s most pressing needs.
Is It Time To Bring on a Fractional Executive?
If your startup is at a growth inflection point and hampered by leadership gaps, a fractional executive is absolutely the missing piece. These experts offer the strategic direction and operational leadership required to scale effectively and efficiently without the long-term commitment of a full-time hire.
For healthtech and medtech founders, bringing in the right leadership at the right time can mean the difference between stagnation and acceleration.
Are you interested in exploring your fractional leadership options?
Visura can help you find the executive talent that meets your startup’s needs. Contact us to discuss how to put your company in a position for accelerated growth.
