By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    improving patient experience
    6 Ways to Improve Patient Satisfaction Within Hospitals
    December 1, 2021
    degree for healthcare job
    What Are The Health Benefits Of Having A Degree?
    March 9, 2022
    custom software development is changing healthcare
    Digital Customer Journey Mapping and its Importance for Healthcare
    July 21, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Can Thinking Younger Make You Live Longer?
    April 20, 2011
    Image
    Obesity’s Outlook Unchanged
    June 13, 2011
    When It’s An Emergency Elderly Not Treated As Well in Hospitals
    July 16, 2011
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Changing Dynamics of Medtech Investing
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Changing Dynamics of Medtech Investing
BusinessNews

Changing Dynamics of Medtech Investing

PatrickDriscoll
Last updated: November 10, 2011 4:40 pm
PatrickDriscoll
Share
4 Min Read
SHARE

It has been recently postulated and debated whether there has lately been a “Series A Crunch” in financings — not specific to medtech (which we solely focus on here) but for all investments. The evidence had been suggestive that a recent increase in the number of seed financings was taking the wind out of the sails of the next round, being Series A, of course.

It has been recently postulated and debated whether there has lately been a “Series A Crunch” in financings — not specific to medtech (which we solely focus on here) but for all investments. The evidence had been suggestive that a recent increase in the number of seed financings was taking the wind out of the sails of the next round, being Series A, of course.  More companies with seed financing has led to fewer companies needing funding in the next round.  The dynamic underlying this is suggested by some as being that investors put money into seed rounds not necessarily to capture a greater share of the potential windfall when the company goes to IPO (how often does that happen?), but to take advantage of the opportunity for “mini-exits” in which a nice return can be made by capturing the premium available when a company’s promising technology has been sufficiently developed to allow the company to be sold to allow an innovation-hungry established company to take the product through the rigors of final development and (in medtech) regulatory approval.

I personally do not track the stage of investment that closely, although I can say that anecdotally (from the amounts and numbers of medtech financings I see in Series, C, D and even E) it appears that investment has indeed shifted to later stage, presumably so that investors can mitigate the uncertainty and risk of the unknown. 

What I do track is the aggregate medtech investment month by month, and here I see that, despite the idea that aggregate investing has been in decline, there has been an increase, especially from 2010 to 2011 in total medtech investing.  See this below in a graphic illustrating medtech financing from 2009 to 2011 (to date).

More Read

medical weight loss benefits
Medical Weight Loss: What is it and Why Does it Work?
Reinvigorated Consolidation Within the Healthcare Revenue Cycle
Having a Social Media Crisis? Here’s What to Do
Here’s Why The Lab Automation Market Is Growing
Sequestration and Healthcare: What Organizations are Affected? (Part 1)

Source: Compiled by MedMarket Diligence, LLC

 

Although it should be clear, despite the volatility, that investment is up in 2011, it does become more clear that this is the case when looking at the data on a rolling three-month average (please excuse the other difference that the graph below was done in Excel, while the one above was done in Google Docs):

Source: Compiled by MedMarket Diligence, LLC

 

When the financing takes place — seed funding or later — certainly makes a big difference to the companies trying to innovate.  Cash is needed at every step of the process and any dynamic that shifts the relative amounts for stages will alter the nature of innovation.  I am happy to have others track investments by stage more thoroughly than I have time for and I appreciate the insights coming from that effort.  

I personally am just pleased to see that 2011 looks better than 2010.

TAGGED:MedTech Investing
Share This Article
Facebook Copy Link Print
Share
By PatrickDriscoll
Follow:
I serve the interests of medical technology company decision-makers, venture-capitalists, and others with interests in medtech producing worldwide analyses of medical technology markets for my audience of mostly medical technology companies (but also rapidly growing audience of biotech, VC, and other healthcare decision-makers). I have a small staff and go to my industry insiders (or find new ones as needed) to produce detailed, reality-grounded analyses of current and potential markets and opportunities. I am principally interested in those core clinical applications served by medical devices, which are expanding to include biomaterials, drug-device hybrids and other non-device technologies either competing head-on with devices or being integrated with devices in product development. The effort and pain of making every analysis global in scope is rewarded by my audience's loyalty, since in the vast majority of cases they too have global scope in their businesses.Specialties: Business analysis through syndicated reports, and select custom engagements, on medical technology applications and markets in general/abdominal/thoracic surgery, interventional cardiology, cardiothoracic surgery, patient monitoring/management, wound management, cell therapy, tissue engineering, gene therapy, nanotechnology, and others.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025
Learn how to Renew your Medical Card in West Virginia
Learn how to Renew your Medical Card in West Virginia
Health
May 15, 2025
Dr. Klaus Rentrop Shares Acute Myocardial Infarction heart treatment
Dr. Klaus Rentrop Shares Acute Myocardial Infarction
Cardiology
May 13, 2025

You Might also Like

endoscope maintenance
News

The Complete Guide To Endoscope Maintenance

April 28, 2023

Incentives Matter

February 8, 2012

Science is Spooky–Thoughts from the Other Side of Reality

November 26, 2012

Sun Screen Spray Sets Man on Fire

June 3, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?