Life Science Venture Capital Survey: Device Investors Feel The Sting Of FDA, Economy And Reform

Article preview from Start-Up - September 1, 2011

START-UP's first life science venture survey asked all VCs how they feel about the state of the industry. Medical device VCs' answers reveal feelings of being beaten down by the FDA and the recession, and general concerns about the sector's ability to generate returns.

 

Life Science Venture Capital Survey: Device Investors Feel The Sting Of FDA, Economy And Reform

Article preview from Start-Up - September 1, 2011

Device VCs have been through hard times before – remember the late 1990s. But this period appears darker than others because the principal worries center around the FDA, the venture capital pool and other infrastructure that VCs need to succeed.

With troubles at the FDA, device VCs might be tempted to consider investing outside the US where regulatory burdens are lower. Our survey suggests interest exists, but so do grave concerns about investing so far from home.

Device VCs must reconsider how new technologies will impact the health care industry. Device VCs still are drawn to technologies that promise to deliver treatments to huge clinical programs like congestive heart failure, but they're paying as much attention to diagnostics and other fresh fields of interest.

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No publication reviews leading edge companies and technology better than START-UP. Each issue of START-UP profiles the most important new product companies, identifies the hottest technology areas, reviews funds flowing into private companies and investment trends, and reports on university tech transfer licensing. Industries covered: pharmaceuticals, biotechnology, medical equipment & devices, and in vitro diagnostics.

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