Article preview from Start-Up - June, 2012
A deep dive of the portfolios of nearly three dozen device VCs shows that they’ve invested in certain therapeutic categories in the past including ophthalmic, cardiovascular, metabolic disease and spine. Like digging through soil to determine the climate conditions of eons past, the totals tell more about where the VC industry has been rather than where it’s going. But the past is sometimes of good indicator of what’s to come in both life and venture capital.
Article preview from Start-Up - June, 2012
In this issue, you’ll find our virtual census of the population of venture capital-backed start-ups and privately held companies. Each company resides in the portfolio of the more notable venture firms in the device universe. By tallying their vital information: year founded; capital raised; stage of development, we sought to paint a picture that’s rarely seen – the condition of those companies that haven’t yet been purchased or gone public.
The deep dive into VC portfolios gave us glimpses into the companies. But what about the areas in which they operate? In order to examine those markets more closely, we turned the company information a little bit on its side. The charts accompanying this article reveal just how much the leading venture capitalist firms have invested in certain therapeutic categories, as represented by the companies they’ve backed. Like digging through soil to determine the climate conditions of eons past, the totals tell more about where the VC industry has been rather than where it’s going.
The ophthalmic industry presents the perfect example of this. As measured by dollars invested and rounds raised, ophthalmic companies hold the top spot with over $1 billion in capital committed through 64 rounds raised by 17 companies since the mid-1990s (19 actually, if you include two start-ups for which fund-raising data couldn’t be determined.) Clearly, the ophthalmic field presents some opportunities for start-ups, but there’s a concern among some VCs that the sector is overheated. Gil Kliman, MD, general partner at InterWest Partners, one of the first firms to invest in the field, says he’s largely steering clear. His primary concerns center around the uncertainty of getting an ophthalmic device through the Food and Drug Administration, particularly as the agency demands PMA approval instead of 510(k).
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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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