Article preview from IN VIVO - October, 2012
Even as the rest of the global economy seems somewhat on a path to recovery, medtech-focused VCs, in the US at least, are experiencing a time of significant uncertainty and attrition: fewer dollars available for new investments, a trend away from early-stage deals, and fewer and smaller venture firms overseeing smaller new funds. For European medtech investors, there has been little of the gloom and uncertainty that the US venture capital community has experienced over the past several years, if only because there was no pre-bust bubble from which to fall.
Article preview from IN VIVO - October, 2012
It’s no secret that these are difficult times for venture investing in medical devices. Coming in the wake of the boom years of 2004–2007, when venture dollars flowed into medical devices in record amounts, the bust and even post-bust years have provided little relief for medtech investors. While the absolute number of venture dollars going into medtech hasn’t declined all that much, a palpable anxiety overhangs the sector. Regulatory pathways are no longer either simple or quick and reasonable returns to LPs remain difficult to come by. A much-discussed report from the Kaufman Foundation last year told VCs and their investors what everyone had known for years but few liked to acknowledge: even before the economic crisis of 2008–2009, venture returns to LPs have been abysmal for about a decade.
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