Device Investors Buoyed By Secondhand Optimism

Article preview from Start-Up - September, 2013

Venture capitalists still might find medical devices to be among the more difficult sectors to place their money, but the overall mood of device investors is improving. Device VCs are encouraged by increasing opportunities on Wall Street along with interest from corporate investors, but limited partners and the FDA remain primary concerns.

Device Investors Buoyed By Secondhand Optimism

Article preview from Start-Up - September, 2013

In our third annual survey of life science VCs, medical device investors sounded their most hopeful note yet. While the sector clearly is showing signs of strain – low LP interest and higher hurdles from the FDA – the mood of VCs may signal a rebound is coming.

 Venture capitalists still might find medical devices to be among the more difficult sectors to place their money, but the overall mood of device investors is improving.

In START-UP’s 2013 Life Science Venture Capital Survey, we queried life science VCs of all specialties – device, biopharma, and generalists – about their overall feelings for the VC industry – positive, negative, or neutral. The overall mood is good, with 48% of the 100-plus VCs polled reporting a “positive” outlook. The elation of biopharma VCs, enjoying a rebound of the IPO, was simply off the charts with 77% reporting good feelings.

Those positive vibes are washing over to medical devices. Thirty-one percent of those VCs who told us they invest only in medical devices said they felt “positive” about the industry.

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