Venture Capital Fundraising Trends in the Medical Device Industry

Venture capitalists invested $5.9 billion in 863 deals in the first quarter of 2013[i] and $6.7 billion in 913 deals in the second quarter, according to the MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters.[ii]  The medical device industry received investments of $543 million in 71 deals in the second quarter of 2013, which represented a 1% decline in both dollars and deals from the first quarter’s $550 million and 72 deals, according to PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters.[iii]

Venture capital investment in medical device companies during the first half of 2013 is down from the amount invested in the first half of 2012.  In 2012, venture capitalists invested $711 million and $678 million in the first and second quarters, respectively, as compared to $550 million and $543 million in the first and second quarters of 2013, respectively.[iv]  Moreover, in the first quarter of 2013, investments in the life sciences sector, including biotechnology and medical devices, fell by 28 percent in dollars and 23 percent in deals to the fewest number of deals since the first quarter of 2009.[v]  The trend somewhat reversed in the second quarter of 2013 with 25 percent in dollars and 2 percent in deal increase, but mainly driven by the biotechnology investments.[vi]  Below are plots showing a decrease in growth of medical device dollar investments and deals since 2007 based on quarterly updated PWC MoneyTree National Aggregate Data.[vii]