In recent years, all the talk in the medical device community has been about the VC funding reservoir for biotechs and medtechs going dry. But according to VentureDeal.com, H2 2011 saw some major deals for medical device companies, featuring investments from many of the biggest corporate venture arms and private VC firms in the US.
The Top 10 (with FierceMedicalDevices descriptions):
- Valeritas (NJ) – $150M – Series C – insulin delivery device for diabetes
- Intuity Medical (CA) – $76M – Series D – glucose monitoring system for diabetes
- HeartFlow (CA) – $65M – Series C – web-based cardiovascular modeling
- AcuFocus (CA) – $65M – Series F – implant for presbyopia
- Nevro (CA) – $58M – Series B – spinal cord stimulation for chronic back pain
- Sensors for Medicine and Science (MD) – $54M – Series D – glucose monitoring system for diabetes
- NeuroPace (CA) – $49M – Series C – implantable devices for neurological disorders
- CardioKinetix (CA) – $44M – Series E – device for LV heart failure
- Restoration Robotics (CA) – $41M – Series C – device for hair restoration
- GI Dynamics (MA) – $37M – Series B – implantable device for diabetes/obesity
The top deals reflect a steadily growing interest in diabetes therapeutics, diagnostics and monitoring tools, with 4 companies (including the top 2) raking in big cash for diabetes products. No surprise there—with over 26 million Americans suffer with diabetes (plus an estimated 350 million worldwide), it represents one of the biggest medical markets out there.
Although the return of sizable investing activity is encouraging for biotech and medtech groups, continued geographic focus and emphasis on later-stage companies (and re-investments versus new ones) means the news isn’t all great. The list is heavy with later-stage companies, and 7 of the top 10 are located in California—within shouting distance of many of the nation’s biggest investors.