Since the integration of technology and medicine, MedTech has had no shortage of interested investors. Medtech is a broad industry comprised of many different types of solutions, including medical device startups, biopharma, and healthcare IT. Medtech investors come from a variety of sources. What they have in common is a vision that medicine and technology can do great things together.
These MedTech venture partners have been able to raise substantial amounts of money. Medical device companies alone raised $2.9 billion in 2018, besting the previous year’s $2.8 billion. The U.S. medical device market, the largest in the world, is anticipated to reach $173 billion in 2019. This hunger for opportunity means there will be more investments to those with innovative ideas. But where does MedTech investment money come from? Typically, from MedTech venture partners, which may dabble in several industries or focus solely on healthcare.
Here are the top MedTech investors that you should have your eye on.
Innova Memphis favors upstarts with robust intellectual property and advantages in the biosciences and tech realms. They offer funding for pre-seed, seed, and early-stage. Their team has extensive experience in helping new companies thrive. Examples of their investments include Advanced Catheter Therapies (ACT), a medical device company targeting vascular diseases, and Arkis Biosciences, a developer of MedTech for the treatment of pain management.
New Enterprise Associates (NEA)
NEA is one of the world’s largest venture capital firms. They focus on technology and healthcare in their portfolio. In the healthcare realm, they are active in the medical devices sector and have provided funding to companies like CVRx, Vytronus, and Nevro. They have invested in over 66 MedTech companies in various stages of development.
Johnson & Johnson Innovation (JJDC)
The strategic MedTech venture partner of Johnson & Johnson, JJDC has developed a platform for pursuing opportunities to solve urgent healthcare challenges. Their investments include medical devices, pharma, and global public health. Their medical device focus includes surgical oncology, obesity, osteoarthritis, and cardiovascular. One interesting investment is in the Dreem 2 headband that monitors sleep, measuring brain activity, delivering detailed reports to users. Another project is Cala Health, a bioelectronic medicine company that produces wearable neuromodulation therapies to those with chronic diseases.
The team behind Versant Ventures has over 60 years of pharma experience and 45 years of biotech experience. The healthcare investment firm focuses on biotechnology companies that innovating new therapies. Some of their top picks for funding include the thrombectomy device company Inari Medical.
SOSV invests in 150 companies every year through an accelerator program. They provide startups with seed capital and offer consulting assistance from engineers, designers, and scientists. Their portfolio includes a diverse group of MedTech companies. Of note is DaekiTech, the world’s first saliva-based device to diagnose diabetes, Qidni Labs, which is developing an implantable artificial kidney, and OaCP, a cancer diagnostics platform.
SV Health Investors
Transforming healthcare and driving discovery are values of SV Health Investors. They specialize in funding for biotechnology, medical devices, and healthcare services and digital health. They list over $2.9 billion in capital commitments to entrepreneurs in these fields. Beyond just money, the firm practices support and collaboration to bring ideation to life for the greater good. Portfolio highlights include Autifony Therapeutics, which develops treatments for those with hearing impairment, and CardioFocus, a medical device company seeking to advance cardiac ablation treatment with HeartLight®.
U.S. Venture Partners (USVP)
With an investment of nearly $4 billion, USVP is a Silicon Valley venture capital firm that invests in early-stage healthcare startups, among others. They’ve helped over 480 companies in their 30+ years of investing. Notable MedTech investments include Intuity Medical, maker of POGO®, which combines test strips, lancets, and lancing devices in one compact meter and cartridge system, and Neuros Medical, a neuromodulation company that has a patented device, the Electrical Nerve Block, a means to treat chronic pain.
BioStar Capital describes itself as a value-add investment firm. They concentrate their efforts on helping medical device technologies in cardiovascular and orthopedic medicine. Their team includes investment and medical thought leaders. In addition to capital, the firm delivers operational strategies and clinical expertise. It has numerous active portfolio companies--Ablative Solutions, designers of transcatheter chemo-denervation treatment for the renal nerves, Autonomix Medical, developers of electrophysiologic technology, and Trice Medical, a diagnostics company that uses micro-invasive technology.
Deerfield strives to advance healthcare with investments, information, and philanthropy. On the investment side, they manage over $8 billion and seek to help healthcare companies develop and bring to market new devices, treatments, and products. Their investments cover a range of healthcare innovations such as AveXis, a biotech company working on gene therapy for Spinal Muscular Atrophy, and Cytokinetics, a clinical-stage biopharma business developing small molecule therapeutics.
MedTech investors will continue to dominate the healthcare innovation space. This space is evolving rapidly as medicine and technology continue to converge. Check out these investment firms and the companies they’ve placed their bets on, so you always have a pulse on what’s happening in the field.
About the Author
Carevoyance contributor Beth Osborne is a professional writer and content marketer with multiple years of experience in healthcare IT marketing. Learn more about her by visiting her website.