Venture Capital Investment in Medical Devices Takes a Nosedive in Third Quarter Says PricewaterhouseCoopers LLP

Published: Dec 03, 2012

Venture capital investment in medical devices pretty much fell off the cliff in the third quarter. The PricewaterhouseCoopers MoneyTree Report found that medical device companies received a combined $434 million from65 deals in the third quarter, which marks a 37 percent drop in dollar amount and a 27 percent decline in the number of deals from the second quarter. It’s hard to believe that just one quarter ago, the medical device industry ranked second in terms of venture investment into all industries; in the third quarter, it fell to sixth place. In fact, the third-quarter investment marks the lowest amount that the device industry pulled in since 2004. While the medical device industry sank to the bottom, overall, the life sciences sector showed signs of improvement, driven by a big influx in capital in the biotech industry, which saw a 64 percent increase from the same quarter a year ago. The life sciences group saw a total investment of $1.7 billion in the third quarter through 181 deals, which represented a 16 percent increase in the amount of dollars invested from the previous quarter, although the number of deals declined 2 percent from the second quarter of 2012. However, investment in life sciences companies in the third quarter continues a downward trajectory given that the dollar amount invested and the number of deals fell 12 percent and 8 percent respectively from the third quarter of 2011.

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