Report: VCs put higher investment into fewer medtech deals last year
Venture capitalists put more cash into fewer deals backing medical device companies last year, according to the MoneyTree report, meaning that the average deal value rose nearly 28% in 2014.
The report, compiled by PricewaterhouseCoopers and the National Venture Capital Assn. using data from Thomson Reuters, found that VC shops spent $2.66 billion on 319 medtech firms. That’s an increase in total value of 27.0% over 2013, but a -0.6% decline in deal volume.
During the 4th quarter there were 90 deals worth a collective $748.4 million, according to the report, representing a 58.6% increase in value despite a -10.9% volume decline compared with Q4 2013. On a sequential quarter basis, the total deal value rose 20.6%; VC deal volume grew 9.8% compared with the 3rd quarter, according to the report.
The average VC investment in medtech was about $8.3 million in 2014, up 27.8% compared with the $6.5 million average reported for the prior year.
The results dovetail with a report released last week by New York-based research firm CB Insights, which found thatmedtech deals garnered 34% of all VC investment in healthcare last year.
Here’s a look at the total value of the medical device & equipment spend by venture capital firms from 1995 to 2014, according to the MoneyTree report:
And here’s a look at the total number of medical device & equipment deals inked by venture capital firms from 1995 to 2014, according to the MoneyTree report: