Medtech venture investment recovery continues, but startup M&A remains limited: Pitchbook
Acquisitions of late-stage VC startups have been rare, a fact Pitchbook attributed to “ongoing price gaps between buyers and sellers.
Dive Brief:
Venture capital investment in medtech companies rose roughly 3% year over year to $3.3 billion in the second quarter, according to a new report from market data resarch firm Pitchbook.
At the current rate, VC funds will invest close to 20% more in medtech firms this year than in 2023, Pitchbook said, offering support for the view that the industry has “passed through the trough” of funding.
The value of exits for venture-backed medtech companies increased to $6.6 billion in the first half of 2024, although the data are skewed by Tempus’ initial public offering. Acquisitions of late-stage VC startups have been rare, a fact Pitchbook attributed to “ongoing price gaps between buyers and sellers.”
Dive Insight:
The number and value of VC investments in medtech companies peaked in 2021, per Pitchbook’s data. Compared to the peak, the number of investments in 2023 was down 27% and the amount invested had fallen by 45%.Last year appears to be the low ...
