The VC industry turned in bleak numbers for biotech deal-making in the first quarter of 2013, with one key measure of early-stage activity in the life science sector falling to its lowest level in almost 18 years.
Med Tech venture investing continued its painful decline in the 2013 first quarter, dropping a whopping 20% in dollars and 10% in deal numbers versus last the three months of 2012, according to the latest MoneyTree survey.
In 2012, the medical device sector saw a 13% dollar-value drop from the year before and a 15% decline in the number of deals, according to the latest MoneyTree report. Read more >>
It's no secret--venture funding for medical device industries has become highly uneven at best. But the U.K.'s biggest charity outfit is stepping into the game, launching a £200 million ($325 million) fund that will help fill at least a few of the gaps.
The medical device industry tax and the Independent Payment Advisory Board--both major elements of the Affordable Care Act--stand a good shot at repeal in the coming months, according to a National Venture Capital Association analysis.
For the 2012 third quarter, the top venture capital funding rounds for medical device and equipment companies are anything but big. Noticeably, they're relatively small, peaking at just over $35 million and running far lower than that. Most are supplemental rounds.
Harvard Business School lecturer Shikhar Ghosh says that venture groups prefer a quiet funeral for their failures.
New Enterprise Associates has replenished its checking account. NEA, one of the busiest venture players in the life sciences industry, has put together a $2.6 billion fund--its 14th. And NEA Managing General Partner Peter Barris says the fund reflects the growing concentration of capital in the hands of a few big players capable of playing on a global basis.
These are dubious times for medical device companies seeking venture investment.
More grim news on the venture front arrived today, with the latest figures from the National Venture Capital Association showing that venture cash flow into U.S. biotech companies dropped for the second consecutive quarter.