Venture capital investment in the medical device industry fell nine percent in 2010, ending the year as the fourth largest investment sector with $2.3 billion going into 324 deals. That's slightly more deals than in 2009, when medical devices ranked third among all industries. The figures were released today in a MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.
Medical devices had a particularly weak fourth quarter; the sector saw a drop of 31 percent in dollars and 15 percent in deals from Q3 2010 with $400 million going into 71 deals. The industry's biggest fundraiser in 2010 was DFINE, which garnered a $62 million round. The devicemaker is developing technologies that help patients with back pain due to spine fractures and other sources of bone pain. Trivascular ($60 million), Home Dialysis Plus ($50 million), Intrapace ($49.7 million) and PneumRx ($49.7 million) rounded out the top five fundraisers.
Overall, venture capitalists invested $21.8 billion in 3,277 deals in 2010, an increase of 19 percent in dollars and a 12 percent rise in deals over 2009.
- read the NVCA release