Medical device venture deals pull in more money per deal

The number of medical device venture financings is about on pace with where it was last year, but startups are managing to pull in a bit more for each round. That's particularly true for first time rounds going to device companies. This is according to the latest MoneyTree Report data through the third quarter from PricewaterhouseCoopers and the National Venture Capital Association.

VCs invested about $1.9 billion in medical device companies during the first three quarters of the year in 222 deals. That amount is an increase of 15% from the roughly $1.6 billion raised during the same period in 2013 in 219 deals.

On average, the amount per financing has increased to $8.4 million during the first three quarters, up from $7.4 million over the same 2013 period.

If medical device financing continues on par with its current quarterly pace through year-end, it would close out at $2.5 billion, which would be a notch up from the $2.1 billion last year. Overall, the total venture capital raised across all sectors year-to-date was more than $33 billion, which has already surpassed the $30 billion raised in 2013.

Investors are also bumping up the size of first-time medical device company financings. A first venture round in the sector has climbed to an average of $5.9 million, up from only $3.5 million last year. The tally of first medical device rounds is 42 year-to-date, right around the 39 at the same time in 2013.

The amount going to early medical device financing rounds is $252 million, up from $204 million for the whole of last year. All this indicates more investor confidence in these young medical device companies. If early device financings continue at a similar pace through year-end, the total would be about $336 million.

The last year that this much money went to first-rounds in medical device companies was in 2009.

- here is the release

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