Report: Medical Device Startups Rake in More Than $500M in Q1

Private medical device companies are continuing to rake in the venture capital cash — more than half a billion dollars, according PricewaterhouseCoopers and the National Venture Capital Association.

During the quarter, medtech saw investments of $508.3 million, a big jump over Q1 2015’s $480.3 million total. There were fewer deals this quarter, however, with 59 versus 76 in Q1, according to the “PwC/NVCA Money Tree Report, based on data from Thomson Reuters.”

While the Q1 total is less than the final quarter of last year, which saw $648.5 million, the industry still is on track for its historic average, according to Greg Vlahos, a partner at PricewaterhouseCoopers. Typically, the industry brings in $2 billion to $3 billion annually, he added.

He tells IDDM that certain trends in terms of types of companies that received funding should continue this year, with drug delivery and cardiovascular startups proving popular. Vlahos adds that a wide spectrum of different technology should catch investors’ eyes.

The big winner for Q1 2016 was Langhorne, Pa.-based Aprecia Pharmaceuticals, which raked in almost $79 million. The company has created a platform — known as ZipDose — that uses 3-D printing to produce a porous formulation that disintegrates with a sip of liquid.

Coming in second was Carlsbad, Calif.-based Acutus Medical, with $75 million. The company is focused on developing technology for the minimally invasive diagnosis of complex arrhythmias.

Menlo Park, Calif.-based Spirox raked in a bit less with $45 million. The company is developing solutions for nasal obstruction. — Elizabeth Hollis