Report: Medical device deal volume, spend down during Q3

Investors spent less money on fewer deals in the medical device sector during the third quarter and so far this year, bucking the overall growth trend for venture capital-backed firms, according to a new report.

Venture capital investment fell -19.7% to $772.7 million during the three months ended Sept. 30, with deal volume down -20.3% to 51 deals during the quarter, according to the MoneyTree report from PricewaterhouseCoopers and CB Insight.

Year-to-date, VCs put $2.32 billion into 172 deals, down -11.4% and -16.1%, respectively, compared with the first three quarters of 2017, according to the report.

Medtech’s performance went against the grain for the overall U.S. VC-backed sector, which saw total dollars invested rise 17% to $27.5 billion.

Globally the total VC spend rose 2% to $53.1 billion across 3,408 deals, but early-stage investment declined in all regions, according to the report.

“This quarter approached quarterly funding records, with $27.5B invested in VC-backed startups and 55 mega-rounds,” PwC’s Tom Ciccolella said in prepared remarks. “On the other hand, VC-backed deal volume is down to a level unseen since Q4 of 2012. As early-stage startups wonder if there are adequate funds available, the overall deal volume (1,229) still reflects a healthy startup ecosystem.”

“The unicorn birth rate picked up in Q3’18 with 16 US startups and 13 Asian companies seeing valuations rise above $1 billion dollars. Mega-rounds (those over $100M) also reached record levels in the US as money rushed into mid- and later-stage companies,” added CB Insights co-founder & CEO Anand Sanwal. “The casualty of this rush has been the seed stage, which saw a global decline. The migration out of seed won’t be felt now, but it will have impacts on the venture ecosystem in the coming years.”

The post Report: Medical device deal volume, spend down during Q3 appeared first on MassDevice.

from MassDevice https://ift.tt/2OPzH0U