Medtech Investing In Europe: Nowhere To Go But Up

It’s no secret that these are difficult times for venture investing in medical devices. Coming in the wake of the boom years of 2004–2007, when venture dollars flowed into medical devices in record amounts, the bust and even post-bust years have provided little relief for medtech investors. While the absolute number of venture dollars going into medtech hasn’t declined all that much, a palpable anxiety overhangs the sector. Regulatory pathways are no longer either simple or quick and reasonable returns to LPs remain difficult to come by. A much-discussed report from the Kaufman Foundation last year told VCs and their investors what everyone had known for years but few liked to acknowledge: even before the economic crisis of 2008–2009, venture returns to LPs have been abysmal for about a decade.

In striking contrast to just a couple of years ago, when many investors leapt into medical devices as a sure, safe, predictable haven compared with the vagaries of biotech investing,...