Gauging the Risks of Financing Convergence Start-Ups

A handful of recent biotech-device company deals have highlighted the potential of drug-device convergence as natural extensions of the ever-popular repurposing and drug delivery models espoused by investors aiming to reduce the risks associated with drug discovery. Venture capitalists are eager to get in on the game, but drug and device hybrid business models are few and far between. True convergence start-ups remain thin on the ground, a fact VCs say reflects the additive nature of drug risk and device risk.