Device VCs Keep Eye on Capital Commitments

Medical device investors have a newfound appreciation for keeping a lid on their capital commitments.

The recent acquisitions of intraocular lens maker Visiogen Inc. and heart valve repair company Evalve Inc. clearly demonstrated that well-financed device companies can make solid returns for investors even in this difficult market. However, no one is giddy enough for a moment to think these companies are anything but fortunate outliers in a difficult market for mergers and acquisition.

Device venture capitalists are demonstrating renewed concern over how much capital their companies raise. Strategic buyers generally have kept a...

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