Medtech Start-Ups Face Funding Challenges Ahead

Executive Summary

The worldwide recession, uncertainty over US health care reform, and coming changes in the regulatory environment have conspired to limit funding for medical device start-up companies. Investor enthusiasm has been driven down and venture capital markets, which have historically served as the lifeblood of medical device innovation, have been deeply cut, with signs of further contraction as some VCs close their doors. The sector finds itself in, at best, a holding pattern as executives scramble for new sources of operating cash. Medtech reports from the recent Advamed and IN3 conferences.