Late-Stage Dealmaking Takes Off

It is axiomatic in medical devices that venture capitalists (VCs) only like to do early-stage deals. Because the technology risks are so much lower and product prototyping and vetting is so much quicker than, say biotechnology, the argument goes, early-stage investors get more equity for their money—and therefore a higher return on their capital—by investing early without necessarily incurring a lot of risk.

But though the inherent risk of medical devices is low, it is not entirely absent from device dealmaking. Anecdotally, some VCs insist that only 25%-30% of device investments find a...