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...