This article first appeared in the March 2009 issue of Start-Up. The current economic crisis is hard on everyone, including investors and start-ups. But the news isn't all bad for medical device VCs. Those with capital will find the prices to be right in today's depressed economy. On the flip side, those venture firms without new funds or sufficient reserve capital will get penalized by declining valuations and punitive terms offered up by some new investors in their companies. Medical device companies, meanwhile, face tougher scrutiny from investors. During all this, both VCs and start-ups must answer new questions being posed by regulatory bodies, public investors, corporate acquirers, and potential customers.
by Tom Salemi
Perhaps Charles Dickens knew a thing or two about venture
capital. His oft-quoted opening line to ATale of Two
Cities aptly describes the current landscape for venture
capitalists investing in medical devices. For those VCs with
capital to invest, these will be the best of times as dire economic
news drags down valuations
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