Medtech Investing: A Survivor’s Game

At Elsevier Business Intelligence's IN3 conference in October 2012, a panel of venture capital investors talked about the current difficult financing climate for medtech start-ups, although a ray of hope lights the future.

Venture capital investments have a certain natural life cycle. Nourished by capital, a healthy investment goes through the phases of seed, growth, and fruition. Just like a living organism, if the nourishment is withdrawn, or if a process stalls for too long at any point, the result can be stunting. The ecosystem upon which medtech start-ups rely is in disarray, and this environment is in fact stunting and even killing many start-ups. Do these environmental changes represent a rough patch of weather, or permanent changes? Will current conditions cause a future innovation gap? The answers are yes, yes, and yes, according to a panel of venture capital investors convened at the Investment in Innovation (IN³) Medical Device 360° Summit conference held in San Francisco in October 2012 (www.in3summit.com

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