START-UP’s 2012 Medical Device Census

In what is arguably Kevin Costner’s finest film role, the actor plays journeyman minor league catcher Crash Davis in Bull Durham, who laments the razor’s edge difference between his long, but undistinguished, career and those players who “make it to the show.” A drunken and forlorn Davis notes that one base hit a week over the span of a season – a dying quail, a ground ball with eyes – is the difference between playing in the Carolina League and Yankee Stadium. The scene represents why baseball is an apt metaphor for life – and for the venture capital business. In the case of the latter, the only difference between a top-tier firm and a mid-tier firm is the one or two base hits (read: exits) a year that can raise an IRR high enough to keep a venture firm in the majors (and, these days, in business).

But Davis’ career had meaning even without the extra base hit each week. And while his success could be measured by baseball statistics – he broke the all-time minor league home run record – assessing the performance of venture capitalists without the benefit of IPOs and acquisitions is difficult. And, some might point out, it’s pointless because VCs are rightfully and exclusively judged on their ability to make money for their investors. This is true even if the dollars they invest go to medical device companies that treat injury, cure disease and save lives