Venture Capitalist Funding in Medtech Increasing

| Christopher L. Lewis

Recent reports, including one by PitchBook, indicate that both venture capitalist funding for medtech companies and the variety of medtech companies receiving venture capitalist funding has increased since the first quarter of 2023.  While venture capitalist funding for medtech companies is currently predicted to remain below the funding levels seen in 2022 and the record funding levels seen in 2021, reports suggest that venture capitalists are intrigued by new technologies in the medtech space and reports predict that investors may return to the medtech space.  Jeremy Sohn, managing general partner at P74 Ventures, stated “There’s a lot of money out there, billions and billions if not trillions of dollars sitting on the sidelines. There absolutely is money to be taken. You’ve just got to be creative.”

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In one example, several companies have reportedly raised significant amounts of venture capitalist funding in 2022 including funding of $300 million, $225 million, and $223 million.  In another example, in April of 2023, Noah Medical announced that it had raised $150 million in funding to meet rising demand for its Galaxy System.

Additionally, B Capital closed its B Capital Healthcare Fund I at $500 million earlier in 2023.  Robert Mittendorff, Managing Director, General Partner and Head of Healthcare at B Capital, stated “Our target investments range between $15 million and $50 million on first check … We focus on companies with product market fit that are scaling in HealthTech and digital health, and biotech companies near or in clinical development.”  B Capital’s portfolio reportedly includes over 20 companies in various health related fields, including medtech.