Medical device venture capital funding falls to $5.8B in 2016

Investment and startup activity in the medical technology sector is in decline, according to a joint report from Deloitte and AdvaMed.

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The medtech sector experienced 706 funding deals encompassing $5.8 billion in venture capital investments in 2016, down from 676 deals of $6.42 billion in 2015. By contrast, 2014 boasted 800 funding deals comprising $6.8 billion.

To address dwindling investment in medical devices, companies should engage in strategic partnerships and co-development initiatives, according to the report. In 2016, the plurality of co-development activity in the medtech sector — 45 percent — related to in-vitro diagnostics.

Other co-development partners hailed from health IT (19 percent), diabetes care device (5 percent) and cardiovascular device (3 percent) sectors, among others.

To access the full report, click here.

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