Leon Eisen, PhD’s Post

Medtech VCs stay active despite tough conditions   Medtech VC investment rebounded significantly to $3.3 billion in Q1 as investors piled into high-quality companies despite historically low deal volume, our Q1 2024 Medtech Report explains.  The largest deal went to early cancer detection startup Freenome, which raised a $254 million late-stage round led by Roche Venture Fund.  Public medtech valuations have stabilized, and there are pockets of rising valuations within medical devices, consumer health, and life sciences. But exits remain hard to come by.   The report dives into two areas of emerging opportunities—whole-body scans and cardiac arrest prevention and treatment—that investors should be watching. 

Medtech’s VC exits get a clean bill of health Exits in medtech picked up in Q3 after a slow, tough period. And the number of acquisitions has seen a rise, with companies like Endomag and Paragonix getting bought for more than $100 million. The quarter also saw the largest VC deal to date, Element Biosciences' $277 million Series D in July. And despite a dip in Q3, deal flow is still on track to surpass 2023’s figure by 17%. PitchBook’s latest Emerging Tech Research plots what is next for the vertical. Touching on the trends and segments generating excitement and capital, the Q3 Medtech Report also examines companies experimenting with smart implant and wound care technology, both areas seeing a wave of investment

PitchBook's Q3 MedTech report is officially live! PitchBook's analysts provide overviews on emerging opportunities in wound care and smart implants as well as specific company coverage on some of the major players in these spaces! Key Takeaways: • The $3.2 billion of VC funding in Q3 was in line with previous quarters - this quarter also saw a new leader for the largest deal in Medtech this year with Element Biosciences’ $277 million VC round surpassing Freenome’s February $254 million Series F. • Results from the US Election is not expected to have a major impact on the Medtech sector, though on the margin there is likely to be less M&A antitrust scrutiny from the new administration. Two areas of potential change that we're watching: evolving regulation for lab-developed tests (LDTs), and CMS’ coverage decision-making for FDA-designated Breakthrough Devices. • Though VC deal activity has remained in a holding pattern, exits have been picking up and Tempus' successful IPO & solid post-listing share price performance bodes well for the Medtech exit pipeline. In Q3 alone, several startups including Endotronix, Paragonix, Innovalve, and Endomag were all acquired at values exceeding $100 million. • Q3 was an eventful quarter in surgical robotics with new FDA clearances for CMR Surgical (Versius) and Moon Surgical (Maestro), and strong results for publicly traded category leader Intuitive Surgical. And YTD, there has been over $360 million of VC funding in surgical robotics as the sector remains a leading investment category.

Joe Heanue, CEO of Triple Ring Technologies, has a fascinating view of the changing #medtech innovation landscape.  See my interview with Joe on his views - as a scientist, innovator, investor and entrepreneur whose experience spans medtech and biopharma - below. I share Joe's view that we're seeing a fascinating evolution in our medtech innovation ecosystem, including changing roles for investors (CVC, VC and PE) and rapidly blending technology domains among other changes. We saw the seeds of these trends in our 2017 Deloitte / AdvaMed co-sponsored study ("Out of the valley of death: How can entrepreneurs, corporations, and investors reinvigorate early-stage medtech innovation?"). Seeing these trends play out 7 years later is encouraging to me despite the tepid investment climate at the moment. Monitor Deloitte's MedTech team and AdvaMed are studying these latest trends in more detail, so stay tuned for a new report - that should reinforce and expand on Joe's views - in early 2025.  https://lnkd.in/gvfvSsYG Pedro Arboleda Sheryl Jacobson Pete Lyons Vicky Levy Teresa Leste Brad Maruca Puneet Sharma Sujay Viswanath Gabriele G. Vanoli Andrew Flockhart Georg Selle Tetsuyuki(Terry) Tatsuoka Ryan McGuinness Laura DeSimio

J.P. Morgan Q3 2024 Medtech Funding Update The medtech sector is trending upwards in funding, M&A, and IPO activity. 2024 is shaping up to outpace 2023 across all fronts, reflecting higher investor confidence. Some standout highlights: 1️⃣ With $16.1 billion raised so far this year across 554 rounds, medtech funding is on track for a 27% annual growth. Q3 alone added $5.1 billion from 154 rounds, marking a $1 billion increase over Q3 last year. 2️⃣ M&A Activity: A total of 195 deals have generated $47 billion in YTD value, already surpassing 2023’s full-year count. J&J’s $1.7 billion V-Wave acquisition is just one of a number of big events. 3️⃣Licensing & Partnerships: We’ve seen 744 deals so far, valued at $4.7 billion in total. With upfront payments only 8% of the total, companies are leaning towards milestone-driven structures for greater flexibility and focus. 4️⃣ After a quiet few years, IPOs are making a cautious comeback. This year’s two medtech IPOs, including Tempus AI, have raised $500 million on U.S. exchanges, marking a renewed interest in public offerings for healthcare technologies. I know that a lot of MedTech leaders are feeling the fatigue of the market conditions, but as the report shows, times are changing. Keep pushing and keep innovating. #medtech #venturecapital #executivesearch #surgicalrobotics

Innovators — your research and pitch prep should include this concept that Dennis McWilliams of SANTÉ shared: Examining an investor’s portfolio and thesis to understand how they value your market/industry compared to the others they’re investing in. Part of the reason we hold fireside chats like this at LSI is because of the awesome questions like this that get asked from the crowd: “How do you decide where to put your investments in a given portfolio between Medtech, Healthtech, and Biotech?” For Dennis and SANTE: - Market size is never really the issue for Biotech - It’s tough to do a billion dollar exit in Medtech - Medtech doesn’t tend to “slosh around” as much as Biotech - You see more discipline in the Medtech market — valuations don’t get as high - Healthtech requires less capital to drive similar valuations and exits compared to Biotech and Medtech Go listen to the rest of this fireside chat to get insights about how their transition from operator to investor has given them a unique perspective that not all investors share: https://lnkd.in/gmpeb74h

Capitalize on a Unique Opportunity to Pitch for Capital at the Medical Innovation Forum 2024 If you are a forward-thinking company pioneering advancements in medtech, this is your chance to gain the exposure and funding you need to accelerate your growth. Octane’s Medical Innovation Forum 2024 offers a prime platform to present your innovative solutions to a distinguished audience of high net worth angel investors, venture capitalists, strategics, and industry leaders. By applying to pitch, you'll not only showcase your technology but also gain critical insights from seasoned industry experts. This is an unparalleled opportunity to attract significant capital investments, forge strategic partnerships, and elevate your company’s profile in the medtech space. Join us on October 8-9, 2024, at the Irvine Marriott, and position your company at the forefront of medical technology innovation. The forum will also feature the prestigious People’s Choice Award and Judge’s Choice Award, offering further recognition and enhancing your credibility within the industry. Don’t miss this opportunity to connect with the right investors and partners to take your business to the next level. Apply now and become a key player in the future of medtech. Only 1 spot left! Apply Today: https://bit.ly/3zyRAdQ #OMIF2024 #MedTech #MedicalInnovation #Entrepreneurs #InvestmentOpportunities

Recently I was surprised to learn that a long term MedTech CEO, who has carried the business to commercialization has been replaced by the board! As someone who works closely with MedTech CEO's and Founders and sees the drive and determination behind the scenes, I am consistently amazed by the resilience they show. "Imagine this: you're the CEO of a MedTech Startup, pioneering a breakthrough device. Every day is a race against time—not only to bring your product to market but also to secure the so important Funding that fuels each step forward. Alongside, there’s the mountain of going back and forth with FDA or Notified body on regulatory approvals, each requiring precision and patience. For CEOs in MedTech, these pressures are real and relentless. But here’s the hard truth: despite their tireless efforts, some of these CEOs face a thankless journey. For many, the board’s support may seem conditional—waning at the first sign of struggle. I've seen promising leaders replaced after a single setback, despite the incredible value they bring in navigating complex challenges. In MedTech, where innovation meets high stakes, we sometimes overlook the endurance and resilience required to get from concept to market. Every dollar raised, every trial passed, every product update—they’re testaments to these leaders’ dedication. Yet, not every board understands the immense obstacles involved, or the time it can take to reach critical milestones in this industry especially in such challenging funding environment. Let’s remember and support these relentless leaders, especially as they navigate such high-stakes terrain." #medtech #ceo #founders #medicaldevice #executivesearch

Unlock Investment Opportunities at the Medical Innovation Forum 2024 Whether you're an investor seeking the next breakthrough in medtech or a startup looking to secure the capital to fuel your growth, the Medical Innovation Forum 2024 is the event you can't miss. Octane’s premier forum offers a unique platform for innovative companies to pitch their cutting-edge solutions directly to a curated audience of high-net-worth angel investors, venture capitalists, strategics, and industry leaders. This is your chance to connect with key players, attract significant investments, and forge strategic partnerships that will elevate your company’s standing in the medtech industry. Join us on October 8-9, 2024, at the Irvine Marriott, where you'll not only witness groundbreaking pitches but also participate in awarding the prestigious People’s Choice and Judge’s Choice Awards. This forum is designed to bring together the brightest minds and the most promising opportunities in medtech innovation. Don’t miss this chance to be part of the future of medical technology. Apply Today: https://bit.ly/4fLLFCi #OMIF2024 #MedTech #MedicalInnovation #Entrepreneurs #InvestmentOpportunities

Innovation in MedTech and VC Funding 📉 The "wait and see" stance employed by VC's has definitely impacted development-stage and newly-commercialized MedTech's. While this has introduced challenges, it's also brought out the resilience and creativity in many companies. Without the abundance of VC funding, MedTech firms are focusing on optimizing their resources and prioritizing high-impact projects. This means more emphasis on practical innovations that can deliver immediate benefits. It's inspiring to see how these limitations drive efficiency and strategic planning. At Rincon Search Group, we've noticed a shift in the type of talent our clients are seeking. There's a growing demand for professionals who can do more with less, pivot quickly, and bring novel ideas to existing budget constraints. This is where our deep industry knowledge and tailored approach benefit firms navigating this complex landscape. How has the funding environment affected your approach to innovation? Share your thoughts below. And if you're looking for top-tier talent in MedTech, visit rinconsearchgroup.com. #MedTech #Innovation #VCFunding