EP Vantage 2017 Medtech
Half-Year Review

Unprecedented amounts of money flow in medtech but not towards smaller innovators

At the half-year point it has become clear that 2017 is the year money returned to the medical device sector.

Two venture investments of nearly $1bn have pushed the total raised by private medtech companies to unprecedented heights; the first half’s total of $3.8bn makes the previous six-month record – $2.3bn in the second half of 2011 – pale in comparison.

Key Highlights

  • Total venture funding raised in the first quarter was over $2.5bn, more than twice the quarterly average over the past seven years, but the second quarter saw the fewest deals since the second quarter of 2006

  • The first half of this year saw the three biggest ever VC rounds in medtech, Grail, Verily and Guardant Health raising more than $2bn between them

  • The mega-merger is back in vogue with nine out of the top 10 deals in the first half worth $1bn or more, versus only five in the first half of 2016

  • 2017 could see nearly $98bn spent on medtech M&A – double last year’s total – but with only around 150 transactions versus 234 in 2016