Year-to-Date Medtech Funding Recap

We took a look at funding activity at medical technology companies so far in 2017 and counted 134 deals as of August 1, 2017, raising a reported $900 million.

The majority of those deals (63%) occurred in five sectors: orthopedics (29 transactions), neurology (19), cardio (15), vascular (12) and general surgery (10). The full distribution of those 134 transactions is depicted below:

While orthopedics attracted the greatest number of investments, it also recorded some of the highest-value deals during 2017 so far. Specifically:

  • Moximed raised $50M in March from Advent LifeScience, NEA and Morgenthaler Ventures, among other investors, to support development of its shock absorbing implants for knee OA;
  • Active Implants, which is developing a meniscus replacement technology, closed the first tranche of an expected $40M financing round led by LS Health Science Partners;
  • Vertiflex raised $40M from Endeavour Vision, H.I.G. BioHealth Partners and NEA to fund U.S. commercial expansion of the company’s Superion Indirect Decompression System for spinal stenosis;
  • Vertos Medical closed a $28M round led by MVM Life Science Partners to expand commercialization of the company’s mild procedure for spinal stenosis; and
  • Simplify Medical, which we previously highlighted here, raised $21M in a round led by LSP to support pivotal clinical trials of its MRI-compatible artificial cervical disc.

Outside of orthopedics, Outset Medical closed a $76.5 million round led by T. Rowe Price Associates, who were joined by Fidelity Management & Research Company, Partner Fund Management LP, Warburg Pincus, Perceptive Advisors and The Vertical Group. The company is using the funds to support commercialization of its novel Tablo Hemodialysis System. And BioStar and Boston Scientific were among the participants in a $45M round that Corindus Vascular Robotics will use to grow its robot-assisted percutaneous coronary intervention technology.

We will update this report at year-end for a full look at 2017 private placements, and we are looking forward to those results: fundraising activity so far has highlighted how innovation continues to drive the sector and affirms the investor interest in our space.