Medical device companies pulled in more than $255 million from investors in 29 deals during January, according to data provided to MassDevice.com by CB Insights Inc.
The deals ranged widely in size, from a $25,000 seed round investment for Elyira, Ohio-based Guided Interventions and its passive coronary artery blockage sensing technology to a $43 million Series D round for EndoChoice and its endoscopes.
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Deal-level breakdown
VCs flocked to early-round deals during January, pumping 54% of the month’s medtech funding into seed, Series A and Series B rounds of up to $19 million. About 28% of the deal money went into Series D rounds and 16% to Series E rounds and beyond.
Diagnostics, ophthalmology, orthopedics and woman’s health makers got the most attention, each accounting for 10% of all deals. Companies in the neuro-stimulation, patient monitoring, oncology, stent and urology each accounted for 7% of the deals. Sporadic activity was also seen in the biomaterials, electrosurgery, endoscopy, TAVI and wound healing sectors.
"We’ve seen medical devices as the favored destination within healthcare for angel and VC funding for some time, and January’s activity highlighted that interest in medical devices remains strong," Anand Sanwal, CEO of CB Insights, told MassDevice.com. "The diversity of companies in terms of areas of focus and in terms of maturity, seed to later-stage, is also a positive as it highlights that investors of all stripes remain bullish on the medical device space"
Top 3 deals of the month
1. Alpharetta, Ga.-based EndoChoice pulled down a $43 million funding round, led by Sequoia Capital, for its gastrointestinal endoscopy platform device. The company also announced the acquisition of German endoscope maker RMS Endoskopie-Technik and a merger with Peer Medical.
2. Laguna Hills, Calif.-based Glaukos raised $30 million in support of U.S. commercial launch of the iStent device for cataract surgeries. The company won pre-market approval for the device in June 2012.
3. San Francisco, Calif.-based Crescendo Bioscience netted $28 million for developing and commercializing its quantitative blood tests for rheumatoid arthritis and other auto-immune diseases.
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The deal data was compiled by CB Insights using the company’s proprietary medical device venture capital deal feed, a weekly roundup of financing transactions to high growth medical device companies receiving angel or venture capital funding. MassDevice.com readers can receive a 10% on an annual subscription to the feed using the code "massdevice."
