Venture capitalists have dropped $16.3 billion on medtech in the 3rd quarter this year, bringing the total invested up to $47.2 billion so far this year, higher than the past 17 year totals, according to a MoneyTree Report.
The money this quarter went into 1,070 deals, according to the report from PricewaterhouseCooper and the National Venture Capital Association, down 5% from Q2 2015. The total deal count was down 11%.
This quarter marks the 7th consecutive quarter in which more than $10 billion has been invested in medtech, according to the report.
“With 7 consecutive quarters of more than $10 billion deployed to the startup ecosystem and more than half of all investment deals now going to seed or early stage companies, it’s a great time to be an entrepreneur in America. If there’s anything we learned this quarter, it’s that despite the recent turbulence in the financial markets, venture capitalists remain undeterred and are confident investing in truly innovative companies across all sectors of our economy. At $16.3 billion invested for the quarter and over $47 billion invested for the year, total venture capital dollars deployed to the startup ecosystem in 2015 is on target to be the second highest since the inception of the MoneyTree Report in 1995,” NVCA CEO Bobby Franklin said in a press release.
Software companies received the most funding of all the industries in medtech, with $5.8 billion and 512 deals this quarter. The top 10 deals from the quarter accounted for 19% of all funds invested.
Investments in seed-stage companies rose 23%, bringing in $214 million in 55 deals, while 1st-time financing dollars increased 7%, to $2.5 billion through 372 deals this quarter.
“Despite a modest downtick in dollars and deals in the third quarter, we are still in a midst of a robust market and this quarter marks the second highest quarter in aggregate investment dollars since the fourth quarter of 2000. Though software remains dominant, the top ten deals included rounds of funding across seven industries, illustrating continued investment appetite in new areas of innovation across industries,” PricewaterhouseCooper US venture capital market leader Tom Ciccolella said in prepared remarks.
