Medtech predictions for 2014
2014 will be a better year for venture capital than 2013, but that won't necessarily mean it will be easier for entrepreneurs to raise money. And the life science IPO boom likely won't be sustained.
That's the sentiment captured by the National Venture Capital Association and Dow Jones' DJX VentureSource's annual Venture View survey, which garnered responses from some 300 venture capital professionals and venture-backed startup CEOs.
Nearly 60 percent of respondents predicted higher levels of VC investment next year, and 70 percent see more acquisitions on the horizon.
Anecdotally, a few life science CEOs who responded to the survey expect to see "continued international expansion due to unfavorable FDA climate" and enhanced value-based M&A taking the place of revenue-driven M&A.
A few highlights from the survey:
- Sixty-four percent of VCs expect fewer life science IPOs.
- The most VCs predict that medical devices would be the most underfunded sector, with 46 percent saying fewer dollars would go into medical devices.
- Thirty-one percent foresee a dip in VC investment in biopharmaceuticals.
- Most VCs and CEOs don't plan to take advantage of new rules for general solicitation and crowdfunding.
- Forty-five percent of VCs say the hardest round to raise will be a Series A.
- Some 57 percent of VCs also predict an increase in healthcare IT investments. "Initial proof for digital health for VCs through meaningful portfolio company acquisitions," wrote Rafael Torres of GE Ventures.
[Photo by - Daniel Moyel]