VC investments in healthcare tech still going strong, led by $540M in cardiovascular care
Venture capital (VC) investments in the medtech sector “held steady” in the second quarter of 2024, totaling $3.3 billion in deal value. This is down slightly from the $3.5 billion in deal value seen in the year’s first quarter, but still higher than investor activity in 2023.
That is all according to a new Pitchbook report focused on VC and private equity (PE) investments in the medtech industry.
“Despite quarterly variability, the current level of VC investment is a positive sign for the medtech VC landscape and lends credence to the view that the market has passed through the trough of investment activity,” according to the report.
Pitchbook noted that the quarter was led by $539.4 million worth of VC investments in cardiovascular technologies. Other diagnostics ($403.2 million) and surgical implants ($287.1 million) were among the other high-ranking subsegments.
Other key takeaways relevant to cardiac and cardiovascular care:
- HeartFlow has raised $828.6 million in venture capital investments so far, No. 3 among all companies evaluated in the report. Pitchbook calculated that going public is almost surely in the company’s future, and its likelihood of being part of an M&A deal is quite low.
- Johnson & Johnson’s acquisition of Shockwave Medical for $13.1 billion is an “indication that strategics can put cash to work for the right opportunity.”
- Medtech PE activity is down slightly, but 2023 was an “especially strong year” in that regard.
- The Edwards Lifesciences acquisition of PE-backed JenaValve for $100.4 million represented one of the quarter’s biggest PE deals.
“Given the unique market dynamics during the height of the COVID-19 pandemic, and considering current conditions, we view VC exit levels in medtech for 2024 so far as a solid win for the sector and a positive sign for deal value and exit momentum going forward,” according to the report.
Click here for more details, including a long sample of the report and instructions on how to download the entire document.
Michael has more than 16 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.