Device Financings: Bad, Could be Worse
The public market for device offerings isn't completely dead but the private market is looking pretty good in comparison. In fact, public companies in the last 15 months have raised more money, when private financings are taken into consideration, then the same group did in the previous 15 month period.
You may also be interested in...
Some VCs insist that only 25%-30% of device investments find a successful exit -- significantly better than the 10% of biotech deals, but still far from a sure thing. As a result, over the past year or so, there has been a marked increase in interest in late-stage dealmaking -- investments made at Series C or later or via alternative vehicles such as PIPE deals and SPACs.
With device company investors worried about exit strategies, companies and their financiers are looking for creative ways to get deals done. Limited exit opportunities are making financiers anxious, driving them to put more money into fewer start-ups, which target devices aimed at larger markets. Some entrepreneurs are forming incubators to focus on niche products in which they develop new technologies, then sell them without building companies around them.
Effective medical device regulation supports both safety and innovation needs. This article assesses how well the US FDA and the Australian TGA achieve this balance.