The Race To Acquire Medical Device Startups

Medical device startups across the globe raised nearly $4B in equity financing in 2016, placing last year just behind the 5-year high of $4.1B in 2014. NEA stands out as the most active investor in device startups with Versant Ventures, OrbiMed Advisors, and High-Tech Gruenderfonds not far behind.

As medical device companies gain traction, large corporates such as Medtronic, Boston Scientific, and Teleflex are competing in the race to acquire private medical device startups targeting neurosurgery, orthopedics, and cardiology, among other areas.

Below we used CB Insights data to track first-exit M&A activity of top medical device acquirers that have made 5 or more acquisitions since 2012.

Graphic-5.3.17

Key Takeaways:

  • Since 2012, median disclosed funding raised by medical device companies prior to their first acquisition was $38M, while median disclosed valuation at time of acquisition was $140M, 3.7x the total amount raised.
  • Medtronic is by far the most active acquirer of medical device startups since 2012 with 15 acquisitions. Much of that activity has been fairly recent. Sixty percent of acquisitions since 2012 occurred in 2015. Median disclosed funding of a medical device startup prior to acquisition by Medtronic was $34M. Median valuation at time of acquisition was $150M.

By CB Insights

Graphic Credit: CB Insights

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About Peter Coffaro 680 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the orthopedic industry. Recognized by MedReps.com as one of the top medical sales influencers in the industry; he has 10 years of combined sales management experience and has held positions as a Director, General Manager and Distributor. Peter has worked for some of the top orthopedic companies in the world - Zimmer, DePuy and Stryker. He is also the founder of OrthoFeed: a popular blog that covers orthopedic news and emerging medical technologies. Peter is a three-time Hall of Fame award winner at Johnson and Johnson and has an extensive background in organizational development, business development, sales management, digital marketing and professional education. Peter holds a B.S. degree in Biology from Northern Illinois University.

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