A new report released today by Deloitte looks at ways to help more medtech startups progress their innovations to market.
The amount of venture capital being directed towards early stage medtech companies has declines over the last 25 years, which could ultimately mean potentially life-saving products never making it to the patients who need them.
“The proportion of VC investment in medtech companies has declined from 13 percent in 1992 to 4 percent in 2016, and this decline has begun to threaten innovation,” said Glenn Snyder, principal, Deloitte Consulting LLP, and medical technology practice leader. “Teaming with large medtech companies, alternative funding sources, and tax policy changes could help solve the financing issue currently facing early-stage companies.”
The measures are outlined in the report: Out of the Valley of Death – How Can Entrepreneurs, Corporations, and Investors Reinvigorate Early-Stage Medtech Innovation? – which was produced by the Deloitte Center for Health Solutions and AdvaMed.
“This report lays out in stark terms the challenges facing not only medtech startups but the entire ecosystem that supports innovation in our industry. But more importantly, it also provides clear and concrete potential solutions to these challenges − for entrepreneurs, larger medtech companies and investors − so that we can help reverse these troublesome trends and ensure a rich pipeline of future innovation for the benefit of patients and our economy,” added Ashley Wittorf, executive director, AdvaMed Accel, and global head, investor relations.