Mergers and acquisitions in the medtech industry are accelerating with venture capital firms making investments of $1.8 billion in the first quarter of 2023, according to a May 23 report from capital market company PitchBook.
Five things to know about medtech deals in the first quarter:
- In quarter one, $1.8 billion was tracked in medtech deal activity, with $7.4 billion in investments over the past year. This is a decline of 31 percent compared to the year prior.
- According to the report, there were 439 venture capital deals in the medtech industry with a combined deal value of $8.7 billion in 2022. This is down from 561 deals and deal value of $9.7 billion in 2021.
- There have been only 16 buyouts in medtech since the start of 2023.
- Inflation, higher interest rates and a frozen IPO market are some contributing factors to a decline in venture capital and private equity activity in medtech.
- Oncology diagnostics, AI-powered medical imaging and remote patient monitoring are the three areas in which medtech funding is increasing.