In 2013, about $2.5 billion was invested in medical device development — which included 261 venture capital deals — the lowest rate since 2005, when $2.4 billion was invested over 251 deals, according to a Wall Street Journal report.
Mike Carusi, an investor with Palo Alto, Calif.-based Advanced Technology Ventures, said in the report that there are fewer investors in the market, companies are tending to shift into other healthcare industries, such as health IT, and some investors simply don't have the adequate capital to invest.
However, some companies see the decline in investing as a weeding-out process of weak deals that can eventually lead to better valuations of stronger deals.
Mir Imran, device entrepreneur and investor, said in the report he thinks 2014 could be the year medical device investing turns around because disappointing returns on investments in other markets may push investors to invest in the U.S. again.
More Articles on the Medical Device Market:
10 Biggest Technological Advancements for Healthcare in the Last Decade
Portable Medical Device Market to Reach $20B by 2018
5 Quick Facts About the Current Health IT Market