The annual Consumer Electronic Show is a great place to assess upcoming trends, including news on start-ups and investor activity. At CES 2017 in Las Vegas, investors seem bullish about health technology, including innovations in sensor technology and home appliances that could be applied in the healthcare space, such as blood pressure, glucose meters, ECG, pulse oximeters and heart rate variability monitors. Sleep and fertility devices are also making waves as angel investors are looking for medical companies to invest in.
Investor Interest in the Healthcare Space
Investor interest in the healthcare space has been sustained for several years, and with advancements in technology, witnessed an upswing. Angel investors have truly set their sights on medical companies to invest in.
In particular, Investments in Biotech Startups have Accelerated.
One reason is the boom in biotech stocks and an increase in biotechnology mergers and acquisitions. From Illumina that brought DNA sequencing in biology to the mainstream, and is now a $23 billion company to companies offering cancer-killing therapies and cosmetic-oriented ones such as treatments that melt away double chin fat, the biotech market has found favor with angel investors.
Angel Investors and Venture Capitalists Invest in Medical Devices
According to biotech news publication FierceBiotech, venture capitalists invested a total of $2.7 billion in medical devices and diagnostics in 2015, the highest since 2008. Diagnostic start-ups and medical device financing rose to $446 million, with some of the biggest first rounds seen in areas of medical imaging and ophthalmic surgical devices. Private equity investors have become increasingly knowledgeable and comfortable with investments that involve direct patient care and reimbursement. Angel investors are looking at medical companies to invest in are turning to early-stage deals as well as buy-and-build strategies.
Reasons behind the interest are many and varied, driven by smartphones and new ways of participating in the healthcare system to the introduction of precision-driven, cutting-edge medical devices in hospitals and doctor’s clinics. A lot of the transformations have been enabled by technology and when angel investors are looking for medical companies to invest in, they factor in not just the market size and potential, and evolving consumer lifestyles and demands, but also innovative technologies across therapeutic areas.
Novel Technology is the Next Step in Medical Companies to Invest in
Investors believe that companies that have gone public – many of which are life sciences companies – have novel products that haven’t been a traditional favorite in the medical device space. There is an expectation that novel technology will be the next step in the evolution of devices.
If you have a great concept you’re trying to get from the drawing board to the marketplace, you can have all the ambition in the world, but you won’t get very far without funding. Activation Investments is looking for medical companies to invest in today!
February 22, 2017 4:03 pm