“2023: A Rollercoaster Ride for Venture Funding with 31% Decrease”

TLDR: In 2023, venture funding in the medical device space decreased by 31% compared to the previous year. Factors contributing to this decline include high interest rates, inflation, and the Russia-Ukraine war. The total value of venture capital (VC) financing deals completed in 2023 was $21 billion, down by over half from the sector’s peak in 2021. The number of VC financing deals also dropped by almost 30% in 2023. The cooling off in the market reflected a shift from an abundance mindset to a scarcity mindset, where financing is focused on business fundamentals and profitability. The use of artificial intelligence (AI) in medical devices has seen growing demand, with the market forecasted to reach sales of $93 billion in 2023. AI has become a buzzword attracting investor interest and additional funding from both private and government sectors. The risk-averse financing climate is expected to improve, but the exact timing is unclear. Companies are advised to carefully manage cash flow and consider all types of funding sources to weather the lean times.