TLDR:
• Medtech VC investment in Q2 reached $3.3 billion, down slightly from the first quarter.
• VC exits hit $6.6 billion in the first half of the year, driven by Tempus AI’s IPO.
Medtech startups saw strong investment activity in the second quarter, with VC exits on the rise, indicating a positive outlook for the sector. While Q2 investment slightly decreased from the previous quarter, the $3.3 billion deal value marked a 3.2% increase year over year. Through the first half of 2024, medtech VC investment surpassed last year, with funding expected to be approximately 20% higher than in 2023. The second quarter saw an uptick in exit activity, with several VC-backed startups achieving successful exits, including Tempus AI’s notable IPO that raised $400 million. This IPO is seen as a positive development for the sector, potentially opening up opportunities for other unprofitable companies to attract investments.
Key deals in Q2 included Insightec’s $150 million raise and BillionToOne’s $130 million series D round. Large acquisitions, such as Johnson & Johnson’s $13.1 billion acquisition of ShockWave Medical and Boston Scientific’s $1.2 billion acquisition of Silk Road Medical, also highlighted the sector’s activity. Moreover, Illumina’s divestment of GRAIL and Tempus AI’s IPO showcase the potential for growth and innovation in the medtech industry.
The European Innovation Council Fund, SOSV, Alumni Ventures, and Arboretum Ventures were identified as the most active VC investors in medtech during Q2. The report also noted 28 PE buyouts and 19 PE growth deals in the sector, indicating a diverse range of investment activities contributing to the sector’s overall growth.
