The New England medical device startup community is an amazing innovation ecosystem, producing great products and great companies over several decades. New startups are the lifeblood of that ecosystem, so I’ve been tracking first-time venture financing of medical device companies in New England since 2005.
I’m way overdue for an update. You’ll find my 2014 Q4 New England Venture Funded Medical Device Startup List linked below.
It’s gotten really tough to start a new medical device company in New England. In 2014, I count three new medical device startup companies in the region, only one of which was financed by a “traditional’ medical device VC. In 2013, I count just four new companies. By contrast, in 2011, when I posted the first version of this list there were about eight new companies starting each year.
Fortunately, a couple of startups have moved to New England from other locations, and a couple of companies have re-started after a previous incarnation failed to take off. And plenty of companies that started before 2005 are still around. So the ecosystem is healthy, if not vibrant.
Healthcare IT, biotech and healthcare service startups are getting funded by the dozens – megatrends make these sectors attractive. VC’s are betting that IT will revolutionize healthcare as it has already revolutionized shopping, media, and travel. The wide-open biotech IPO window is drawing funds into the sector. The shift in risk from payers to providers and the consumerization of healthcare are driving a wave of new healthcare service models.
No such external force is driving medical device company creation. Entrepreneurs need to be creative to find a way to get funded. Angels, strategics, and non-traditional-device VC’s all have money to invest – in the right deal at the right price. While it’s not easy, it’s not impossible.
Do you agree? Take a look at my list, and tell me what you think: New England Venture Funded Medical Device Startup List 2014 Q4