Is Medtech Venture Capital Dead in the Water?

Is medtech venture capital like a rare, nearly extinct animal? You know, similar to one of those odd, but interesting animals we’ve all seen on the Discovery Channel? Like the Passenger Pigeon.

In fact, as recently as 200 years ago, Passenger Pigeons weren’t anywhere near extinction. They were actually the most common bird in North America. So what’s the parallel between the Passenger Pigeon and medtech venture capital? Answer: Scarcity!

VCs are becoming less and less interested in healthcare because of diminishing returns. With that said, will medtech venture capital eventually see the same fate as the Passenger Pigeon? Or is well-known VC Terry McGuire right in declaring that, “Darwin was an optimist”?

To help answer those questions and a host of others, enter Kevin Bitterman, Principal at Polaris Venture Partners. In this interview, we learn what medtech venture capitalists like to see in a startup and how these early-stage medical device companies can best position themselves for success.

Interview Highlights with Kevin Bitterman

• Will the IPO market for medtech companies ever open up again? Also, what requirements would make for an attractive IPO candidate?

• Where do large medical device companies see the greatest opportunity for growth?

• What questions should medtech startups have already answered before approaching a potential buyer?

• In terms of a potential exit, what is more important for a medical device startup – clinical data or commercialization?

• Besides venture capital, where else should medical device startups look for money?

• What is Kevin’s personal medtech investment psychology?

• After receiving his Ph.D. from Harvard Medical School, what attracted Kevin to the medtech venture capital space?

• Kevin’s lasting advice for early-stage medical device companies.