Is Fixed Fee Pricing a Solution for Declining Venture Capital Investments in Medical Devices?

The 2014 second quarter (Q2) VC Investments MoneyTree™ Report from National Venture Capital Association and PricewaterhouseCoopers  was just released and

MoneyTreeReport_MedicalDevice_Dollars_2014it’s confirmed there is a continuation of the downward trend in medical device and equipment investments. This year medical device investments are at their lowest percentage of total (5.5% of $22.7 billion YTD) venture capital (VC) funding since 2001, when it received 5% ($2.1 billion) of the total $40.9 billion invested.

The Q2 2014 percent of total was also down -32% from Q2 2013, when it represented 7.4% of the $7.2 billion invested during the quarter. Despite the decrease in industryMoneyTreeReport_MedicalDevices_AvgDeal_2014 importance year-over-year, the total value of venture capital investments increased 23% and the average deal increased 30% to $8.9 million. There’s still room for optimism w/in 2014, as the highest average dollar amount per deal for the medical device industry was $9.3 million in the record breaking year of 2007.

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