Code red: The future of venture-capital investment in med-tech start-ups is bleak, says a new report from the National Venture Capital Association.
The survey of 156 firms—about half of whom have 10 to 29 active healthcare portfolio companies—found that 39 percent of VCs plan to decrease the amount they invest in biotechnology and medical device companies over the next three years. Another 39 percent said they already had reduced investment in those sectors.
The big culprit: The expensive, time-consuming process of getting the U.S. Food and Drug Administration's approval. By far the largest percentage of those surveyed (61 percent) cited regulatory concerns as the reason they planned to shy away from these types of investments. Thirty-eight percent named reimbursement concerns, and 35 percent fingered the financial markets. (Respondents could choose more than one reason.)
To read the full, original article click on this link: Report: VCs to Decrease Investment in Med-Tech Startups | Inc.com
Author:Courtney Rubin
