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Top 20 Medical Device Venture Capital Firms

November 18, 2018

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If you have a great idea for a medical device or have already founded your own medical company, chances are you’ll eventually need to secure some funding to bring your product to market.

Medical device venture capital firms (commonly referred to as VC firms) specialize in providing startup companies in the medical sector with the capital, resources and expertise necessary for business growth, technology maturation, compliance needs, and commercialization.

Choosing a medical device VC firm to partner with for your medical device company’s future is as much about finding the right fit as it is about getting the best deal. A venture capital firm with connections and resources in your business niche can prove to be an extremely valuable partner, as you’ll find that many medical device VC firms focus their investments on just a few types of medical devices.

To help guide your organization toward the best potential pool of investors, we've created this list of the top 20 most active venture capital firms specializing in the medical device sector.

These organizations topped our list by completing the highest number of medical device investment deals between January 1st, 2013 and the present day, according to CB Insights. We've ranked investors by total number of deals over the past five years so you can see what firms are the most active and aggressive in funding and supporting medical device development.

In addition, we're also providing highlights from each firm’s portfolio to help you identify a partner whose specialties line up with the problems that your medical device company is trying to solve.

Once your medical device company is funded, you will need to consider these 15 Items Medical Device Startups Must Address, which include implementing a quality management system, as well as the can’t-miss exclusive on how to avoid a $20 million haircut with proper design controls.

Free Download: Grab your PDF copy of the Ultimate List of Medical Device Venture Capital Firms here.

Horizon 2020

Number of Deals since January 1st, 2013: 138

Founded: 2014

Website: https://ec.europa.eu/programmes/horizon2020/en/area/health 

Portfolio Highlights: HySolChem, ONEM

Horizon 2020 is a standout EU Research and Innovation program. Since 2014, they have distributed nearly €80 billion of funding towards companies and startups finding new ways to prevent diseases, developing better diagnostics and more effective therapies. They also have a hand in funding startups who are taking up new models of care and new technologies promoting health and wellbeing.

 

New Enterprise Associates

Number of Deals since January 1st, 2013: 85

Founded: 1977

Website: www.nea.com 

Portfolio Highlights: Acclarent, Earlnes, CVRx

New Enterprise Associates is a full service venture capital firm that makes investments ranging from $50,000 to $20 million in companies in virtually every sector of the economy. 

The venture capital giant focuses on new and emerging technologies, funding projects in big data, financial technology, cloud computing, solar and nuclear energy and semiconductors. On the medical side, they've invested in healthcare service firms, healthcare IT products, life sciences, biotechnology and medical devices, completing 65 medical device investment deals over the past 5 years.

A truly global firm, New Enterprise has funded companies worldwide in places like China, India, Brazil, and across the United States. The firm is based in Menlo Park, California.

 

SOSV

Number of Deals since January 1st, 2013: 79

Founded: 1995

Website: https://sosv.com 

Portfolio Highlights: BioROSA Technologies Inc., Ostoform

In the global venture capital and accelerator world, few names carry as much clout as SOSV. The firm bases its holdings and investments on food, hardware, biotechnology, and medical device design. It also focuses closely on the Asian technology markets, specifically in China. Their accelerator programs provide funding, mentoring, and training through a variety of specialized groups throughout the world.

Though they’re based in Shanghai, SOSV has another location in San Francisco, where they can offer the same level of support and guidance to medical device startups.

 

Qiming Venture Partners

Number of Deals since January 1st, 2013: 74

Founded: 2006

Website: https://www.qimingvcusa.com/ 

Portfolio Highlights: Cardialen, Element Science, Nuvaria

First founded in China, Qiming Venture Partners has been a longtime champion of China-US synergies. The firm launched its first U.S. fund in 2017, and has since established offices in Cambridge, San Francisco, and Seattle. To date, Qiming Venture Partners boasts over $5.54 billion in assets.

Much of this success has been due to its knack for identifying disruptive technologies in the medical device industry, as well as digital health and therapeutics. Though their portfolio displays a wide range of investment areas, medical device manufacturers looking to catch the eye of QVP might like to know they focus on tools for minimally invasive surgeries, neuromediation, and AI-connected devices. 

 

TMCx

Number of Deals since January 1st, 2013: 61 

Founded: 2014

Website: https://www.tmc.edu/innovation/about/tmc-x-companies 

Portfolio Highlights: Innosphere, Cloud 9, Abilitech Medical

Texas Medical Center Accelerator (TMCx) provides a gateway to the facilities, resources, and network of the world's largest medical center. With so many patients and providers, startups who work within this network are on the front lines of the fight for public health.

Medical device giants like Johnson & Johnson have offices on its campus, as do the dozens of talented and life-changing startups funded by TMCx.

 

EIT health

Number of Deals since January 1st, 2013: 58

Founded: 2015

Website: https://eithealth.eu/ 

Portfolio Highlights: Sleepiz, Orbit Health, Mirimark

EIT Health unites startups and organizations in medical device technology, biosciences, and life sciences to provide innovative breakthroughs to the EU. Their goal is to deliver solutions which enable European citizens to live longer, healthier lives. Though the EU spans many countries, borders, and millions of miles, it connects the right people and the right topics so that innovation happens at the intersection of research, education, and business.

EIT focuses its efforts on six primary areas of innovation: Reforming Care Pathways, Harnessing Real-world Data, Bringing Care Home, and Health in the Workplace.

 

Versant Ventures

Number of Deals since January 1st, 2013: 57

Founded: 1999

Website: https://www.versantventures.com 

Portfolio Highlights: Twelve Inc., Quanticel Pharmaceuticals, Second SIght Medical Products

Versant is a leading investor in the biotechnology, medical devices and health care space, helping exceptional entrepreneurs with great ideas make a difference in the global healthcare marketplace. 

The firm invests in projects across the healthcare sector and at various stages of company development, but focuses on firms developing novel therapeutics. Versant's website boasts that since its inception in 1999, it has helped more than 65 companies achieve successful acquisitions or IPOs.

 

Bpifrance

Number of Deals since January 1st, 2013: 55

Founded: 2012

Website: https://www.bpifrance.com 

Portfolio Highlights: Gecko Biomedical

Bpifrance (Banque Publique d'Investissement) is a French venture capital firm. They have made a significant name for themselves with startups and mid-sized companies by booting up their listing on the stock exchange and offering credit to equity. BPI France provides companies a continuum of funding at every stage of their development. 

This was especially true during the COVID-19 outbreak of 2020, when Bpifrance hosted the Covid-19 International Challenge, focusing on bringing new treatment devices to market in a controlled but expedited fashion.

 

Y Combinator

Number of Deals since January 1st, 2013: 53

Founded: 2005

Website: https://www.ycombinator.com 

Portfolio Highlights: ZenFlow, Reverie Labs

Y Combinator has become a unique and compelling model for accelerators in the medical device community. By partnering with Y Combinator, they provide a service known as seed funding for startups. Seed funding is the earliest stage of venture funding, and actually pays your expenses while you’re getting started. 

Though they don’t provide lab space for life science and medical device companies, they are able to find low-cost rates for developers and engineers, and work within the lab space established by the startup.

 

Venture Kick

Number of Deals since January 1st, 2013: 52

Founded: 2007

Website: https://www.venturekick.ch 

Portfolio Highlights: 4Devices Medical, KOVE medical AG

Venture Kick was launched in 2007 with the vision to double the number of spin-offs from Swiss universities, to accelerate their speed-to-market and to raise the attractiveness of these young companies among professional investors and industry partners. Selected members from a jury pool with more than 150 leading startup experts in Switzerland evaluate 20 startup projects at different stages at three sessions every month.

 

OrbIMed Advisors

Number of Deals since January 1st, 2013: 51

Founded: 1989

Website: https://www.orbimed.com/ 

Portfolio Highlight: Actus, Bonovo

OrbiMed Advisors is on the hunt for game-changing health science companies that will help all of us live longer, healthier lives. From biopharmaceuticals to medical devices to gene therapy, OrbiMed’s investments run the gamut—but they all focused on treating and curing illnesses that have plagued humanity for thousands of years. 

For more than 20 years, OrbiMed has been investing in companies across the healthcare industry that align with their mission. With more than $19 billion under management in both public and private investments, OrbiMed is one of the premier venture investors in the life sciences space.

 

Johnson & Johnson Innovation

Number of Deals since January 1st, 2013: 49

Founded: 1886

Website: https://www.jnj.com/ 

Portfolio Highlights: Ethicon, Biosense Webster, Zebra Medical Vision, Cartiheal

Johnson & Johnson’s strategic venture capital arm seeks out transformative opportunities within healthcare, helping solve some of the most critical problems in the medical industry. In 2020 alone, JJDC made more than 40 investments, deployed more than $500 million in capital, and had eight exits. 

JJDC currently has more than 130 active portfolio companies worldwide, deploying resources in discovery, clinical development, regulatory affairs, manufacturing, and more. With 47 years in the healthcare venture capital space, JJDC is one of the leading accelerators for healthcare startups.

 

Boston Scientific

Number of Deals since January 1st, 2013: 46

Founded: 1979

Website: https://www.bostonscientific.com

Portfolio Highlights: Cryterion Medical

Boston Scientific’s venture arm is committed to transforming lives through cutting-edge medical solutions developed in partnership with some of the most innovative healthcare companies in the world. With more than 40 investments spanning four continents, Boston Scientific truly takes a global approach to solving some of the most intractable problems in healthcare.

The more than $500 million they have invested in their portfolio companies is used to develop and nurture ideas from conception to fruition, helping to build a brighter future for everyone.

 

Hi Tech Gruenderfonds

Number of Deals since January 1st, 2013: 43

Founded: 2005

Website: https://www.en.high-tech-gruenderfonds.de 

Portfolio Highlights: AYOXXA Biosystems, Trademob, Mister Spex

High-Tech Gruenderfonds, also known as HTGF, is a unique venture capital firm that operates as a public-private partnership, with investment from the Federal Ministry of Economics and Technology in Germany, the KfW Banking Group and 39 Germany industrial groups, among other investors. The firm primarily invests in high-tech projects across all sectors, typically contributing up to 1 million euros in the seed stage with the potential of additional investment in later rounds.

HTGF has an impressive portfolio of approximately 490 companies, employees 50 people, and manages assets that total nearly a billion euros. The firm is based in Bonn, Germany.

 

Innovate Memphis

Number of Deals since January 1st, 2013: 42

Founded: 2011

Website: https://innovatememphis.com/ 

Portfolio Highlights: 901 Ride Choice

Innovate Memphis develops public-private collaborations that make an impact within the greater Memphis community. From ideation to development to implementation, the team at Innovate Memphis works to ensure that each initiative serves the larger goals of the community and is deployed in a sustainable, scalable manner. 

By bringing together public, private, and non-profit stakeholders, Innovate Memphis looks to understand the true causes of issues within the community and deliver solutions that tackle the underlying issues. The multi-faceted team of policy wonks, subject matter experts, design professionals, and community leaders hope to build a more equitable and innovative Memphis.

 

SV Health Investors

Number of deals since January 1st, 2013: 40

Founded: 1993

Website: https://svhealthinvestors.com/ 

Portfolio Highlights: AdaptHealth, Endontrix, Zerigo Health

The team at SV Life Sciences is driving innovation across the medical devices industry with over $2.7 billion in capital under management in seven private healthcare funds and one publicly listed fund. For entrepreneurs seeking funding for a new medical device, SV Life Sciences can provide all of the financing and resources required to take your product to market faster than you ever thought possible.

The firm focuses on companies operating in the healthcare sector, specifically those developing in-vitro diagnostics, medical devices and instrumentation, therapeutic proteins and antibodies and healthcare IT solutions. SV Life Sciences is based in Boston, Massachusetts.

 

Legend Capital

Number of deals since January 1st, 2013: 40

Founded: 2001

Website: http://www.legendcapital.com.cn/en

Portfolio Highlights : Bionano Genomics, Iflytek

Anyone in the medical device investor world should be paying attention to China’s markets, especially with a VC fund like Legend Capital in the mix. The firm has raised a total of $2.9B across 8 funds, many of which focus on medical device technologies like genetic testing equipment and speech therapy technology.

 

U.S. Venture Partners

Number of Deals since January 1st, 2013: 37

Founded: 1981

Website: https://www.usvp.com/ 

Portfolio Highlights: Aptus Endosystems, Atheromed, Intuity medical, Proteolix

U.S. Venture Partners is a venture capital firm that invests in healthcare and medical technologies, enterprise service technologies, internet security technologies and consumer retail products. based in Silicon Valley, the firm has invested in over 400 companies across its 30+ year history, including some well-recognized brands like GoPro, Sun Microsystems, and SanDisk.

USVP's expertise in business scaling and product development are assets to its partners, along with the extensive financial support that USVP can provide. The firm typically makes investments of between $10 million and $25 million dollars, especially in markets where the revenue potential exceeds $1 billion.

 

Deerfield Management Company

Number of deals since January 1st, 2013: 37

Founded: 1994

Website: https://deerfield.com/ 

Portfolio Highlights: Artms, Conventus, Cathworks

At Deerfield Management Company, the idea of making the world a better place comes to life. Much of this comes from their dedication to advancing healthcare,  thanks to information, investment, and philanthropy—all of which comes with the end goal of cures for disease, improved quality of life, and more affordable cost of care.  

It also comes thanks to its newest addition called Cure, Deerfield’s innovation campus on 345 Park Avenue South. There, innovators from across the industry and around the world work shoulder to shoulder to develop treatments that could end deadly diseases or change the payment models of healthcare itself. As of December 2020, the firm manages over $14 billion in assets.

 

Silicon Valley Bank

Number of deals since January 1st, 2013: 36

Founded: 1983

Website: https://www.svb.com/ 

Portfolio Highlights: HLS Therapeutics, Twist Bioscience, AtriCure

For over four decades Silicon Valley Bank has been a mainstay in the venture capital world. With deep experience in funding and financials for companies of all sizes, SVB has increased its position in the medtech and healthcare sectors over the past decade. Much of this success is due to the blend of in-house services it can provide portfolio companies.

The market has continued to notice their achievements, with rising stars like Twist Bioscience signing on, as well as a number of external VC firms conducting their banking needs there, too. 

 

Bonus: 4 Medical Device Funding Options Outside of Venture Capital

While digging into the data on venture capital firm investors, we came across several big-time names that deserve your attention. While these are not VC firms, these investors provide huge amounts of funding and resources to medical device companies around the globe. So, without keeping you any longer, here are the top 4 non-VC medical device investors of 2021.

 

Mass Challenge

Number of Deals since January 1, 2013: 171

Founded: 2009

Website: https://masschallenge.org

Portfolio Highlights: Digbi Health, Ejenta, 4Blind

As a startup accelerator, MassChallenge focuses on early-stage and big-impact entrepreneurs, providing financial support with no strings attached. Over $1 million in cash prizes is awarded annually to winning startups, with zero equity taken. Additional benefits for startups include world-­class mentorship and training, free office space, access to funding, legal advice, media attention, and over $10 million of in-­kind support. 

MassChallenge is a 501(c)3 nonprofit and all proceeds support the startups via the accelerator program. MassChallenge does not take equity or place any restrictions on participating startups.

In an effort to support medical device startups, MassChallenge co-founded the digital health innovation hub MassChallenge HealthTech. There, they accelerate high-impact digital health startups through strategic partnerships with established leaders in medical devices.

 

Med Tech Innovator

Number of Deals since January 1st, 2013: 127

Founded: 2013

Website: https://medtechinnovator.org

Portfolio Highlights: Ali, Fast BioMedical, Clara Biotech

Industry veterans and startups alike will no doubt recognize Med Tech Innovators. As the largest life science accelerator in the world for medical device, digital health, and diagnostic companies, their numerous conferences, showcases, trade shows, and road tours bring out thousands of companies and investors. 

Though in-person events are still matriculating, MTI has continued to unite and inspire through inventive online events and competitions. With 340 portfolio companies, 74 devices on the market, and over $2 billion in funding, it looks like this accelerator will be a catalyst of change for years to come.

 

National Institutes of Health

Number of Deals since January 1st, 2013: 81

Founded: 1887

Website: https://www.nih.gov 

Portfolio Highlights: 23andMe, Ginko Bioworks

As part of the U.S. Department of Health and Human Services, the National Institutes of Health is  the country’s authority on medical research and devices, as well as the world’s largest public funder of biomedical research. 

Thanks to their efforts to promote public health, multiple startups have been exited with major IPOs, such as 23andMe, Ginkgo Bioworks, and Recursion. The NIH also empowers dreamers and high-risk companies involved in medical devices through the NIH Common Fund.

 

National Science Foundation

Number of Deals since January 1st, 2013: 57

Founded: 1950

Website: https://www.nsf.gov

Portfolio Highlights: Atom Computing, Phase Scientific, Clorexo

With a name like the National Science Foundation, it should come at no surprise the organization covers a lot of scientific areas. With funding in areas such as computer science and the social sciences, NSF is the major source of federal backing. This is especially true for medical device innovation, with successful exits for companies like Caribou Biosciences. 

Additionally, the organization promotes STEM programming for students K-12, as well as colleges, as the NSF also contributes large numbers of grants and funding to private universities.

 

Medtronic

Number of Deals since January 1st, 2013: 51

Founded: 1949

Website: https://www.medtronic.com 

Portfolio Highlights: Salient Surgical Technologies, Semma Therapeutics

Medtronic is known as a global developer and manufacturer of vital medical device technologies and therapies which treat chronic diseases. However, they’ve also made quite a name for themselves by funding and acquiring small startups with massive potential. Primarily, those areas of medical device interest are in surgical equipment, therapeutics, and bioengineering.

Free Download: Grab your PDF copy of the Ultimate List of Medical Device Venture Capital Firms here.

Summary

Venture capital firms play a crucial role in the ecosystem of innovation, connecting people and ideas with the financing and resources they need to bring new products in life and improve medical care for Americans and people around the world.

The top 20 medical device venture capital firms all have the financial backing and resources to help you develop your medical device, get to market as quickly as possible, and move ahead with an acquisition or IPO at the right time for your company.

 

Sources

https://www.cbinsights.com


Looking for an all-in-one QMS solution to advance the success of your in-market devices and integrates your quality processes with product development efforts? Click here to take a quick tour of Greenlight Guru's Medical Device QMS software →

 

Nick Tippmann is the Chief Marketing Officer for Greenlight Guru, a MedTech Lifecycle Excellence Platform (MLE) that provides an industry-specific solution to help medical technology innovators around the world use quality as an accelerator to move beyond baseline compliance and achieve True Quality. Tippmann is...

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