The post-pandemic funding landscape for medical device firms in Europe

ByHanover Team
Posting date: 15 November 2021

In our ultra-connected, ever-evolving world, healthcare is a topic that remains front and centre. Factor in longer lifespans and a pandemic that highlights the issues in existing medical infrastructures across the globe, and you’ve got two very tangible needs: a demand for increased (and better) health services, and instant accessibility. Only an innovative future of medicine can provide that.

However, funding specifically for medical device firms slowed during the pandemic, giving way for digital healthcare companies to access these funds during a time when online healthcare was given priority.

But what’s the fallout from this following the lifting of restrictions across Europe and the much-hoped-for end of the pandemic? Where are we now in terms of the funding landscape for medical device companies?

Northern Europe is once again becoming fertile ground for medical device innovators to seek out funding, with Switzerland, Germany and the Netherlands no doubt keen to retain their podium positions on the World Index of Healthcare innovation. In a time when economies have been crippled, the medtech industry has the potential to grow on a gargantuan scale, with venture capital and private equity funds flowing freely once more.

If you’re a medical device start-up, now is the time to strike, either by going directly to a VC or PE firm, or attending fairs where you can pitch your medical device products.

How recent mergers have impacted medtech funding

This is an interesting one. We’ve seen a number of mergers and acquisitions over the last 12 months, including the very recent acquisition of Baylis Medical Company by Boston Scientific for $1.75bn and the combination of Siemens and Varian in April 2021.

But what does this mean for the medtech funding landscape?

M&A is still a key growth driver for firms that have high growth targets, and with funding slowing in general over the last couple of years, acquisitions have been one of the only ways to meet these targets.

These acquisitions are turning firms’ attention away from VC and PE funding, and at the same time, those funds are now accelerating. That leaves medical device firms who perhaps aren’t in the position to make acquisitions or who can’t scale on that size in a better place to access this funding. In essence, there’s a good amount of funding to go for, and it’s more available.

Current funding opportunities for medical device firms

Some of the European funds that have been announced this year or that are open for pitches include:

Funds are out there. Examples of medical device companies that have recently been funded by EU venture capitalists and private equity firms include Oxford Nanopore Technologies, who raised $271 million for sequencing tools, split between existing and new investors, the latter including Wellington Management and Nikon.

Last month (October 2021), DeepSight Technology announced a $25 million series A funding round to develop medical imaging that’s 100 times more sensitive than current technology, and ZygoFix completed a $2 million round for a spinal fusion alternative in March this year.

Are you looking for funding in the medical device sector? Contact us to talk about placing senior level candidates who have experience in securing investments and growing medical device businesses.

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