The medical device and healthtech sectors in the US and Europe saw annual jumps in investment in 2019, increasing by 15% and 13% respectively, according to data from Silicon Valley Bank’s (SVB) annual 'Healthcare Investments and Exits Report'.
Medical devices investment for the US and Europe was up 43% since 2017 and healthtech investment jumped 95% over the same period.
Series A medical device deal activity set a record in 2019 across the two continents, increasing to 105 financings.
For future investment patterns, SVB predicated US and European medical device investments will probably decline to 2018 levels and Series A deals may also decline slightly in future.
The strong performance of the medical device sector should spur between six and eight initial public offerings in 2020 and include offerings in Shanghai and Hong Kong.
SVB said it predicts “M&A deals will increase in number and value as the appetite of large players and mid-tier acquirers increases”.
The bank added it is also likely the sector will see more device M&A and/or IPO activity in robotic surgery.
In addition, healthtech investments will continue to rise in 2020, said SVB, driven by provider operations and alternative care companies and expected that “2019’s successful public offerings will pave the way for more healthtech IPOs, specifically in the alternative care space”.