The tides have turned for med-tech financings as private companies are now raising the largest proportion of money. In the early months of 2021, 2020 and 2019, public companies took the greatest share. However, amounts raised overall are down by 50% over the same period of 2021 and the number of transactions has fallen 17%.
Med-tech financings in 2022 appear to be off to a bumpy start. The total amount raised in the first six weeks of the year is at its lowest point in comparison with each of the previous three years. Nevertheless, venture capital rounds, showing no signs of slowing from 2021’s record year, are accounting for the bulk of the activity.
Med-tech deals are showing a 136% increase in value, partially due to rising interest in digital health technologies, and despite decreasing activity focused on the COVID-19 pandemic. While deal values are up, the opposite is true for M&A values. They have fallen by 15% in comparison with the same time frame last year.
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