
Invented in America, Financed in Asia: Is Asia the Answer for U.S. Medtech Companies?
The past several years have not been easy for new U.S. medical technology companies. FDA approvals are growing more costly, as well as uncertain, as witnessed by several controversial, high profile rejections in recent years. The difficult regulatory environment has dampened the funding appetite of the venture capital community, which was already sagging in the aftermath of the Financial Crisis. PWC estimates that the dollar value of U.S. medical device venture deals was lower in Q3 2012 than at any point since 2004. With many IPOs either cancelled or postponed, much of VC funds’ remaining capital is reserved for follow-on funding for existing portfolio companies, leaving early stage ventures in the lurch.
