Christoph Ruedig, partner at Albion VC, the technology investment arm of Albion Capital, believes some of the uptick of investment in hardware-based medical technology may have come from a general increase in venture capital funding last year.
“I think on the med-tech side, it’s a more mixed picture generally. I think med-tech as an investment class in venture capital has suffered quite a lot over the last 10 years,” he said.
“CMR [Surgical] is certainly one of the exceptions, that is a very interesting company of course. Great companies with great technology always manage to raise capital. That can produce outliers and skew the numbers for the entire year.”
The health tech sector is likely to see more of a boost from companies developing digital solutions in the health sector due to the greater scalability of software businesses, Mr Ruedig added.
The wider findings of the report indicated “fewer but larger deals” as investors shift towards later-stage funding.
According to Cameron Stanfill, an analyst at Pitchbook, the growth in deal value was “assisted by above average deals but was not purely due to a few giant outliers”.
“The €10m – €25m size bucket made the largest year-on-year deal value increase. Deal count declines extended into another year, especially in the earlier stages of VC, as larger check sizes have pressured investors to be more selective,” he said.