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The Top 3 Medical Device Venture Capital Deals of Q2


Posted in Medical Venture Capital by Arundhati Parmar on July 10, 2014

Healthcare venture capital  funding swung from a decline in the first quarter to a five-quarter high in the second quarter with medical devices accounting for the lion's share of VC funding. Which were the biggest deals?


Venture capital funding had declined to 125 deals and $1.48 billion in the first quarter of the year, but in the second quarter jumped to a five-quarter high with with 161 deals worth $2.71 billion, according to a recent report .

CB Insights, a venture capital database which issued the report, also found that medical devices comprised the lion's share of healthcare VC funding in the second quarter, accounting for 36% of overall deals.

Here were the top three medical device deals of the quarter:

Holaira, which is developing a catheter-based system to treat chronic obstructive pulmonary disorder, raised $42M in Series D financing. The lead investor was Vertex Venture Holdings Ltd, while Windham Venture Partners, two strategic investors, and all of Holaira’s existing venture investors - Advanced Technology Ventures, Morgenthaler Ventures, Split Rock Partners, and Versant Ventures  - also participated in the round. The money will be used to fund a randomized lung denervention clinical trial.

Inspire Medical Systems, which makes a first-of-its kind implantable medical device to treat obstructive sleep apnea, raised a $40M Series E round. The lead investor was OrbiMed Advisors while new investors Johnson & Johnson Development Corporation and Aperture Venture Partners also participated. The money also came from existing investors such as Kleiner Perkins Caufield & Byers, US Venture Partners, Synergy Life Science Partners, Medtronic, GDN Holdings and TGap Ventures. Inspire Medical was spun out of Medtronic. 

Benvenue Medical, which makes devices to treat vertebral compression fractures raised $40M in a Series E round and $24 million in debt from Silicon Valley Bank. InterWest Partners, a new investor led the equity round, while existing investors like Versant Ventures, DeNovo Ventures, Domain Associates and Technology Partners - also participated.

[Photo Credit: iStockphoto.com user AlexSava]  

-- By Arundhati Parmar, Senior Editor, MD+DI
arundhati.parmar@ubm.com

 


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