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?

July 10, 2014

2 Min Read
The Top 3 Medical Device Venture Capital Deals of Q2

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: user AlexSava]  

-- By Arundhati Parmar, Senior Editor, MD+DI
[email protected]

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