Growth in medical device investments

Medical device companies are winning venture capital funding that until recently had been going to biotech companies. Last year, VC investments in biotech and medical device companies rose to a five-year high of $6 billion, according to the annual MoneyTree Survey. Investment in biotech ventures fell 7 percent but rose 25 percent in medical devices. The Wall Street Journal reports that investors are betting the market for devices will continue to grow as the US population ages. High-profile deals like the Guidant-Boston Scientific merger have also focused attention on the sector.

The article examines medical device startup Small Bone Innovations, which makes small bone and joint replacements and Transmedics, a company that makes devices that help organs function while patients await transplants.

- read this article from The Wall Street Journal (sub. req.)

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