What could medtech lose from the Silicon Valley Bank shutdown?

A host of medtech companies dodged the loss of billions of dollars in Silicon Valley Bank deposits — but the space still faces challenges.

That is one of the big takeaways from the latest DeviceTalks Weekly podcast.

The FDIC shuttered Silicon Valley Bank on March 10 to stave off a bank run amid depositor concerns over how the bank had managed risk around rising interest rates. With $209.0 billion in total assets and about $175.4 billion in total deposits, it was the second-largest bank collapse in U.S. history.

Silicon Valley Bank was a huge name in the tech and startup world since its founding in the 1990s. SVB’s website said half of all U.S. VC-backed tech and life science companies used the Santa Clara, California–based bank. Especially vulnerable were startups and other young companies that parked their funds at the bank — and found themselves asking how much they’d get back above the $250,000 FDIC deposit insurance limit.

By Sunday, March 12,…

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The medtech companies potentially affected by Silicon Valley Bank’s closure

The California Department of Financial Protection and Innovation today closed Silicon Valley Bank, which could expose medtech companies with relations to the bank.

According to SVB’s website, half of all U.S. VC-backed tech and life science companies used the Santa Clara, California–based bank.

The FDIC — appointed as receiver in the closing — created the Deposit Insurance National Bank of Santa Clara (DINB). This protects insured depositors, the FDIC said in a news release. At the time of closing, the FDIC immediately transferred to the DINB all insured deposits of Silicon Valley Bank.

Silicon Valley Bank’s reach extends to medtech

BTIG analysts issued a list of companies that could be exposed to Silicon Valley Bank. This includes exposure through loan agreements, revolving credit facilities, and more.

The analysts stressed that the list is only based on these companies’ most recent filings. It lacks full additional detail that …

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Surgical robotic developer leads device makers in top healthcare VC deals

CMR Surgical’s Versius system console [Photo courtesy CMR Surgical]Surgical robotics developer CMR Surgical was the lone medical device maker in the 10 largest healthcare venture capital deals of 2021 in the U.S. and Europe.

That’s according to a ranking provided to Medical Design & Outsourcing by Silicon Valley Bank (SVB), which recently published its annual VC analysis drawing on its own proprietary information and data from Pitchbook.

Get the full story at our sister site, Medical Design & Outsourcing.

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Report: Medtech dollars, deals hit new highs in first half of 2021

Fueled at least in part by exceptionally strong IPO and M&A markets, hedge funds, venture capitalists, private equity firms and corporate investors are committing more time and money into privately held medical devices companies, according to a new “Healthcare Investments and Exits” report issued by Silicon Valley Bank.

The report examining the first half of 2021 outlines deals and dollars committed to all sectors within healthcare — while also tracking exiting opportunities for investors. An examination of the medical device portion of the report reveals many promising trends.

First, capital commitments are up. Looking at dollars raised, U.S. and European medical device startups raised $4.6 billion in the first half of this year, putting 2021 on pace to eclipse totals dollars raised in 2020 ($5.2 billion raised) and 2019 ($4.8 billion raised.) It’s worth noting that European startups accounted for 34% of the dollars raised by medical device companies, up f…

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Medtronic’s Kowal explains how remote medtech got its groove back

In this week’s DeviceTalks Weekly Podcast, Dr. Robert Kowal CMO of Medtronic’s cardiac rhythm and heart failure business and vice president of medical affairs, explains how new tech, savvy patients, eager physicians and, yes, COVID-19, has fueled a renaissance for remote technology, once seen as a mature, staid business.

Kowal, who left clinical practice to join Medtronic in 2017, identifies the building blocks that have allowed companies like Medtronic to provide devices that provided essential connectivity during the ongoing pandemic.

“Five or 10 years ago we were all saying cardiac implantable devices were a mature market, not much happening,” Kowal says. “Now, between the technology, these new devices and digital interconnectivity I don’t see it as mature any more. It’s a spry, young area once again. It’s. a lot of fun to be working in it right now.”

Kowal shares stories on how connectivity migh…

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How is COVID-19 affecting medtech deals?

[Image from Unsplash]

Fewer medical device companies are securing their first big venture capital investments — or engaging in large mergers — amid the COVID-19 pandemic, according to recently released reports from Silicon Valley Bank and PwC.

The medical device industry saw 38 Series A investments worth $279 million during the first half of 2020, down from 45 deals worth $408 million during the same period a year ago, according to SVB’s new mid-year “Healthcare Investments and Exits” report.

Meanwhile, PwC reports that the volume and value of medical device M&A deals decreased during the first half of the year. There were 28 medtech M&A deals worth $1.9 billion during the first six months of 2020, versus 38 deals worth $15.4 billion during the previous six months.

The numbers are but another indication that the medical device industry is not immune to the effects of the pandemic and the re…

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