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The global biotech funding landscape in 2023: U.S. leads while Europe and China make strides

[Image courtesy of Sergey Nivens/Adobe Stock]

In 2023, the U.S. continued to demonstrate its position as the biotech funding leader, commanding over one-third, 35%, of the global investment in the sector. Overall, U.S. biotech firms attracted $56.79 billion in funding, according to a survey of Crunchbase data. Next in line was China, which contributed about 12.7% to the global funding pool, or $20.61 billion. Up next was Europe, which secured more than $11.46 billion and representing more than 7% of the worldwide funding.

While U.S. leads in total biotech funding, Chinese biotech companies, on average, saw larger funding rounds than either Europe or the U.S. The average funding size per company in China was roughly three times larger than that in the U.S. and six times larger than the average in Europe.

But while China-based companies had larger hauls, they were comparatively few. Chinese biotech secured …

Ex-Medtronic VC leader David Neustaedter starts his new job

David Neustaedter was formerly Medtronic’s VP of venture investments. [Photo courtesy of Medtronic]

David Neustaedter, the former VP of venture capital at Medtronic (NYSE: MDT), said today that he is now a venture partner at Deerfield Management Co.

Neustaedter said on LinkedIn that he started in his new role in the New York-based investment firm’s medical technologies practice this week.

August was his last month with Medtronic after a 14-year career, including seven years at Covidien before Medtronic bought it. It’s not clear who will replace him at Medtronic; the company has not responded to messages seeking more information.

PREVIOUSLY: Medtronic’s VC leader discusses risk, returns, strategy and an ‘ugly truth’

Deerfield reported more than $16.2 billion worth of assets under management for 10 clients identified as pooled investment vehicles in its latest disclosure wit…

Medtronic VC leader David Neustaedter leaves the company

David Neustaedter was formerly Medtronic’s VP of venture investments. [Photo courtesy of Medtronic]

David Neustaedter, VP of venture capital at Medtronic (NYSE: MDT), has left the world’s largest medical device maker for a private investment firm.

Neustaedter said on LinkedIn that August was his last month with Medtronic after a 14-year career, including seven years at Covidien before Medtronic bought it.

He did not name his next company, but said he is “looking forward to learning from a new group of talented professionals, and continuing to [support] some of the most promising companies in medtech.”

PREVIOUSLY: Medtronic’s VC leader discusses risk, returns, strategy and an ‘ugly truth’

The finance executive said he has served as director or observer on the boards of more than 25 venture-backed companies during his time at Medtronic. He estimated 1 million to 2 mill…

Medtronic’s VC leader discusses risk, returns, strategy and an ‘ugly truth’

David Neustaedter is Medtronic’s VP of venture investments [Photo courtesy of Medtronic]A panel of medtech investors convened today for DeviceTalks Boston included David Neustaedter, vice president of venture capital at Medtronic (NYSE: MDT).

He’s spent 14 years in the role, including as director of venture capital at Covidien before Medtronic acquired the company (read more in his DeviceTalks speaker bio).

Medtronic has more than $500 million in venture investments, managed by Neustaedter’s group and others in the company. Every investment handled by his group requires two things.

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

Medtronic’s VC leader discusses risk, returns, strategy and an ‘ugly truth’

David Neustaedter is Medtronic’s VP of venture investments [Photo courtesy of Medtronic]

A panel of medtech investors convened today for DeviceTalks Boston included David Neustaedter, VP of venture capital at Medtronic (NYSE: MDT).

He’s spent 14 years in the role, including as director of venture capital at Covidien before Medtronic acquired the company. (Read more in his DeviceTalks speaker bio.)

Medtronic has more than $500 million in venture investments, managed by Neustaedter’s group and others in the company. Every investment handled by his group requires two things.

“The first is we expect top-tier institutional venture returns on investments, and we’ve pulled that off for the last 14 years. So we’re sticking with that,” he said. “And then the second is really strategic fit with Medtronic. The usual form for that is, ‘Is this a company th…

Medtech analyst David Lewis launches new venture fund

Gilmartin Capital announced today that it launched its first venture fund to be led by medtech industry expert David Lewis.

Representing Gilmartin Capital’s first fund, the Gilmartin Capital Fund I, will focus on investment opportunities in the medical device, life science tools, diagnostics and digital health sectors, according to a news release.

Lewis, the Founder & Managing Partner of Gilmartin Capital, spent 25 years in medtech advising investors, companies and boards on strategic and financial direction, having spent the last 15 years as a Managing Director at Morgan Stanley, heading up the company’s technology equity research practice.

He said the COVID-19 pandemic catalyzed the importance of acute care medical devices, tools for driving therapeutic discovery and the need for remotely managing patients and believes that the San Francisco-based venture firm is “well-positioned” to deploy capital intelligently across the e…

Industrial biotech Bota Bio secures $100M in Series B financing

Describing itself as an “industrial biotechnology company,” Bota Bio has secured a total of $145 million in funding, thanks to a recent Series B funding round worth more than $100 million.

Bota Bio engineers microorganisms and biological components to make traditional manufacturing processes more sustainable. “One part of Bota Bio’s pharmaceutical business is focused on helping manufacturers of active pharmaceutical ingredients (APIs) make the transition from chemical manufacturing to biological manufacturing,” said the company’s co-founder and CEO, Cheryl Cui. Acknowledging that understand “many traditional chemistry products are very inexpensive,” Cui adds that many API manufacturers are looking to make their processes more sustainable. “Boat Bio can help with that,” she explained.

The company’s technology platform, the Bota Freeway, “takes advantage of currently available technologies and leverages a proprietary mix of digital and lab automation tools,” Cui …

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…

Medical device VCs give long-term pandemic perspectives

In Episode 10 of DeviceTalks Weekly, we talk with two successful starters of medtech companies about how they’re building and maintaining their medtech portfolios during this pandemic landscape.

Our guests this week are Dr. Justin Klein, managing partner of Vensana Capital, and Duke Rohlen, chair of Ajax Health. Together, Klein and Rohlen have created, backed and sold medtech companies that have generated billions.

Klein, formerly of New Enterprise Associates, now co-manages his own venture firm, Vensana Capital. He previously served on the board of directors of Cartiva (acquired), ChromaCode, CV Ingenuity (acquired), EPIX Therapeutics (acquired), FIRE1, GPB Scientific, Intact Vascular, Metavention, Personal Genome Diagnostics, PhaseBio Pharmaceuticals (IPO), Relievant Medsystems, Senseonics (IPO), Topera (acquired), Ulthera (acquired), Vertiflex (acquired), Vesper Medical and VytronUS (acquired).

Rohlen, who leads a holdings company backed by private eq…