Why are we investing in Drug Development and hesitating with regards to Medical Devices or Diagnostics?

Part of the answer is obviously that our past experiences and successes fall within Drug Development – but also that both MedTech and Diagnostics seem to have a lower likelihood of getting to an exit once you have invested.

Defining the field for Medical Devices and Diagnostics can be challenging, but by using Pitchbook® industry codes in the figure below, our count is 30 EUR >50M transactions of VC funded EU HQ’ed companies in the period 2010 to 2020 on a background of 2,240 similar new companies financed during the same period – simplistically a success ratio of 1.3%.

Again using Pitchbook® industry codes, our comparable count for Biotechnology and Pharmaceuticals is 105 transactions based on 3,013 new companies and thus a success ratio of 3.5%. And apparently, the multiples are higher!

Accordingly, by those numbers, finding a successful European MedTech company is almost three times harder than finding a successful drug discovery company and you will be paid less …and we already think finding successful drug discovery companies is hard work 😊

What do you think?
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5 latest press releases

MinvervaX CFO & CDO Appointment

MinervaX ApS, a privately held Danish biotechnology company developing a novel, prophylactic vaccine against Group B Streptococcus (GBS), today announces the appointments of Jamila Louahed as Chief Development Officer and Hans Henrik Chrois Christensen as Chief...

Treetop Meeting

We usually do not share updates from internal meetings - but this was too fantastic not to share. A full day meeting in the midst of branches of +100 year old oaks and beech trees overlooking Isefjorden in “the treetop huts” at Ryegaard & Trudsholm Godser. Spiced...

Hans T. Scambye joins Sunstone as Venture Partner

Sunstone is delighted to announce that experienced biotech executive and CEO of Galecto Hans T. Schambye will be joining our team as new Venture Partner as of 1st February 2025. With a background as an MD and PhD Hans brings to Sunstone over 25 years of experience...

Neumirna Therapeutics secures euro 20M in Series A financing

Neumirna Therapeutics (‘Neumirna’), an RNA-focused biotech company developing next-generation therapeutics for neurological disorders, is pleased to announce the first closing of its Series A funding round at €20M. The investment was co-led by new investors, Angelini...

Ascelia Pharma Successfully Meets Primary Endpoint with Strong Headline Results in Orviglance Phase 3 Study

Ascelia Pharma AB (publ) (ticker: ACE), a biotech focused on improving the life of people living with rare cancer conditions, today announced that liver imaging drug candidate, Orviglance®, significantly improved visualization of focal liver lesions, successfully...

5 latest articles

Is biotech venture capital investing more to return less?

At Sunstone we continue to track risk-adjusted return multiples (adjusted for contingent payments) versus the total capital invested in private therapeutic companies prior to M&A exits. When looking at the median trends over the past 15 years, the inflection...

An update on M&A returns for biotech venture capital

Back in in 2019 Sunstone started sharing studies of European venture capital funded successes – i.e. M&A transactions. In 2021 we started adding US M&A’s to the data and later the same year we evaluated to which extent an IPO impacted the observations made....

Biotech ecosystem contributors!

Biotech ecosystem contributors! In our previous post, we discussed the importance of local investors and how, in a Danish context, they contribute to identifying and scaling local and regional therapeutic innovation. However, not all investors are born equal - and an...

Do local investors make a difference?

Do local investors make a difference? E-mail outreach, online meetings and digital data rooms have become a given when trying to finance a therapeutic innovation! So, do local or regional anchor investors matter when developing a bioinnovation ecosystem? If the local...

Seed & Series A in Denmark

Financing a Danish Biotech company has apparently never been more challenging. Based on feedback from partnering meetings in 2025 it seems that raising Series A financing has become an unprecedented challenge. However, when looking at the available data on the...

The 10 Advisements

We have the utmost respect for the courage, dedication, and resilience it takes to be an entrepreneur in our industry - especially when you’re out raising your next round of financing. That’s why we’ve decided to share our “10 Advisements” for crafting a compelling...