u.s. healthcare venture fundraising...most active new investors in medical device defined as top...

3

U.S. Healthcare Venture Fundraising*

*SVB calculates only the dollars allocated to healthcare by U.S. venture funds.Source: PitchBook and NVCA.

$5.2

$1.8

$3.7 $3.6$3.9

$6.1

$7.5$7.2

$5.0

$0

$1

$2

$3

$4

$5

$6

$7

$8

2009 2010 2011 2012 2013 2014 2015 2016 1H 2017

HC

VC

$ F

un

dra

ise

d i

n B

illi

on

s

43% 9% 15% 15% 19% 17% 22% 18% 25%

Healthcare as % of Total US VC $ Raised

*SVB calculates only the dollars allocated to healthcare by U.S. venture funds.Source: PitchBook and NVCA.

Tota

l V

C C

apit

al I

nve

ste

d i

n B

illi

on

sP

erce

ntag

e o

f U.S

. Ve

ntu

re In

vestin

g

Device as % of Total US VC $ Invested

$32

$44$41

$45

$70

$79

$72

$38

0%

2%

4%

6%

8%

10%

12%

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

2010 2011 2012 2013 2014 2015 2016 2017*

10% 9% 9% 9% 7% 5% 5% 8%

$ Invested Device as a % of Total VC $ Invested

1H 2017

5*SVB calculates only the dollars allocated to healthcare by U.S. venture funds.Source: PitchBook and NVCA.

Device as % of Total US Healthcare VC Funding

Tota

l U

S V

C $

In

vest

ed

in

De

vice

in

Bil

lio

ns

Nu

mb

er of In

vestm

en

ts

$3.2

$4.0 $3.7$4.1

$4.8$4.3

$3.8

$2.9

475

546 571

591 608 583

492

282

-

100

200

300

400

500

600

700

$0

$1

$2

$3

$4

$5

$6

2010 2011 2012 2013 2014 2015 2016 2017*

$ Invested in Device # of Investments

42% 48% 44% 45% 41% 30% 32% 38%

1H 2017

3

6

8

5

5

13

2

1

6

7

4

Urinary

Respiratory

Ophthalmic

Orthopedic

Neuro

Cardiovascular

2016 1H 2017

6

Notes:Series A Investments includes all U.S. based first round investments from institutional investors, and all first round investments greater than $2M independent of investor type. Source: PitchBook and SVB proprietary data.

U.S. Series A Investments by Disease Focus (2016 – 1H 2017)

$85M

$47M

$58M

$29M

$20M

$30M

2016 1H 2017

# of U.S. Investments 59 32

Strategic Investments % / # 4% / 4 6% / 2

Total Series A ($M) $244 $132

Median Round Size ($M) $3.3 $3.0

$30M (8)

7

Notes:*One financing value was undisclosedSource: PitchBook and SVB proprietary data.

Imaging / Monitoring Neuromodulation / Electrotherpay

Surgical

Connected Care

$9M (4)$9M (4)*

$16M (5)

$3M (2)

U.S. Series A Investments by Modality (2016 – 1H 2017)

Neuro

Cardiovascular

Regenerative Medicine

Orthopedic

3

4

7

8*Most Active New Investors in medical device defined as Top 20 investors based on new investments in 2016–2017.

Source: PitchBook and SVB proprietary data.

KCK Group

Most Active Investors* in Device (2016 – 1H 2017)

# o

f D

eal

s P

er

Inve

sto

r

2

1

2

5

11

1

2

3

5

5

3

Metabolic

Ophthalmology

ENT

Orthopedic

Neuro

Cardiovascular

Development Commercial

9

by Disease Focus (2016 – 1H 2017)

*Most Active Investors in medical device defined as Top 20 investors based on new investments made in 2016–2017.


$199M

$375M

$145M

$180M

$153M

$113M

Development Stage Commercial Stage

# of Investments 33 25


Total Invested Capital ($M) $682 $783


10

Notes:

*One financing value was undisclosed


by Modality (2016 – 1H 2017)

Imaging / Monitoring Neuromodulation Surgical

Connected Care / Remote Monitoring

$74M (4) $122M (5)*

Cardiovascular (CVRx $113M)

Neuro

Regenerative Medicine

Orthopedic

$37M (4)*

Cardiovascular

$50M (2)$109M (5)

$161M (2)

$25M (1)

Gastrointestinal

2

3

1

4

1

6

Neuro

Oncology

Ophthalmic

Cardiovascular

Broad Focus Specialized

11

Broad Focus Specialized



Total IC ($M) $92 $138*


Notable Companies

2

$17M

$141M

$8M

$22M

Global Investments by Disease Focus (2016 – 1H 2017)

*Includes a $100M round raised by HeartFlow


4

4 4

OUS

US


3

5

1

3

Bionics/Cybernetics

Surgucal Robotics

12




Total IC ($M) $409 $180


Notable Companies

$337M

Global Investments by Modality and by Geography (2016 – 1H 2017)

Modality Geography

$252M

$535M

$54M

Surgical Robotics

Bionics / Cybernetics


14

Includes MedTech Transactions > $25M, excluding contract manufacturers and In vitro diagnostics announced between January 1st, 2013 to June 30th, 2017 in the U.S., E.U, and Canada

Source: CapitalIQ

# o

f Tr

ansa

ctio

ns

48 44 46

40

21

-

10

20

30

40

50

60

2013 2014 2015 2016 20171H 2017

# of US & EU MedTech M&A Deals (2013 – 1H 2017)

$54B $35B$22B$89B$21B

$48B$30B $26B

$14B $14B

15

Device VC Big Exits (2013 – 1H 2017)

Source: PitchBook, press releases and SVB proprietary data.

2

10 11

31

12

1719

13

5

0

5

10

15

20

25

30

35

2013 2014 2015 2016 1H 2017

IPO M&A

# o

f Tr

ansa

ctio

ns

1 1

42

1

31

5

4

2

8

15

10

7

2

2013 2014 2015 2016 1H 2017

Non-Approved CE Mark Only U.S. Commercial

*Stage defined as current stage of most advanced product.


Total TransactionsValue ($M)

2,305 4,296 3,718 4,379 1,535

Median Upfront ($M) 127 180 125 120 275

Median Total Deal ($M) 175 185 141 380 315

Median Years to Exit 6.6 6.9 7.0 8.1 9.9

16

VC-backed Device Big Exit M&A by Stage* (2013 – 1H 2017)

12

17

19

13

5

Q3

1

3

4

1

1

3

11

1

2

7

2

16

Neuro

Respiratory

Orthopedic

Ophthalmic

Cardiovascular

Non-approved CE Mark Only U.S. Commercial

17

VC-backed Device Big Exit M&A by Indication (2013 – 1H 2017)

*Stage defined as current stage in most advance product.


6.6

8.2

9.2

7.7

5.4

Me

dian

Years to

Exit

$7,322M

$3,421M

$1,340M

$524M

$695M

150

233

120

110

175

Me

dia

n U

pfr

on

t (M

$)

18

VC-backed Device M&A by Pathway 2015 – 1H 2017


2015 – 1H 2017 Stage at Exit

Median $

Invested

($M)

Median $

Up-Front

($M)

Median $

Up-Front

Multiple on

VC$

Median $

Total Deal

($M)

Median Total

Deal Multiple

on VC$

Median Time

to Exit

(Years)

510(k) Path

20 Exits$48 $100 3.0x $110 3.0x 9.3

PMA /

De Novo 510(k) Path

17 Exits

$57 $240 3.8x $380 5.8x 5.5

Biopharma M&A

47 Exits

23 Early Stage

(≤ Phase I)

24 Later Stage

(≥ Phase II)

$37 $200 4.5x $580 11.1x 4.4

FDA-Approved CE Mark Only Development Stage

1

1

6

10

18 1

19

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u.s. healthcare venture fundraising*...*most active new investors in medical device defined as top...

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u.s. healthcare venture fundraising...most active new investors in medical device defined as top...