Investors Seeking Software-Enabled Medtech

17 Apr

By Michael Quigley, Research Manager, LSN

mike-2Big data has not gone unnoticed among early stage life science investors. The intersection of software and biology is one that the LSN research team has noticed to be an area of increased investor focus in recent months. The technologies in this space include devices or tools that are able to record and/or transmit biological data as well as software systems that are able to analyze sets of biological data for further use. Basically, this is the convergence of mobile technology, cloud data infrastructure, and next generation medical devices.

LSN tracks 244 investors active this space, and has secured over 100 mandates to invest in this sector over the last 10 months. Examples of technologies in this space include implantable or wearable devices that are able to generate and wirelessly transmit live information on the patient, or genomics platforms that are able to diagnose disease long before any symptoms are shown. These are just a few of the possibilities of those technologies, and applications for their use include increasing the efficiency of drug discovery and lead optimization, increasing the effectiveness of personalized medicine, increasing efficacy in clinical trials and ultimately significantly lowering the cost of healthcare all the way from drug discovery to critical care.

One class of investor that has taken particular interest in this space is the corporate venture capital arms of large healthcare providers. This is due to these devices’ ability to greatly lower the point of care cost by getting doctors and nurses accurate information on a patient’s health sooner, saving valuable time in emergency situations. Another interesting investor group with high interest here is investors and companies that historically have been more involved in the software and IT sectors, and see this as an opportunity to engage in the life sciences sector without straying too far from technologies they already understand.

This is a time of opportunities for companies in the space, as many of these sources of capital are just beginning to focus their energies on this sector. It means more capital, more opportunities to secure funding, and hopefully more products making it to market sooner. Stay tuned as LSN tracks upcoming developments in this space.

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