The Road Ahead for Medtech: Funding, Innovation, and Growth
We started the year with a bang! In the first week of the month, Stryker announced its acquisition of Inari Medical. Inari has been an innovator in its space, while Stryker is known for driving efficiency. It’s likely that the Inari business will be streamlined and potentially relocated from Southern California. While this could be a short-term hit to the job market in SoCal, acquisitions often have a stimulating effect, as they tend to drive increased investment in early-stage companies. It will be interesting to see whether M&A activity remains strong or slows down as alternative funding options become more accessible.
Speaking of alternative funding, one major event to watch is Beta Bionics, the artificial pancreas maker, filing for an IPO in 2025. This move could set the stage for other medtech companies to explore public offerings, offering insight into the broader market landscape.
Looking ahead, I see two potential paths: either the broader equities market continues to surge, opening IPO opportunities for smaller medtech companies, or a stock market slump drives more private investment into the space. Historically, when the stock market is strong, private investment in medtech—often seen as a slower-growth sector—can dwindle. Conversely, when public markets struggle, medtech investment tends to accelerate as high-net-worth individuals seek alternative opportunities.
No matter which direction the market takes, 2025 will be a pivotal year for medtech startups. Continued innovation is essential, as larger medtech companies often acquire technology rather than developing it in-house. Now more than ever, startup funding is critical to driving medtech innovation, which in turn fuels job growth in the sector.
As we close out the first month of the year, I’m excited about the innovation and opportunities 2025 will bring. Thanks for being part of my network!