Government-related investors crucial for MedTech Startups

MedTech is different

MedTech is not just another vertical. This becomes particularly clear when you take a look at the biggest investors. In almost every sector, the usual suspects Y Combinator, Plug and Play, Techstars, and 500 Startups are leading the investor rankings, and governmental organisations only show up in the bottom  ranks.

For MedTech, the situation looks quite different: six of the ten biggest investors are governmental organizations. The only non-governmental investor in the Top5 is MassChallenge, a non-profit organization. 

On the one hand, this shows that the classic Venture Capital logic does not apply in the highly regulated medical marke, and on the other hand, that a strong MedTech ecosystem is dependent on governmental support — especially in the early stages.