Medtech VC funding drought hits companies hard

The medical device industry is pursuing more alternative funding arrangements as venture capital backing in the sector is becoming scarce. Medtech entrepreneurs are assuming more debt, as well as looking to overseas family funds and wealthy individuals in the U.S. to back their ideas. Startups are also pursuing companies to acquire them earlier than they would have previously and are quicker to make deals with larger established companies, as in the case of St. Jude Medical's purchase of startup Nanostim this month.

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