At the Heart Rhythm Society’s HRX conference in Atlanta, Maria Berkman, a notable venture capitalist in the medical technology (medtech) sector, shared valuable insights into the intricacies of medtech investment. Berkman, who operates as the head of medtech at Broadview Ventures and managing director at Longview Ventures, articulated that the landscape of medtech investment is comparatively limited, with fewer than 100 funds solely dedicated to this field.
During a fireside chat with Jennifer N. Avari Silva, a pediatric cardiology professor and co-founder of electrophysiology startup SentiAR, Berkman outlined three key points that define the medtech venture capital (VC) environment.
Firstly, Berkman emphasized the passionate nature of medtech VCs. Despite the small number, these investors are deeply committed and face unique challenges. She stated, “We always say that there are far easier ways to make money than medtech VC. Innovation takes a very long time, and you have to be very patient with your time and your capital.” Medtech VCs tend to invest in life-changing technologies intended for critically ill patients, making their motivations and celebrations often centered around clinical rather than financial success. Berkman highlighted that the triumphs medtech VCs usually boast about involve pivotal clinical trials and approvals that integrate new, effective solutions into standard care practices.
Secondly, Berkman contrasted medtech VCs with their tech counterparts, clarifying that the strategies embodied in tech investment—summed up by the slogan “move fast and break things” often attributed to tech luminaries like Mark Zuckerberg—do not apply in medtech. The inherent risks and the nature of the products being developed and deployed in medtech involve human lives, demanding a far more cautious approach. She firmly stated, “We can’t break things because we don’t work with things. We work with patients.” This delineates the fundamental operational difference between tech VCs and medtech VCs, where the latter must engage with a higher level of precision and care.
A third major point Berkman discussed is the extensive timeline commonly associated with medtech ventures. She noted that it might take anywhere from 12 to 20 years for a medtech startup to navigate through the necessary clinical trials and regulatory pathways before their product can receive approval and begin generating revenue. Berkman pointed to Edwards Lifesciences’ Evoque tricuspid valve replacement system as a notable success story within her portfolio, which saw its inception in 2009 and only recently achieved FDA approval in February. This long journey from investment to market readiness reflects the patience and long-term commitment required from investors in this domain.
Additionally, the HRX conference and Berkman’s participation underscored the commitment of the Heart Rhythm Society to advancing the dialogue around cardiac health technologies. As mentioned, Katie Adams from MedCity News covered the event, with her expenses sponsored by the society, though retaining editorial independence.
These discussions and insights from leading experts like Maria Berkman reflect the complex, challenging, yet profoundly impactful nature of investing in medical technology. It is a sector driven by a dedication to transformative healthcare improvements that necessitate significant patience, diligence, and a focused approach differing substantially from other forms of venture capitalism, particularly those in the broader technology sector.
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