Biotech IPO slowdown ignites medical device IPOs. Overall Life Science IPOs have Quadrupled by Q1, 2014

Life Science IPO boom extends to outside US market: Australia and Singapore. Biotech IPO slowdown ignites medical device IPOs overall Life Science IPOs have Quadrupled.
Medical device-maker QT Vascular priced its initial public offering (IPO) to raise S$55 million for product development and working capital. The deal will value the loss-making company at S$211.6 million upon listing. The all-new share offering will raise net proceeds of S$50.3 million for QT, which specializes in balloon catheters.
Venture-capital investment in medical devices grew 28%, the number of deals was down 37%. Despite the dip, biotech still managed to carve out a large part of venture-capital in New York's tech scene during the quarter.
"There are fewer companies attracting a large amount of capital," said Dr. James Healy, a general partner at Sofinnova Ventures, a venture capital fund.
Less venture capital financing is also partly a consequence of the public market's success—the number of biotechnology IPOs has quadrupled since 2012. Even early stage start ups are now attractive targets for IPO. Obesity and diabetes technologies will be hot IPOs to pursue.
"Not just specialists, but even generalist investors have started to participate in IPOs," Dr. Healy said.
The silver lining is that the deals that do happen have increased in size. And they're increasingly coming to New York—one the fastest-growing areas for med device, biotech venture capital. "There's been a large increase both in the amount of capital managed by fund managers that are based in [and around New York], and in the number of companies based there," Dr. Healy said.
That volume of capital was apparent in the first quarter. Although only nine New York-based biotech companies received investment, the overall amount of that investment totaled roughly $180.3 million.
Med device companies have a predictable outcome and this attribute makes it very attractive for investors. Traditionally, VCs ruled this space, now the secret is out, private and institutional investors hedge fund mgrs are taking advantage of this sector and taking companies public.