It's Starting: The Negative Trend in Medical Sector Fuding

Obamacare is not helping here. WSJ reports:

The medical-device industry, struggling to adapt to a thriftier health-care system, is getting squeezed by a venture-capital drought.

Investment in the medical-device and equipment industry is on pace to fall to $2.14 billion this year, down more than 40% from 2007 and the sharpest drop among the top five industry recipients of venture funding, according to an analysis of data compiled by PricewaterhouseCoopers and the National Venture Capital Association. Venture money received by the biotechnology sector declined 28% over the same period, while software startups recorded a 75% increase.[...]

The total number of investment deals in med-tech is projected to fall by a third this year from 2007, the data from PwC and the National Venture Capital Association show. The industry's share of total venture capital investment, meanwhile, is on pace to fall to roughly 8%, down from 12% the year before the financial crisis.