ARTICLE SUMMARY:
Early-stage investor Lightstone Ventures believes it can reap biotech-like returns on device holdings by tweaking the business model it uses to build its portfolio companies. By going deep on physiology, backing the science with strong data, and combining its choices with the ability to extract good deal terms at an opportune time, Lightstone expects to achieve high upside and comparatively early exits.
Broadly speaking (exceptions exist), venture capitalists’ returns on medtech holdings trail those of their biotech investments by a very long shot – and the ability of venture firms to raise capital for their device funds reflects that.
