Oct 21, 2015

Michael Sheffield Senior Staff writerMemphis Business Journal Michael Sheffield Senior Staff writerMemphis Business Journal Gary Stevenson, principal of local venture capital firm MB Venture Partners, moderates… more Alan Howell | MBJ From Nov. 3-4, the 13th edition of the Musculoskeletal New Ventures Conference at the FedEx Institute of Technology will showcase 22 promising medical device startups. But the event is also going to address two of the most important issues for medical device startups, raising capital and the regulatory environment. Gary Stevenson, principal of local venture capital firm MB Venture Partners, moderates… more Alan Howell | MBJ Gary Stevenson , managing partner of MB Venture Partners, the conference’s long time host, said the panel discussions will cover the complicated environment companies face for product approval from the U.S. Food & Drug Administration and the decline in capital invested in medical device companies over the last five years. “It’s probably at historic lows,” Stevenson said of capital investment. “Biotech has been hot, but there’s no tax on them. Corporate investors have had to fill in the gaps to some extent that us venture capital firms have left.” Stevenson says between more strict FDA guidelines for product approval, the 2.3 percent excise tax on medical devices, and issues with reimbursements for new devices, major device industry players like Medtronic are waiting longer to acquire new technology. “They’re more excited about technologies that have proven themselves through sales,” Stevenson said. “In 2008, the spine industry was very frothy and companies were making acquisitions of companies that hadn’t been approved yet.” Stevenson says one thing he hopes the startups attending the conference learn is the importance of building a business over looking to be acquired by a larger corporation. Meanwhile corporations like Medtronic and Wright Medical have completed mergers with Covidien and Tornier N.V., respectively. Medtronic moved its headquarters to Ireland, where Covidien is based, a move that has been widely seen as a way to avoid the excise tax. “We tell every company we’ve invested in to keep their heads down, build a business and make sure it’s self-sustainable so you’re not relying on anyone to bail you out,” he says. The big companies have taken their eyes off the ball of acquisition of smaller companies. We hope they get over these distractions and turn their attention back to innovation.” Michael Sheffield covers bioscience and biotechnology; manufacturing; tourism and hospitality; and sports business. Contact him at msheffield@bizjournals.com . Industries