The in vitro diagnostics (IVD) market venture financing reached $8,626 million in 2020 and $10,492 million in 2021. In response to the increased demand for IVDs testing for COVID-19, and more options for cancer screenings IVD venture financing has already reached $4,305 million so far in 2022 and is set to lead medical device venture financing deals for the remainder of the year, says GlobalData.

The leading data and analytics company also notes that in addition to IVD and Healthcare IT, specialized sectors including oncology and neurology medical equipment and diagnostics imaging will lead venture financing deals in 2022 after reaching $13,570 million, $459 million, and $518 million in 2021, respectively.

Selena Yu, Medical Devices Analyst at GlobalData, comments: “IVD tests are performed on tissue and blood samples that have been removed from the human body. Recently, Delfi Diagnostics have raised $225 million in Series B financing for the development of blood-based liquid biopsy tests.”

According to the GlobalData Deals Database, the current 2022 value of venture financing deals across medical devices is $19 billion. Specifically, the year-over-year (YoY) change is highest in South and Central America growing 167%. North America and Asia Pacific regions see a conservative YoY change at 2% growth while Europe and the Middle East and Africa have a -8% decline and 0% even YoY change, respectively. For the end of 2022 we can expect a moderate decline of 20-30% in venture financing deals in IVD as COVID-19 cases lower and the COVID-19 IVD space becomes saturated with products. Additionally, as inflation increases investors may become more risk averse when choosing investments and thus lowering the overall venture financing deals in medical devices in general. Therefore in 2022 we estimate the value of venture financing deals will be around $35 billion with IVD estimated at $7 billion.

Yu adds: “The $820 million in venture financing that was raised in the oncology IVD space in 2021 demonstrates the industry drive for more accurate and accessible cancer screening tools. Most of the funds raised in oncology IVD in 2021 were attributed to creating minimally invasive early cancer detection tools. Cancer is a global issue therefore companies need to create low-cost and highly sensitive tests that can be used in different health care settings.”