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Fostering Entrepreneurial Investment Decision in Medical Technology Ventures in a Changing Business Environment

Author

Listed:
  • Sonja Bettina Keppler

    (European Education Group AG, Liechtenstein)

  • Marieta Olaru

    (The Bucharest University of Economic Studies)

  • Georgiana Marin

    (The Bucharest University of Economic Studies)

Abstract

This paper presents the results obtained from a survey among public and private venture capitalists from countries which attract a large amount of venture capital investment: Germany, Switzerland, Austria and Israel. The objective is to investigate venture capitalists’ investment criteria for medical technology ventures in the start-up or expansion phase. Since existing research evaluated venture capitalists’ general investment criteria, the aim of this study is to provide specific results on entrepreneurial investment decisions for the medical technology sector, which constantly attracted a significant share of European venture capital. The research used semi-structured interviews with 39 venture capitalists and experts. The results show that venture capitalists prefer to invest in companies which develop products for treating and diagnosing diseases showing a high prevalence and large market volumes, such as cardiovascular, metabolic and neurological diseases, and orthopaedic disorders. The study confirms that venture capitalists use a number of industry-specific criteria highly relevant in a changing business environment. These include a high medical need for the product, availability of clinical data, stage of European Conformity approval, high probability of receiving reimbursement from health insurances, medical key opinion leaders supporting technology, management’s regulatory experience and their communication ability with doctors and key opinion leaders.

Suggested Citation

  • Sonja Bettina Keppler & Marieta Olaru & Georgiana Marin, 2015. "Fostering Entrepreneurial Investment Decision in Medical Technology Ventures in a Changing Business Environment," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 390-390, February.
    • Handle: RePEc:aes:amfeco:v:38:y:2015:i:17:p:390
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    References listed on IDEAS

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    Cited by:

    1. M. Beaulieu & P. Lehoux, 2019. "The emergence of health technology organizations among institutional healthcare and economic actors," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1115-1151, December.

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    More about this item

    Keywords

    entrepreneurial investment decisions; investment criteria; medical technology;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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