Survey: Medtech Startups Respond to the Medical Device Tax
Young medical device companies say the medical device tax will delay profitability and hurt their ability to raise capital, spurring many to attemp to pass on the cost and to shift their focus overseas.
There are few surprises in the medtech industry's outlook on the impact of the medical device tax, but the burden weighs heavier on the industry's startups.
Most of the startup executives surveyed by Silicon Valley Bank said that the tax will affect their long-term growth, including delaying profitability and hampering fundraising efforts, but it has also hurt their morale.
Startup executives in the medtech industry were less optimistic than their peers in other industries about their general business environment, translating to lowered hiring and growth expectations, according to a survey conducted by Silicon Valley Bank.