Capital hit a three-year high in 2025. Clinical study initiations fell for the third consecutive year, with Q4 2025 starts dropping to 475 from 629 in Q4 2023. Divestitures represented more than a third of all strategic deal value. The Zapyrus MedTech Funding Report breaks down what's happening and what it means for the firms operating inside the service layer.
No paywall. No sales call required.
The headline number from 2025: total venture funding reached a three-year high. The story behind it is more complicated and more useful.
Deal counts are falling. Capital is concentrating in fewer, more established companies. The 501-1,000 employee bracket saw funding grow from $1.2 billion in 2024 to $3.2 billion in 2025. Meanwhile, the 51-100 employee scale-up zone remains capital-starved, with 4.4x fewer funded companies than the 11-50 bracket.
Clinical study initiations declined for the third consecutive year. Q4 2025 study starts fell to 475, down from 547 in Q4 2024 and 629 in Q4 2023. The 2025 funding surge hasn't yet translated to clinical pipelines. The lag is expected to materialize in H2 2026. Firms that prepare now will be positioned when volume returns.
This report maps both sides and translates every finding into a direct implication for service provider strategy.
Most MedTech market reports are written for the capital side of the table. Every finding in this report is translated into a direct implication for the CROs, CDMOs, eClinical vendors, and regulatory consultancies operating inside the device development ecosystem.
The 11-50 and 101-250 employee brackets captured the most deals. The 51-100 scale-up zone has 4.4x fewer funded companies than the 11-50 bracket. That threshold is where clients need the most support and where your pipeline opportunity is highest.
Q4 2025 study starts fell to 475, down from 547 in Q4 2024 and 629 in Q4 2023. But the funding surge of 2025 hasn't hit clinical pipelines yet. The lag is expected to materialize in H2 2026. CROs that build DCT and RWE capabilities now will be positioned when volume returns.
Carve-outs and spin-offs represented more than one-third of strategic deal value in 2025. Stryker, Baxter, BD, Medtronic, and J&J all completed or announced major separations. Carved-out entities need QMS, supply chain, and regulatory support immediately.
Siemens Healthineers alone projected a tariff impact of €400 to €500 million, illustrating sector-wide margin erosion. Supply chain restructuring is no longer optional for OEM clients. Service providers who can help navigate manufacturing location strategy are in active demand.
IVD makers choosing the EU as a first launch market dropped 40% as MDR and IVDR bottlenecks reshape launch decisions. On the US side, FDA is raising the bar on AI and cybersecurity requirements simultaneously. Regulatory sequencing strategy has never mattered more.
In a six-month test against live 2025 data, companies flagged as High or Medium opportunity represented 75% of all study initiations in H2 2025. High-bracket companies initiated studies at 10x the rate of Low-bracket companies. The model is available to service providers prioritizing their pipeline.
Most MedTech market reports are written for the capital side of the table. Investors and analysts trying to identify the next breakout OEM. This one is different.
It's written for the firms whose revenue depends on understanding where clients are in their development arc and where they're going. Not what the market is doing. What you should do about it.
Every section of the report ends with a direct service provider implication, grounded in the data, not abstracted away from it.
No paywall. No pitch deck attached. Just the intelligence service providers need to compete in 2026.
Download the 2025 Report →