CHICAGO, Oct 2: Venture capitalists, long the lifeblood of medical technology firms, are growing cautious on the sector after seeing their returns squeezed in a time of growing cost pressures for healthcare, a report by Ernst & Young said. While venture capital investment levels have stayed fairly steady over the past five years, those funds were mostly raised before the financial crisis, the report said. The medical device industry’s recent challenges have prompted investors to seek out more mature companies that can offer quicker and less risky exits and have made it harder for start-ups to finance their operations. (agencies)
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