2025 MedTech Funding Soars, but Growth Isn’t Guaranteed Without Data-Driven Strategy
The global trade war is reshaping supply chains. Stock market turbulence is eroding investor confidence. Yet, in the eye of this storm, the MedTech sector just posted a staggering $18 billion in Q1 funding, up 47% from the previous year. This surge signals strong potential, but also raises a critical question for service providers: Where exactly should you focus your efforts to meet growth targets in an unstable economic landscape?
The answer lies in turning raw funding data into actionable intelligence. The Zapyrus 2025 Q1 financial data reveals powerful signals, buried in company size, therapeutic areas, funding round intent, and emerging trends like the rise of SaMD that can help service providers zero in on the MedTech companies most likely to need regulatory, clinical, manufacturing, and commercialization support in the next 6–12 months.
With market dynamics shifting rapidly, relying on intuition or outdated market maps isn’t just risky, it’s a recipe for missed opportunities. Zapyrus' Intelligence, including its Clinical Opportunity Score and Future Plan signals, enables MedTech service providers to move from reactive to predictive. And in 2025, precision targeting will be the difference between protecting your revenue pipeline or watching it slip away.
This report explores the latest funding trends, highlights the most active sectors and company types, and shows how actionable Zapyrus insights can help MedTech service providers stay one step ahead no matter how unpredictable the market becomes.
Q1 funding in MedTech sets the tone for market health for the rest of the year. As demonstrated in the Zapyrus 2024 MedTech in Numbers annual report, Q1 has consistently sat at the second largest quarter of funding over the past two years. This is important because the quantity of funding in Q1 sets the stage for performance of the MedTech market for the rest of the year.
The 2025 Q1 total funding is roughly $18 billion dollars, a 47% increase from Q1 of 2024. This massive increase in funding is made up of grants, venture capital and seed/angel investments along with IPOs and other public offerings. Several large deals coming from established MedTech companies boosted this quarter’s numbers well beyond the $12 billion from 2024. During Q1 2025, 26 MedTech companies received funding events equal to or greater than $100 million contributing to the rise in quarter-over-quarter funding in Q1. For comparison, Q1 2024 saw 14 deals in this range and Q1 2023 saw 6 deals respectively.
These funding totals continue to show the increase in MedTech market growth year over year since the COVID-19 cliff in 2022. However, funding totals only provide a high level understanding of the market health. It’s important to dive deeper into funding distribution in order to make the numbers actionable.
Figure 2. Total funding (in USD) by funding rounds vs the number of MedTech companies receiving funding in Q1 2025 in each round.
Looking at the funding distribution by funding rounds, we see that as the funding totals increase with increasing funding rounds, the number of companies receiving the funding decreases at an exponential rate. This means that the average amount of funding is lower at the earlier funding rounds. We may begin to see the effects of the NIH budget cuts over the next two quarters in the grant portion of this plot. For the current quarter, the grant funding totals remain healthy, rivaling Series A totals and even superseding Seed, Series D, and Series E+ rounds.
It is important to note that these funding totals do not make up the totality of funding this quarter due to many funding events being unmarked by their funding round. Additionally, companies that received multiple types of funding may be represented multiple times. Non-PIO public offerings accounted for approximately $11 billion in funding.
It’s critical for MedTech service providers to understand that not all funding rounds are created equally. The purpose of the financial injections into a MedTech company can act as a leading indicator to specific outsourcing opportunities. Below is a table that encapsulates that.
|
Funding Rounds |
Outsourcing Implications |
|
Grants |
Proof of concept/prototype R&D Regulatory strategy |
|
Seed |
All of the above Patents Preclinical testing Clinical planning |
|
Series A |
Clinical validation Manufacturing |
|
Series B |
Regulatory submission Commercialization |
|
Series C |
All of the above Patents Expand R&D Expand markets |
|
Series D |
All of the above Expand commercialization |
|
Series E+ |
Expand commercialization Expand product pipeline |
|
IPO |
All of the above |
Roughly 52% of the funding went towards companies with more than 10,000 employees and the remaining 48% are distributed amongst the rest of the companies. Funding for companies that are between 11 to 250 employees and 500 to 5,000 employees seem to be roughly similar while companies that have less than 10 employees and are between 251 and 500 employees are amongst the lowest funded segments.
Figure 3. Total funding (in USD) in Q1 of 2025 by company size (headcount).
Service providers seeking to pitch and sell to early stage startup companies may find it difficult to encounter well funded companies if they are not using a data driven approach to isolate them. In the mid market, MedTech service providers may want to focus their strategies for the second quarter on companies that are between 500 to 5,000 in size based on a stronger financial quarter in Q1 2025.
Figure 4. Distribution of Q1 2025 Funding by Therapeutic Areas.
As we analyze the funding distribution by therapeutic area (TA) in this quarter, we see that cardiovascular remains a dominant TA in MedTech capturing 18% of the total funding in Q1 while oncology and women’s health come close at approximately 15% each. Women’s health investments continue to increase from the past several quarters as noted in the Zapyrus 2024 annual report. Other notable well funded TAs are Neurology, orthopedics, gastroenterology, and ophthalmology. Wound care and infectious diseases are amongst the lowest funded this quarter. These TAs tend to be lower risk devices or IVDs and require less funding and regulatory costs in order to bring to commercialization. It’s important to note that some MedTech companies will be counted multiple times if they have medical technologies across multiple therapeutic areas.
Figure 5. Distribution of Total Funding in Q1 of 2025 to MedTech companies working on Device, In-vitro diagnostic (IVD), or Software as a medical device (SaMD) technologies.
Taking a look at funding distribution by technology type, we can see that IVD Q1 funding over the past 3 years have remained stable. Where we see massive shifts in funding distribution is a reduction in medical device funding and a larger than 5x increase in funding totals for SaMD this quarter, superseding even that of IVD. This suggests that there is a growing market opportunity for service providers that are expanding their services to cover SaMD technologies towards market approval and beyond. The increase in computing power, reduced costs for technology and the prevalence of accessible large language AI models make this segment of medical technology an ideal portion of the market to see the most growth over the next 5 years.
Zapyrus clinical opportunity score is a proprietary score found in Zapyrus that is designed for MedTech service providers to quickly and more accurately determine the likelihood that a MedTech company will initiate a clinical study in the next 6-12 months with 80% accuracy. Based on the Zapyrus Clinical Opportunity Score, we can see that 72% of the funded MedTech companies this quarter will have a high likelihood of initiating a clinical trial in the next 3 quarters while 5% is medium and 24% is low. MedTech CROs, eQMS, eClinical, CMOs, and commercial services need to focus their efforts on the 72% that will most likely convert into closed/won opportunities in the next few quarters.
Figure 6. Total funding (in USD) to MedTech companies in Q1 2025 by Zapyrus Intelligence Clinical Opportunity Score (Scored as the likelihood of initiating a clinical study in the next 6 months).
Zapyrus machine learning is trained to help MedTech service providers stay one step ahead of a critical milestone event such as design & development, clinical studies, regulatory approval, and commercialization. We call these signals, future milestone plans.
Figure 7. Number of future plans captured in Zapyrus by type over the past year. Future plans are captured by Zapyrus machine learning engine and are defined as mentioned by MedTech companies about future medical technology development.
As we can clearly see in Figure 6, the increased volume of clinical future plan activities from the past 3 quarters has resulted in a massive increase in regulatory submission and commercialization future plans. D&D plan volumes this quarter mirror that of Q2 2024. Therefore we can expect a spike in clinical and regulatory projects in Q2-Q3 of this year. MedTech CROs, regulatory consulting services, and CMOs should have an actionable plan to identify and connect with each one of these companies in order to maximize successful growth outcomes.
Figure 8. Total funding (in USD) to MedTech companies with Future Plans in categories: (a) Design & development, (b) Clinical, (c) Regulatory, or (d) Commercial by quarter over the past year.
The spike in funding to companies with regulatory future plans in Q3 2024 is primarily due to Edwards Lifesciences and a corresponding plan for CE marking. This funding alone represents $4.2 billion dollars (~90% of the funding to companies with regulatory future plans). If excluded, this value is consistent with the other quarters.
Increased funding to companies with clinical future plans in Q1 2025 is primarily accounted for by a large amount to Boston Scientific and a corresponding plan to initiate future clinical studies. This funding alone represents $1.6 billion dollars (~50% of the funding to companies with clinical future plans) If excluded, the funding is still trending higher in Q1 2025. This data suggests that funding for companies with future clinical activity may be trending upward relative to other stages of development (which is supported by Figure 6 above).
Figure 9. Average funding (in USD) received per Emerging MedTech company in Q1 of 2023-2025. Emerging MedTech companies were identified through early-stage keyword indicators in Zapyrus and have a company size <50 employees.
Emerging companies are defined as companies with less than 50 employees that have not yet reached commercialization and have received funding types such as grants, seed, angel, early stage venture. The number of emerging companies receiving funding in Q1 has been trending downwards, while the amount of funding per company is higher than in previous two years. This suggests that investors are more cautious of which companies they invest in but when they do, they are more committed to their success than ever before. Additionally, since there are fewer companies by volume that funding is being distributed to, it’s more important than ever that MedTech service providers use actionable and real-time data to identify the right companies to focus on.
Figure 10. Proportion in Total Funding amount by quarter received by MedTech companies working on Class III devices.
Funding towards Class III device development has been on a linear rise from Q4 2023 and seems to have plateaued from Q3 2024 to the current quarter. The increasing investment in companies working on Class III technologies supports the trends shown in Figures 6 and 8b suggesting upcoming clinical trial activity over the next few quarters. This suggests that MedTech CROs need to become more focused on targeting the right MedTech opportunities that are working on high risk devices seeking clinical and regulatory support.
Figure 11. Distribution of Total Funding in Q1 of 2025 to Commercial and Pre-commercial MedTech companies.
Commercialized MedTech companies make up 77% of the total funding this quarter where 23% of total funding is towards pre-commercial companies. This suggests that the majority of funding was towards companies that have found success in the past and have garnered for capital outside of revenue in order to scale out new technology pipelines. This is evident by the increase in patent volumes and Figure 3 above. This is good news for MedTech service providers who are seeking a more stable long term partnership with MedTech OEMs. The more stable commercial stage companies that are seeking new avenues to grow their revenue into new markets will need regulatory, clinical, manufacturing and commercial support.
The MedTech market is surging with opportunity, but growth is no longer guaranteed just because funding is flowing. From rising SaMD investment to increased clinical trial activity and shifts in funding distribution across company size and therapeutic area, 2025 demands sharper targeting, faster decision-making, and less guesswork.
MedTech service providers who rely solely on traditional sales cycles or industry reputation risk falling behind. In a market where timing, intent, and clinical readiness are everything, the winners will be those who act first and are armed with the right data.
That’s where Zapyrus comes in.
With proprietary tools like the Clinical Opportunity Score, Future Plan detection, and detailed breakdowns by funding round, company size, technology type, and therapeutic area, and many more, Zapyrus gives you a 360° view of MedTech companies most likely to convert into real business opportunities before your competitors even know they exist.
🚀 Whether you're selling regulatory strategy, clinical support, manufacturing, or commercialization services, Zapyrus helps you prioritize the right accounts, act on real signals, and close more deals, faster.
In 2025, don’t just watch the market evolve, lead it.
👉 Book a demo with Zapyrus today and turn market chaos into measurable growth.
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