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Judyanna Yu, Managing Partner of Onesix8 Venture Capital The MedTech industry is entering a period of accelerated transformation driven by artificial intelligence (AI), digital health, and robotics, and venture investors are taking notice. With AI in healthcare expected to grow roughly 40 percent year-over-year throughout the next five years, the sector’s potential for innovation and acquisition has never been stronger. Yet, according to Judyanna Yu, Managing Partner of Onesix8 Venture Capital, the biggest opportunities aren’t always found where capital is currently flowing. “Investment opportunities south of the border have become overpriced,” Yu explains. “In Canada, valuations are far more attractive and the innovation pipeline is just as strong.” A Market Ripe for Smarter Capital Historically, the MedTech ecosystem has trailed biotech in both visibility and funding, but that dynamic is shifting. The cost to move a MedTech product from concept to commercialization (roughly $5 million to $20 million) is significantly lower than the hundreds of millions often required in biotech. More importantly, MedTech companies tend to reach acquisition faster. Data shows that MedTech exits typically occur within 10 to 12 years, compared to biotech’s longer horizon. Yu and her team believe that through operational discipline and strategic focus, those timelines can be shortened even further to three to five years post-investment. That acceleration appeals to venture funds seeking returns in a more predictable window. Derisking Through Operational Rigor Despite its promise, MedTech remains a complex and highly regulated space. That’s why Yu emphasizes the importance of pairing visionary science with operational excellence. MORE FOR YOU “MedTech investing isn’t just about finding brilliant ideas,” she says. “It’s about execution; how well a company can manage cash flow, hit regulatory milestones, and attract the right buyers.” Yu’s fund’s approach involves mapping each company’s inflection points, from FDA submissions to potential acquisition triggers, and aligning capital deployment with those milestones. This method not only clarifies valuation but helps founders understand the path to exit from day one. The Founder Factor Yu also highlights an often-overlooked aspect of MedTech investing: the founders themselves. Many are surgeons, clinicians, or academics building “first-in-class” technologies, but few have experience running a business. That’s where the right investor partnerships become critical. “The chemistry of the founding team, the strength of their advisors, and their openness to commercial guidance all influence whether a company succeeds,” she explains. “MedTech founders face a steep learning curve but when they’re paired with the right operational support, the results can be remarkable.” A Balancing Act of Risk and Return Venture capital will always involve risk, but Yu believes MedTech offers a uniquely balanced opportunity. The sector’s blend of innovation, tangible value creation, and shorter exit timelines stands out against an environment where many startups are struggling to find liquidity. “MedTech gives investors a way to participate in meaningful innovation while maintaining financial discipline,” she says. “It’s one of the few areas where the business case and the human impact move in the same direction.” As healthcare continues to evolve and technology deepens its role in patient care, MedTech may well become the next defining chapter in venture capital. The bottom line is that Yu believes that disciplined investing can redefine Canada’s innovation landscape. “Canadian founders are building world-class technology,” she says. “When we pair their ideas with financial and operational rigor, we not only grow great companies, but we also strengthen the entire ecosystem as well.” Melissa Houston, CPA, is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business, the founder of She Means Profit, and creator of ProfiVise — the “CFO in your pocket” that helps small business owners grow profit, manage cash flow, and make smarter financial decisions. She Means Profit is dedicated to advancing women entrepreneurs with the financial education, strategic coaching, and business resources they need to break financial barriers, scale profitably, and build sustainable wealth. Our mission is to increase the number of women-owned businesses generating $1 million+ in revenue, ensuring that more women achieve financial independence and long-term success. The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever. Editorial StandardsReprints & Permissions
