The most interesting medical technology investments, Kuhling and his ONSET partners believe are: those that use advanced technology to lower total costs for improved treatment of major acute conditions or chronic diseases such as diabetes, heart and lung diseases, or morbid obesity; and those that deal with the special needs of the growing aging population. To this end, the firm has been very active investing in these areas, with companies such as Apieron (www.apieron), BAROnova (www.baronova), Enteromedics (www.enteromedics), Relievant Medsystems (www.relievant), Sadra Medical (www.sadramedical), Valeritas (www.valeritas), and others gracing their portfolio – all of which meet these criteria.

“We are less concerned about the potential increased involvement by government in health care,” adds Kuhling. “Since today the government is already the largest payer of health care expenses, medical technology companies have needed to be aware of complex regulatory and reimbursement issues for years; at the end of the day, changes will be incremental, not revolutionary. And although health care reform is a very complex problem and will undoubtedly take some time to be worked out, medical technology startup investments will continue to be attractive.”

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