San Diego Startup Funding Plummets in Q3, Hits 8-Year Low

San Diego County startups raised just $590 million in the third quarter, a significant 60% drop compared to the same period last year. This marks the smallest quarterly investment total the region has seen in eight years.

The decline is reflected in deal numbers as well. Only 48 venture capital deals were completed between July 1 and September 30, down from 61 a year prior – the lowest quarterly count in seven years, according to a report by PitchBook and the National Venture Capital Association.

Nizar Tarhuni, executive vice president of research and market intelligence at PitchBook, attributes the slowdown to “ongoing market hesitancy, driven by years of capital influx the industry was ultimately unable to absorb.”

Mike Krenn, managing director for Prebys Ventures, adds that securing funding is increasingly challenging for both early-stage and growth-stage companies in both the tech and life science sectors. He also points to the concentration of AI investment in the Bay Area, with large funds deploying considerable capital at high valuations, impacting other regions like San Diego.

Despite the overall downturn, Krenn notes the low total is partly due to a lack of exceptionally large funding rounds, but anticipates enhancement, stating, “We already have one $200 million round logged for Q4.”

This refers to San diego-based Crystalys Therapeutics, a clinical-stage biopharmaceutical company that recently secured $205 million in Series A financing, with participation from Krenn’s fund. Co-founded by biotech veteran James Mackay, crystalys’ drug, dotinurad, is already approved in Japan and China for the treatment of gout and is poised for advancement in the U.S. and Europe.

AI Focus

Nationally,Artificial Intelligence continues to dominate venture capital investment.According to PitchBook,Anthropic in San Francisco raised $13 billion in September,and xAI in Palo Alto secured $10 billion in July.

Locally, three of the top ten deals in Q3 went to AI startups. Alvys, a Solana Beach-based transportation management system leveraging AI and automation, raised $40 million in Series B funding in September. The company reports its customers experience a 30% increase in monthly loads, a 10% sales boost, and significant time and cost savings through automation.

Published: 2025/11/28 01:39:38

Boston Scientific’s Nalu System Poised for Growth in Peripheral Nerve Stimulation

Boston Scientific is anticipating strong performance from its Nalu spinal cord stimulation (SCS) system, projecting sales exceeding $60 million this year and approximately 25% year-over-year growth in the coming year. This growth reflects increasing demand for peripheral nerve stimulation as a treatment option for chronic pain conditions.

What is Peripheral Nerve Stimulation?

Peripheral nerve stimulation (PNS) is a pain management technique that uses low-level electrical impulses to block pain signals from reaching the brain.It differs from spinal cord stimulation, which targets the spinal cord directly. PNS is frequently enough used to treat chronic pain in specific areas of the body, such as the feet, legs, or hands, and can be effective for conditions like complex regional pain syndrome (CRPS), peripheral neuropathy, and phantom limb pain.Mayo Clinic provides a comprehensive overview of the procedure.

Nalu System and Boston Scientific’s Strategy

The Nalu system, developed by Boston Scientific, is designed to provide targeted pain relief through advanced stimulation technology. Jim Cassidy,president of Boston Scientific’s neuromodulation business,highlighted the significant unmet patient need in the field of peripheral nerve stimulation.Boston Scientific continues to invest in neuromodulation technologies to address these needs.

Key Features of the Nalu system

• Targeted Pain Relief: Designed for precise stimulation of specific nerves.
• Advanced Technology: Utilizes sophisticated algorithms to optimize pain management.
• Minimally Invasive: Typically involves a minimally invasive surgical procedure.

The Growing Market for Neuromodulation

The neuromodulation market, encompassing technologies like spinal cord stimulation and peripheral nerve stimulation, is experiencing substantial growth. This is driven by factors such as an aging population,increasing prevalence of chronic pain conditions,and advancements in neuromodulation technology. Grand View Research estimates the global neuromodulation market will continue to expand considerably in the coming years.

FAQ

What is the difference between spinal cord stimulation and peripheral nerve stimulation?

Spinal cord stimulation delivers electrical impulses to the spinal cord, affecting a broader area. Peripheral nerve stimulation targets specific peripheral nerves, providing more localized pain relief.

Who is a good candidate for peripheral nerve stimulation?

Individuals with chronic pain that hasn’t responded to other treatments, such as medication or physical therapy, may be considered candidates. A thorough evaluation by a pain specialist is necessary.

What are the potential risks of peripheral nerve stimulation?

While generally safe, potential risks include infection, lead migration, and discomfort at the implant site. Discuss these risks with your doctor.

Key Takeaways

• Boston Scientific projects Nalu system sales to exceed $60 million this year.
• The Nalu system is expected to achieve 25% year-over-year growth.
• Peripheral nerve stimulation is a growing field addressing significant unmet patient needs.
• Advancements in neuromodulation technology are driving market expansion.