In our second annual Life Science VC Survey, biopharma investors continue to look to oncology and rare disease, while their cold shoulder toward metabolic disease seems to be warming. Even though most agree the traditional biotech funding model is broken, our participants are far from convinced that new models such as asset-based financing are the answer.

The entire venture capital industry is facing difficult times. But few are taking as hard a hit as medical device investors. In our survey of 100 institutional and corporate VCs, 65% of the venture capitalists who said they invest primarily in medical device companies say they’re feeling “negative” about “the current state and future of VC.” Only 17% say they feel positive, with the remainder feeling neutral. Not surprising, device VCs’ worries center around limited partners and the FDA. Limited partners are demanding strong returns before re-upping with new funds, and the FDA, while improving, is holding a firm line in issuing new approvals. Device VCs keep looking for innovative technologies and waiting for opportunities to improve.

In our second annual Life Science Venture Survey, VCs paid their respects to the importance of corporate investors right now. For their part, corporate investors, many from long-established programs, said they are bullish about making more bets in early-stage companies.