Glossary Term
Institutional Investor
Definition
An institutional investor is an organization or entity that pools and invests substantial amounts of capital on behalf of its members, clients, or beneficiaries. Examples include pension funds, mutual funds, insurance companies, endowments, and hedge funds. These investors typically manage large portfolios and influence markets with their investment strategies.
Relevance to the MedTech Industry
Institutional investors play a critical role in the growth and development of MedTech companies by providing substantial financial resources. They often fund clinical research, product development, and market expansion, and their involvement signals credibility and confidence in the company’s potential to other stakeholders.
Additional Information & Related Terms
Related Terms
Angel Investor: Individual investors who typically provide early-stage funding, complementing institutional investment later.
Series Funding: Institutional investors often participate in Series B or later funding rounds to support scaling.
Initial Public Offering (IPO): Institutional investors are key participants during IPOs, acquiring significant shares of newly public companies.
Mergers and Acquisitions (M&A): Institutional investors frequently fund or influence M&A activities in the MedTech sector.