Startup Outlook 2013 Unintended Consequences of the Medical Device Tax New medical devices improve patient outcomes, reduce costs, create jobs and contribute to a healthier US economy and balance of trade. For nearly a decade, rising regulatory costs, delays and uncertainty have made it harder for medical device companies to succeed. The Medical Device Tax that went into effect on January 1, 2013 is compounding other challenges that threaten US leadership in medical device innovation. svb.com/startup-outlook-report/ Expand overseas versus domestically Shift resources away from growth Reduce staff / hire less Try to raise additional capital Pass costs to customers Invest less in R&D 38% 23% 34% 28% 23% 23% Nearly 100 medical device startups told us how they will respond to the medical device tax.