According to this story in the San Francisco Chronicle, the medical device market is setting records for venture capital investments.

Underscoring the expanding investor interest in life sciences, deals for
companies making medical devices reached a record of $1.08 billion for 96
deals, a 60 percent jump from the level of funding in the fourth quarter of
2006.

"It was the strongest quarter ever for biotech and medical devices since
we started keeping numbers 10 years ago," said Mark Heesen, president of the
National Venture Capital Association, which published the study together with
PricewaterhouseCoopers based on data from Thomson Financial.

The biggest device investment lately is the $110 million bridge financing raised by CardioNet.