Midwest health care startups reported a record-breaking $455 million in new investments in the third quarter of 2008, according to the BioEnterprise Midwest Health Care Venture Investment Report.
The previous quarterly record was $418 million in the second quarter of 2007.
Year-to-date, 113 Midwest health care start-ups have attracted nearly $900 million in venture investments.
In the third quarter, Michigan attracted $90 million to 10 companies, compared to $64.9 million to five companies in the third quarter of 2007 and $38.9 million to five companies in the third quarter of 2006.
“Despite the broader economic downturn, Midwestern health care start-ups continue to attract record levels of venture,” said Baiju R. Shah, president of BioEnterprise. “The Midwest continues to thrive because the region has a strong health care technology and talent base that is just starting to be discovered by national investors. In addition, the health care sector is seen as recession-proof.”
Minnesota and Ohio led all Midwestern states in health care investment, followed by Western Pennsylvania and Michigan.
“States that have made substantial investments in growing their biomedical clusters are, not surprisingly, attracting the highest level of venture investments,” said Shah. “Ohio, Michigan, and Pennsylvania have each invested several hundred millions in funding and plan to continue investing the same again to seed, build, and attract biomedical businesses.”
By industry sub sector, the investment funding breaks down as follows:
* Medical device companies: $462 million (52 percent)
* Biopharmaceutical companies: $272 million (30 percent)
* Health care software and service companies: $163 million (18 percent)
To view additional data about Midwest health care business activity visit www.bioenterprise.com/reports/index.html.
The numbers were compiled by BioEnterprise from Venture Wire, Private Equity Week, Wall Street Journal, Venture Source, SEC Filings, company press releases, www.biospace.com, and Midwest bioscience organizations and institutions.
BioEnterprise is a business formation, recruitment, and acceleration effort designed to support the growth of bioscience companies. Located in Cleveland, BioEnterprise provides management counsel and support services to health care companies. BioEnterprise's partners are Case Western Reserve University, Cleveland Clinic, University Hospitals, and Summa Health System. Additional partners include the NASA Glenn Research Center, Cleveland State University, NorTech, and BioOhio.
The initiative comprises the collective activities of BioEnterprise and its partners’ commercialization offices: the Case Office of Technology Transfer, Cleveland Clinic Innovations, University Hospitals Case Medical Center - Center for Clinical Research and Summa Enterprise Group. The combined efforts of these groups has created, recruited, and accelerated more than 80 companies in six years.
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