Midwest health care startups attracted $1.1 billion in new investments across 166 companies in 2008, ranking the region third in the United States and maintaining a multi-year growth trend for Midwest health care investing.
Minnesota and Ohio companies collectively attracted the most investment dollars within the Midwest, with Michigan a solid No. 3.
All findings are reported in the Midwest Health Care Venture Report 2008 released today by Cleveland-based BioEnterprise and the Mid-America Healthcare Investors Network.
“The continued momentum seen in Midwest health care investments is the result of a concerted effort by the public sector, venture firms, accelerators, and research institutions to develop high-caliber health care startups," said Dan Broderick, President of MHIN and Managing Director of Prolog Ventures. "Midwest institutions are responsible for nearly one-quarter of the nation's NIH-funded research. This research is at the core of the startups that have spawned venture-backed companies, making the region home to over 300,000 bioscience employees.”
Minnesota ($331 million) and Ohio ($189 million) led all Midwestern states in dollars of investment attracted, followed by Michigan ($105 million) and Illinois ($97 million).
Michigan's total of investments, in 12 companies, is a sharp increase from $56.2 million in investments in five companies in 2007. And it's close to the record of $135.5 million in 11 companies in 2006.
“Midwest health care deals continue to mature and attract greater levels of investment both from Midwest-based venture firms as well as coastal investors,” said Baiju R. Shah, president & CEO of BioEnterprise, the Cleveland-based biomedical venture developer. “In addition, the Midwest health care pipeline has matured to the point where the region is seeing numerous high-profile acquisitions each year of venture-backed companies.”
The Midwest report notes that over the past two years, there have been several high-profile Midwest acquisitions in all health care sectors:
By sector, the 2008 equity funding was allocated as follows:
* Medical device companies: $524 million (48 percent)
* Biopharmaceutical companies: $380 million (35 percent)
* Health care software and service companies: $183 million (17 percent)
The 2008 Midwest Health Care Venture Investment Report highlights the Midwest region’s health care venture investments, notable acquisitions and IPOs, research, and technology transfer statistics. It aggregates activity across 10 Midwest states and Western Pennsylvania. For complete state-by-state and region-by-region results across the Midwest, see the following tables. Additional data about Midwest biomedical business activity can be viewed at www.bioenterprise.com/reports/index.html.
E-Mail Story
Print Story
