Investors are looking more keenly at Midwest healthcare startups – cash invested has doubled this year over last, according to a recent report.
Some $777 million was invested across 139 companies for just the first half of 2014, according to the BioEnterprise Midwest Healthcare Venture Investment Report. By comparison, $758 million across 213 companies was raised for the totality of 2013.
The medical device sector won the lion’s share of dollars, receiving $342 million, or 44 percent of the funding. Biopharma received 31 percent, or $240 million, and healthcare IT rounded out the bottom with $196 million, or 25 percent. The region’s venture funding, state by state, can be seen below:
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
A number of large medical device deals in Minnesota help it clinch the spot as venture darling: The state had four deals that were more than $20 million apiece – Holaira raised $42 million for its lung device that treats COPD; Inspire Medical raised $40 million for its sleep apnea therapy; NxThera had an oversubscribed Series C for its endourology device and Tendyne raised $25 million for its device that treats leaky heart valves.
The Midwest’s largest deal is also the most recent – Missouri’s Essence Group Holdings last week raised $71 million for its population health management tool.
Cancer drugmaker ProNai Therapeutics raised the largest venture round in Michigan’s history with its $60 million Series D to further develop its DNA interference technology.
Other big deals include Indiana-based Orthopediatrics attracting $39 million, and Ohio’s Aerpio Therapeutics raising $22 million.
