Healthcare startups in the Midwest raised $507.8 million in the first half of 2015, spread across 144 companies. This was driven largely by venture activity in Cleveland and Minneapolis, according to the BioEnterprise Midwest Healthcare Growth Capital Report.
By contrast, nationwide biotech startups alone $7.8 billion for the first half of the year, according to Dow Jones. And this year’s Midwest investments are down from last year, when 139 startups raised $777.3 million.
This could stem from the fact that while biotech investment remains bullish, devicemakers are finding it harder to attract equity investment. And, of course, biopharma tends to concentrate on the coasts, whereas devices are often in the Heartland. But BioEnterprise highlights the upside:
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“In contrast to the national downturn in medical device investment, the Midwest device sector is consistently attracting investment with notable strengths in Minnesota and Ohio,” BioEnterprise CEO Aram Nerpouni said.
Indeed, Ohio companies led the way in terms of investment, bringing in $158.6 million. Minnesota came in next, with $100.5 million, followed by Wisconsin at $73.1 million.
Medical device companies raised the most equity – $227 million. This was followed by healthcare software and services, at $155 million, and biopharma at just $126 million.
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The largest fundraise actually came from NeuWave Medical, which received $25 million for its cancer ablation devices.
Here’s a state-by-state breakdown of the Midwest’s healthcare venture performance:
And here’s the same breakdown, by region:
