On a national scale, venture investment in medical devices suffered last year while biotech saw a jump in investments. But new data paints a different picture for healthcare companies in the Midwest.
According to data collected and analyzed by BioEnterprise, a Cleveland-based life science business development group, medical device investments in the region grew last year while biotech investments took a nosedive.
Overall, healthcare venture capital in the Midwest leveled off at $758 million in 2013 after a banner year, where it reached $996 million, in 2012, according to BioEnterprise’s Midwest Healthcare Venture Investment Report (PDF).
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Buoyed by $15 million-plus rounds for Minnesota-based Conventus Orthopaedics, NxThera and CVRx, along with Cleveland-based ViewRay and ALung Technologies in Pittsburgh, the device sector saw a total of $423 million in venture dollars last year. That’s a 37 percent spike from 2012.
Meanwhile, Midwest biotech companies didn’t fare so well in securing investments. A dwindling cohort of early-stage biotech investors might have something to do with the drop from $487 million in 2012 to $183 million in 2013.
Investments in health IT companies in the region also took a slight dip, falling from $177 million in 2012 to $117 million last year.
BioEnterprise officials pointed out in the release of the report that more companies received funding in 2013 than in any of the previous five years.
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“The Midwest, in contrast to other parts of the country, remains strong in the medical device sector; in addition, the healthcare IT sector is showing signs of steady growth, with increasing numbers of companies funded each year,” said president and CEO Aram Nerpouni in a statement. “We anticipate an ever-growing pipeline of companies, primarily in the medical device sector and followed by healthcare IT.”
[Image credit: CVRx]
