Midwest health care companies attracted $1.8 billion in new investments across 243 companies in 2014, according to the Midwest Healthcare Growth Capital Report released today. The totals are the highest recorded in both dollars and number of companies funded since BioEnterprise, a Cleveland-based business formation initiative, began compiling the report in 2005.
In fact, the total amount of raised money grew 135 percent from 2013 when 217 companies secured $758 million.
The largest reported Midwest deal occurred in Wisconsin, where Shine Medical Technologies Inc., a Monona-based biotech company, raised $125 million. Overall, 27 Wisconsin companies attracted $187 million investment dollars in 2014, compared to 7 companies earning $17 million in 2013.
Ohio and Minnesota were the two Midwestern states that drew the most investment dollars with $499 million and $406 million, respectively. That is up from $296 million and $228 million in 2013.
The number of companies in Ohio and Minnesota attracting investment dollars, however, decreased. Sixty-nine Ohio companies secured money in 2013 compared to 52 in 2014, and 74 Minnesota companies raised money in 2013 compared to 65 in 2014.
“The significant increase in Midwest health care growth funding mirrors the national trend, as does the decrease in the number of early stage companies receiving funding in certain Midwest states and regions. The deals are getting bigger and this signifies a maturing of the Midwest health care innovation ecosystem,” said Aram Nerpouni, president and chief executive officer of BioEnterprise.
“Interestingly, several Midwest states and regions, such as Illinois and Wisconsin, experienced large increases in both funds attracted and companies funded,” Nerpouni continued. “All in all there is a robust pipeline of attractive health care companies in all stages building rapidly in the Midwest.”
In 2013, 10 Illinois companies drew $30 million, compared to 21 companies securing $194 million in 2014.
Out of the total $1.8 billion that Midwest health care companies attracted in 2014, biopharmaceutical companies made up the biggest sector with $629 million. Medical device companies accounted for $593 million, and health care IT and service companies attracted $562 million.
“As with the national trend, the largest sector growth in the Midwest occurred in health care IT and services,” Nerpouni said. “In 2013, the HIT and services sector comprised only 16 percent of the total funding, doubling to 32 percent in 2014.”
For more results across the Midwest, click here.