2015 – Midwest Healthcare Startups Raise $1.5 Billion
2nd Largest Amount Raised in History; Record Number of Companies Funded
Cleveland, OH, February 17, 2016 – Midwest healthcare companies attracted $1.5 billion in new equity investments in 2015, according to the BioEnterprise Midwest Healthcare Growth Capital Report. The total amount raised is second only to 2014, and a record number of Midwest healthcare companies received funding.
Minnesota ($423 million), Ohio ($331 million) and Illinois ($217 million) led Midwestern states in attracting investment dollars. Minneapolis ($418 million), Chicago ($217 million) and Cleveland ($201 million) were the leaders in the Midwest regions.
“Midwest healthcare continues to perform at historic levels,” said Aram Nerpouni, president and CEO of BioEnterprise. “The medical device sector continues to thrive, attracting record dollars. Biotech and healthcare software and services are also at or near peak activity. Overall there is a healthy diversity of sector activity across an increasingly important geography.”
By sector, the 2015 growth capital funding was allocated as follows:
- Medical Device companies: $737 million (48%)
- Healthcare IT and Software and Services companies: $450 million (29%)
- Biotech and Pharmaceutical companies: $352 million (23%)
Minneapolis, Michigan, Missouri, Western Pennsylvania, Wisconsin, and Illinois had at least one medical device investment larger than $20 million.
Health Intelligence Company, a health IT/software services company in Chicago reported the largest fundraise, nearly $43 million. Missouri and Ohio companies also saw deals of $40 million or greater: Veran Medical Technologies, a medical device company in St. Louis and CloudBreak Health, a health IT/software services company in Columbus.
For state and regional results across the Midwest, see the tables included in the press release below.