2016- Midwest Healthcare Companies Raise $1.7 Billion

2^nd Largest Amount Raised in History; Record Number of Companies Funded

Cleveland, OH, February 20, 2017 – Midwest healthcare companies attracted $1.7 billion in new equity investments in 2016, according to the BioEnterprise Midwest Healthcare Growth Capital Report. A record 375 Midwest healthcare companies raised the 2^nd largest amount in recorded history, edging within $60 million to the record-breaking 2014 year.

Minnesota ($424 million), Illinois ($327 million) and Ohio ($291 million) led Midwestern states in attracting investment dollars. Minneapolis ($422 million), Chicago ($324 million), St. Louis ($242), and Cleveland ($198 million) were the leaders in the Midwest regions.

“Midwest healthcare continues to perform at historic levels,” said Aram Nerpouni, president and CEO of BioEnterprise. “From 2015 to 2016 we saw an 11% increase in investment and an 19% increase in companies raising that investment. Within the past five years (2011-2016), the number of companies raising money, and the amount raised, has more than doubled.”

By sector, the 2016 growth capital funding is allocated as follows:

• Medical Device companies: $696 million (40.3%)
• Healthcare IT and Software and Services companies: $679 million (39.3%)
• Biotech and Pharmaceutical companies: $353 million (20.4%)

“Trending in the Midwest, as with the whole of the US, is investor interest in health IT and services,” continued Nerpouni. “Although the Midwest continues to be a stronghold in medical devices, investment in health IT and services increased 34% from 2015 ($450 million) and is essentially on par.”

Accretive Health, a Chicago health IT/software services company reported the largest fundraise in the Midwest, $200 million. Minneapolis followed with an $80 million raise by BrightHealth, also a health IT/software services company.