Midwest Health Care Startups Raise $511 Million in First Half of 2012

Ohio and Minnesota Lead States

CLEVELAND, Aug. 3, 2012 /PRNewswire-USNewswire/ -- (CORRECTED) Midwest health care startups reported $511 million in total investments across 97 companies in the first half of 2012, according to the BioEnterprise Midwest Health Care Venture Investment Report.  The totals are the highest recorded for the region among the last five years both in dollars of financing and number of companies receiving investment, though still below the 2007 records.

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"It's been a great year to date for Midwest health care start-ups," said Baiju R. Shah, President & CEO of BioEnterprise.  "The regional company pipeline continues to advance, requiring larger financing rounds and attracting broader investor interest."

Ohio led the way in total financings with companies attracting $126 million, followed closely by Minnesota whose companies attracted $86 million during the period.  Among regions, Cleveland, Minneapolis, and Chicago were the leading areas for health venture investment in the Midwest.

By sector, the equity funding was as follows:

  • Biopharmaceutical companies: $259 million
  • Medical device companies: $131 million
  • Health care software and service companies: $118 million

The Midwest Health Care Venture Investment Report includes all reported numbers and regionally collected data. For complete state and region results across the Midwest see the attached table.

To view additional data about Midwest health care business activity visit http://www.bioenterprise.com/Reports/.

Table: Midwest Health Care Venture Investment (By State)

State

First Half 2012

First Half 2011

First Half 2010

First Half 2009

First Half 2008


$ Millions

# of Cos.

$ Millions

# of Cos.

$ Millions

# of Cos.

$ Millions

# of Cos.

$ Millions

# of Cos.

Illinois

84.3

4

18.0

1

123.4

6

42.6

4

34.2

4

Indiana

51.6

9

10.5

4

18.4

10

8.9

4

41.3

2

Iowa

-

-

-

-

-

-

3.0

1

4.0

1

Kansas

-

-

3.0

1

18.9

4

0.2

1

8.0

1

Kentucky

25.9

2

4.1

4

10.5

2

0.0

0

13.4

3

Michigan

55.9

9

21.8

5

35.8

5

64.7

5

73.5

8

Minnesota

86.1

9

88.3

13

42.8

7

117.6

12

106.4

9

Missouri

32.4

1

32.2

4

5.7

2

51.0

3

25.8

6

Ohio

126.4

44

80.1

25

47.3

27

86.9

33

84.0

20

Western Pennsylvania

32.8

12

8.2

12

59.6

7

18.6

12

25.1

6

Wisconsin

15.2

7

49.0

6

50.0

5

9.0

5

27.0

5

Total

510.6

97

315.1

86

412.3

75

402.5

81

442.6

65

Table: Midwest Health Care Venture Investment (By Region)**

Region

First Half 2012

First Half 2011

First Half 2010

First Half 2009

First Half 2008


$ Millions

# of Cos.

$ Millions

# of Cos.

$ Millions

# of Cos.

$ Millions

# of Cos.

$ Millions

# of Cos.

Chicago

84.3

4

18.0

1

123.4

6

42.6

4

34.2

4

Indianapolis

50.5

8

10.5

4

14.8

6

6.9

3

41.3

2

West Lafayette

-

-

-

-

2.8

2

2.0

1

-

-

Louisville

N/A

1

4.1

3

10.5

2

-

-

13.4

3

Detroit-Ann Arbor

55.9

9

21.8

5

31.7

4

47.5

3

61.0

5

Minneapolis

86.1

9

88.3

13

42.8

7

116.9

11

106.4

9

St. Louis

32.4

1

32.2

4

5.7

2

13.0

2

25.8

6

Kansas City*

-

-

3.0

1

18.9

4

38.2

2

8.0

1

Cincinnati*

40.2

5

23.8

4

7.0

2

46.6

4

19.2

2

Cleveland

104.1

34

50.2

18

36.7

17

30.5

17

59.9

10

Columbus

8.1

6

6.1

14

2.6

4

9.6

11

5.0

8

Pittsburgh

32.8

12

8.2

12

59.6

7

18.6

12

25.1

6

Wisconsin

15.2

7

49.0

6

50.0

5

9.0

5

27.0

5

* Border MSAs such as Kansas City and Cincinnati include deals from both states in those geographies; deals are aggregated into state totals based on the MSA's principal state

**Regions' totals do not equal states as not all areas are included in list of regions

Sources: Compiled by BioEnterprise team from Venture Wire, Private Equity Week, Wall Street Journal, Venture Source, SEC Filings, company press releases, www.biospace.com, and Midwest bioscience organizations and institutions.

About BioEnterprise

BioEnterprise is a business formation, recruitment, and acceleration effort designed to support the growth of bioscience companies. Located in Cleveland, BioEnterprise provides management counsel and support services to health care companies. BioEnterprise partners are Case Western Reserve University, Cleveland Clinic, University Hospitals, Summa Health System, and the BioInnovation Institute in Akron. Additional technology partners include the NASA Glenn Research Center, Cleveland State University, NorTech, and BioOhio.

The initiative comprises the collective activities of BioEnterprise and its partners' commercialization offices:  the Case Office of Technology Transfer, Cleveland Clinic Innovations, University Hospitals Case Medical Center - Center for Clinical Research and Summa Enterprise Group.  The combined efforts of these groups has created, recruited, and accelerated more than 120 companies in nine years.

SOURCE BioEnterprise Corporation



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