Midwest Healthcare Startups Raise $758 Million in 2013

Ohio and Minnesota Leading States

CLEVELAND, Jan. 27, 2014 /PRNewswire-USNewswire/ -- Midwest healthcare companies attracted $758 million in new investments across 217 companies in 2013 according to the BioEnterprise Midwest Healthcare Venture Investment Report.  As with the nation-wide trend, Midwest investment decreased from 2012. Ohio ($296 million) and Minnesota ($228 million) led Midwestern states in attracting investment dollars; Minneapolis and Cleveland were the leaders among Midwest regions.

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"Overall, Midwest healthcare investment activity reflects the nation-wide decrease in healthcare investing; however, Midwest investment remains strong, outpacing 2009 and 2010 in investment dollars attracted. In addition, greater numbers of Midwest healthcare companies received funding in 2013 than in any of the previous 5 years," said Aram Nerpouni, President & CEO of BioEnterprise. "The Midwest has developed a robust pipeline of high quality companies."

By sector, the 2013 equity funding was allocated as follows:

• Medical device companies: $423 million (59%)
• Biopharmaceutical companies: $183 million (25%)
• Healthcare IT and service companies: $117 million (16%)

"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 Nerpouni.  "We anticipate an ever-growing pipeline of companies, primarily in the medical device sector and followed by healthcare IT."

The Midwest Healthcare 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 healthcare business activity visit www.bioenterprise.com/reports.

Table:  Midwest Healthcare Venture Investment (By State)

Table:  Midwest Healthcare Venture Investment (By Region)**

* 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 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 healthcare companies. BioEnterprise partners are Case Western Reserve University, Cleveland Clinic, University Hospitals, Summa Health System, and the Austen 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 170 companies in eleven years.

SOURCE BioEnterprise