Midwest Health Care Startups Raise $572 Million Through Q3 2010

Illinois and Ohio Lead States; Chicago, Pittsburgh, Cleveland, and Minneapolis Lead Regions

Oct 28, 2010, 08:00 ET from BioEnterprise

CLEVELAND, Oct. 28 /PRNewswire/ -- Midwest health care startups reported $572 million in total investments across 111 companies through the first three quarters of 2010, according to the BioEnterprise Midwest Health Care Venture Investment Report.  Similar to last year, while the total dollar levels are lower than the pre-recession years, the number of companies financed remains the same.  

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"Funding for health care is reduced due to the recession and concerns surrounding the impact of health care reform on innovation," said Baiju R. Shah, President & CEO of BioEnterprise.  "Given the broader environment, it is encouraging to see so many Midwest health care companies attracting capital."

Illinois and Ohio lead the way in dollars of financings with companies in those states attracting $148 million and $89 million.  Minnesota, Michigan, and Wisconsin followed those states.  The report aggregates venture investment in 9 Midwest states and Western Pennsylvania.  

By sector, the equity funding was as follows:

  • Biopharmaceutical companies: $345 million
  • Medical device companies: $190 million
  • Health care software and service companies: $37 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

Thru Q3 2010


Thru Q3  2009


Thru Q3 2008


Thru Q3  2007


$ Millions

# of Cos.


$ Millions

# of Cos.


$ Millions

# of Cos.


$ Millions

# of Cos.

Illinois

147.7

8


38.8

5


78.2

7


100.5

4

Indiana

23.2

13


73.9

11


69.1

5


129.3

8

Iowa

-

-


14.3

3


4.0

1


-

-

Kansas

18.9

4


3.0

4


15.4

5


-

-

Kentucky

10.5

2


1.9

2


17.9

4


31.6

4

Michigan

62.3

7


88.7

11


90.0

10


64.9

5

Minnesota

78.5

10


134.0

16


289.9

20


212.7

17

Missouri

11.7

3


65.2

6


25.8

6


69.6

7

Ohio*

89.2

38


136.7

45


178.0

37


261.2

35

Western Pennsylvania

79.7

19


28.9

21


101.1

12


91.2

15

Wisconsin

50.1

7


9.9

7


27.5

6


39.7

9

Total

571.7

111


593.0

140


896.7

113


1,000.4

104




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

Region

Thru  Q3 2010


Thru  Q3 2009


Thru  Q3 2008


Thru  Q3 2007


$ Millions

# of Cos.


$ Millions

# of Cos.


$ Millions

# of Cos.


$ Millions

# of Cos.

Chicago

147.7

8


38.8

5


78.2

7


100.5

4

Indianapolis

15.8

7


39.2

6


69.1

5


107.3

6

West Lafayette

5.2

3


34.7

3


-

-


22.0

2

Louisville

10.5

2


1.9

2


13.4

3


5.7

2

Detroit-Ann Arbor

34.7

5


70.8

8


74.0

8


64.9

5

Minneapolis

78.5

10


133.3

15


289.9

20


212.7

17

St. Louis

11.7

3


25.1

4


25.8

6


57.6

7

Kansas City*

18.9

4


41.0

5


15.4

5


12.0

1

Cincinnati*

7.5

3


69.4

7


19.2

2


61.0

7

Cleveland

77.6

25


55.3

22


152.4

26


212.0

22

Columbus

3.1

5


11.7

12


6.4

9


13.2

7

Pittsburgh

79.7

19


28.9

21


101.1

12


91.2

15

Wisconsin

50.1

7


9.9

7


27.5

6


39.7

9


* 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 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 95 companies in eight years.

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