Midwest Healthcare Companies Raise $1.8 Billion in 2014

CLEVELAND, Jan. 21, 2015 /PRNewswire/ -- Midwest healthcare companies attracted $1.8 billion in new investments across 243 companies in 2014 according to the BioEnterprise Midwest Healthcare Growth Capital Report.  The totals are the highest recorded in both dollars and number of companies funded since BioEnterprise began compiling the report in 2005, surpassing the banner 2007 by 46 percent and 2013 by 135 percent.

Ohio ($499 million) and Minnesota ($406 million) led Midwestern states in attracting investment dollars; Minneapolis ($403 million) and Cleveland ($398 million) were the leaders among Midwest regions. In both states and regions the number of companies receiving funding decreased.

"The significant increase in Midwest healthcare growth funding mirrors the national trend, as does the decrease in the number of early stage companies receiving funding in certain Midwest states and regions. The deals are getting bigger and this signifies a maturing of the Midwest healthcare innovation ecosystem," said Aram Nerpouni, President & CEO of BioEnterprise.

"Interestingly, several Midwest states and regions, such as Illinois and Wisconsin, experienced large increases in both funds attracted and companies funded," explained Mr. Nerpouni. "All in all there is a robust pipeline of attractive healthcare companies in all stages building rapidly in the Midwest."

The largest reported Midwest deal occurred in Wisconsin, where Shine Medical Technologies, a biotech company, raised $125 million. Naurex, an Illinois biotech, attracted two significant raises in 2014, totaling $105 million.

By sector, the 2014 growth capital funding was allocated as follows:

• Biopharmaceutical companies: $629 million (35%)
• Medical device companies:  $593 million (33%)
• Healthcare IT and service companies: $562 million (32%)

"As with the national trend, the largest sector growth in the Midwest occurred in Healthcare IT and services," said Mr. Nerpouni. "In 2013, the HIT and services sector comprised only 16 percent of the total funding, doubling to 32 percent in 2014."

For state and region results across the Midwest, see the tables below. To view additional data about Midwest healthcare business activity visit http://www.bioenterprise.com/reports.

The Midwest Healthcare Capital Report includes medical device, biotechnology and software/service investments, specifically seed, venture, individual and group angel funding, private equity, growth equity, bridge funding, convertible debt, foundation funding with equity component, strategic and corporate investment, secondary offerings and PIPEs. Data are compiled from PitchBook, Private Equity Week, Wall Street Journal, Venture Source, SEC Filings, company press releases, www.biospace.com, and regional Midwest organizations.

Regional organizations participating in the 2014 Midwest Healthcare Growth Capital Report include Life Science Alley (MN), Bio Crossroads (IN), Wisconsin Technology Council (WI), Innovation Works (Western PA), Dayton Development Coalition, BioOhio, and JumpStart (OH).

Regions are generally defined by 2012/2013 Combined and Metropolitan Statistical Areas.  A company's location is attributed to its headquarters region.

The Report is funded, in part, by philanthropic support from the Fund For Our Economic Future, the Cleveland Foundation and the Burton D. Morgan Foundation.

To view additional data about Midwest healthcare business activity, please visit  http://www.bioenterprise.com/reports. 

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, 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 twelve years.

Contact Information
Annette Ballou
216.658.4525 office
[email protected]
www.bioenterprise.com

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SOURCE BioEnterprise