Midwest Healthcare Startups Raise $996 Million in 2012

Ohio, Minnesota, and Illinois Leading States

Jan 07, 2013, 09:58 ET from BioEnterprise Corporation

CLEVELAND, Jan. 7, 2013 /PRNewswire/ -- Midwest healthcare companies attracted $996 million in new investments across 182 companies in 2012 according to the BioEnterprise Midwest Healthcare Venture Investment Report.  The total dollars attracted is up by twenty-three percent from 2011. Ohio ($292 million), Minnesota ($165 million), and Illinois ($146 million) led Midwestern states in attracting investment dollars; Cleveland, Minneapolis, and Chicago were the leaders among Midwest regions.

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"Investment activity in Midwest healthcare deals continues its upward trend, outperforming previous years' activity for 3 years in a row.   As with the rest of the country, Midwest healthcare investing fell dramatically in 2009 after strong years in 2007 and 2008, but it appears investors are again optimistic about Midwest deals. 2013 should be an interesting year to watch," said Aram Nerpouni, Interim President of BioEnterprise, the Cleveland biomedical accelerator.

By sector, the 2012 equity funding was allocated as follows:

  • Medical device companies:  $309 million (32%)
  • Healthcare IT and service companies: $177 million (18%)
  • Biopharmaceutical companies: $487 million (50%)

"The Midwest typically sees more medical device companies than either healthcare IT or biopharmaceutical; however, biotech saw the largest influx of dollars in 2012 as investors continue to focus on  later stage biotech opportunities," said Nerpouni.  "Investment activity in Midwest healthcare IT remains robust as investors are drawn by payers and providers searching for applications to improve patient outcomes and efficiencies."

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)

State

2012

2011

2010

2009

2008


$ Millions

# of Cos.

$ Millions

# of Cos.

$ Millions

# of Cos.

$ Millions

# of Cos.

$ Millions

# of Cos.

Illinois

146.2

10

44.2

9

160.9

11

38.9

8

97.3

13

Indiana

64.7

11

14.1

9

25.05

16

76.3

14

75.4

7

Iowa

-

-

-

-

7.3

1

36.8

3

4.0

1

Kansas

-

-

18.5

2

14.5

13

4.3

5

16.9

9

Kentucky

33.8

4

11.5

7

11.4

4

97.3

7

19.2

6

Michigan

107.1

16

30.8

16

76.3

12

102.2

14

105.0

12

Minnesota

164.7

17

223.3

24

138.7

20

199.0

23

318.9

22

Missouri

57.2

6

168.7

9

19.9

9

65.8

8

50.2

11

Ohio

291.7

70

177.8

67

147.2

47

105.4

40

189.1

43

Western Pennsylvania

81.5

37

67.0

25

86.2

20

37.8

24

126.2

33

Wisconsin

48.8

11

53.8

9

51.3

9

16.2

10

48.5

8

Total

995.7

182

809.7

177

738.8

162

780.0

156

1,050.7

165

Table:  Midwest Healthcare Venture Investment (By Region)*

Region

2012

2011

2010

2009

2008


$ Millions

# of Cos.

$  Millions

# of Cos.

              $  Millions

# of Cos.

$ Millions

# of Cos.

$
Millions

# of Cos.

Chicago

146.2

9

44.2

9

160.9

11

38.9

8

97.3

13

Indianapolis

64.7

10

11.5

7

18.5

9

41.2

9

73.0

6

Louisville

7.9

3

11.4

6

11.4

4

2.5

4

13.4

3

Detroit-Ann Arbor

107.1

15

23.0

10

46.5

8

68.8

7

89.0

8

SW Michigan

-

-

7.8

6

29.8

4

14.5

5

16.0

2

Minneapolis

162.4

15

223.3

24

138.7

20

199.0

23

318.9

22

St. Louis

57.2

6

112.7

8

18.9

9

27.8

7

47.2

10

Kansas City*

-

-

18.5

2

15.4

13

42.3

6

19.9

10

Cincinnati*

77.3

12

37.3

6

8.5

4

121.2

8

19.2

2

Cleveland

226.5

43

124.7

40

135.1

33

66.3

21

163.5

31

Columbus

13.3

11

15.1

19

3.1

5

12.4

13

6.4

10

Pittsburgh

81.5

37

67.0

25

86.2

20

37.8

24

126.2

33

Wisconsin

48.8

11

53.8

9

51.3

9

16.2

10

48.5

8

* 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 130 companies in ten years.

SOURCE BioEnterprise Corporation



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