Minnesota medical companies continue to draw strong investor interest according to the latest quarterly fundraising report from Golden Valley-based Medical Alley Association.
The latest findings from the association
tallied $117 million raised by 38 companies during the third quarter. For the first three quarters of the year, Minnesota medical companies have landed $335.8 million. That tops the previous high for fundraising during the first nine months of the year, putting it $22.5 million ahead of the pace in 2014.
Notable deals included Shoreview-based Torax Medical Inc.
and Minnetonka-based Cogentix Medical Inc.
, which both raised $25 million. Minnetonka-based Osprey Medical Inc. raised $11.2 million. Plymouth-based Rotation Medical Inc.
raised $8 million in its latest round of financing.
Medical Alley’s report does not count Minneapolis-based Tactile Systems Technology Inc., which went public in late July selling 4.1 million shares at $10 per share. The company reaped net proceeds of $35.8 million from the IPO
, after deducting underwriting discounts and transaction expenses.
While medical device companies continue to dominate Minnesota’s medical business climate, digital health companies continue to post strong growth. Medical Alley statistics found that digital health companies have raised a combined $104.3 million during the first three quarters, accounting for 31 percent of all fundraising for 2016.
“Medical Alley continues to attract capital and new investors,” said Shaye Mandle, president and CEO of Medical Alley, in a statement about the new report. “As other regions experience investment declines in health technology funding, our leadership and expertise is producing consistent record-breaking performance.”
Medical Alley tracked $448 million in fundraising for 2015, a recent high-water mark for Minnesota’s medical companies. Medical Alley Association has been tracking fundraising in the state’s medical sector since 2009.