Minnesota Leads Region in Health Care Investments
Thirteen health care companies in Minnesota collectively received $88.3 million in investments in the first half of the year, the most of any state in the region, according to a report released Wednesday by BioEnterprise.
According to BioEnterprise's Midwest Health Care Venture Investment Report, 86 health-care start-ups in the Midwest collectively received $315.1 million in investments in the first half of 2011.
Minnesota led the way with $88.3 million in investments, followed closely by Ohio, whose companies garnered $80 million during the period.
The 2011 figures for Minnesota are well above last year's investments at this time-seven companies collectively received $42.8 million in the first half of 2010, according to the report.
For the Midwest, about $153 million in investments went to companies in the biopharmaceutical sector, $85 million went to medical device companies, and $70 million went to health-care software and service companies.
The dollar amount of investments was down for the region as a whole compared to the first half of last year when 75 companies collectively received $412.3 million in investments.
“While the number of companies funded remains high and similar to prior years, the total dollars invested is down compared to recent years,” Baiju R. Shah, president and CEO of BioEnterprise, said in a statement. “This is related to the significant increase in company M&A activity across the Midwest as growth-stage health-care firms are increasingly being purchased in strategic transactions rather than pursuing additional financing.”
BioEnterprise is based in Cleveland and focuses on funding, business formation, and recruitment for bioscience companies.