MN Attracted Most Health Care VC in Midwest in 2011
Health care start-ups in the Midwest attracted 10 percent more venture capital dollars in 2011 than they did the prior year, with Minnesota leading the way, according to a report released Monday.
A study by Cleveland-based BioEnterprise found that 178 health care companies across the Midwest pulled in a total of $809.6 million in financing last year. Minnesota accounted for $223.3 million of the total with 24 companies attracting investments during the year, all of which are based in the Twin Cities metro area.
Among the Minnesota companies, Maple Grove-based Entellus Medical reportedly attracted the most financing with a $35 million deal. It was followed by St. Paul-based NXThera, which raised $21.6 million. Meanwhile, St. Paul-based Apnex Medical and Minneapolis-based Ability Network, Kips Bay Medical, and SeeChange Health each raised $20 million.
The report tracked deals for 10 states and western Pennsylvania. Although the total amount raised in the region represented a year-over-year gain, it was still less than the amount raised in the peak year of 2007, the study found.
“As in other regions of the country, overall health care venture activity has increased slightly but remains below historical highs,” Baiju R. Shah, President and CEO of BioEnterprise, said in a statement.
Ohio ranked second in the report, with companies in that state collectively raising $178 million in 2011. Missouri came in third, with $167 million raised.
Medical device companies-accounting for 36 percent of the total-attracted the most funding, followed by health care IT and service companies (32 percent) and biopharmaceutical companies (31 percent).
BioEnterprise collected data for the report from various sources, including U.S. Securities and Exchange Commission filings, company press releases, media reports, and bioscience groups.
To see the full report, click here.