Steady Pulse For Medical Startup Financing

Four companies raise more than $101 million in Q2.
Steady Pulse For Medical Startup Financing

Minnesota-based medical startup companies saw a healthy fundraising climate during the second quarter of 2015, with 38 companies raising $101.6 million in financing, according to LifeScience Alley.
The St. Louis Park-based trade association that issues quarterly updates on the state’s financing trends for health care-related companies released the new numbers this week. 
While the new second quarter numbers reflect a 15.7 percent drop compared to the $120.5 million raised in the second quarter of 2014, the $149.7 million of financing raised during the first six months of 2015 stands as the second highest amount raised for the first half of the year since 2010. But it may prove tough to match the record fundraising pace of 2014, when Minnesota medical companies attracted $431 million in financing.
The most notable trend was a 239 percent increase since last year in funding attracted by digital health companies, which raised $36.3 million in new financing during the second quarter. Medical device companies raised a combined $42.4 million and pharmaceutical companies drew $21 million.
Four companies raised more than $10 million during the second quarter:

  • St. Louis Park-based Novu, a technology platform to promote patient wellness, raised $20 million from two equity investors
  • Eden Prairie-based NeoChord, which has a device that allows mitral valve repair through a small incision, closed a $20 million Series C round with several investors
  • Edina-based Minnesota Medical Solutions, one of two companies in the state that will produce medical marijuana, raised $16.6 million
  • Minneapolis-based Gravie, which helps consumers sort through new health insurance options, completed a $12.5 million Series B round of financing led by new investor, Split Rock Partners

Novu and Gravie are both considered digital health companies. NeoChord is a medical device company and Minnesota Medical Solutions is considered a pharmaceutical company.