Minneapolis, Chicago and Cleveland lead the pack in investment, while
the number of Midwest companies receiving funding increases 20%
CLEVELAND–(BUSINESS WIRE)–In the third bullet (Top-performing States) the dollar amount for
Ohio should read $561 million (instead of $562 million). Also please
replace the photo with the accompanying corrected photo.
The corrected release reads:
INVESTMENT IN MIDWEST HEALTHCARE COMPANIES REMAINS STEADY AT $2.5
BILLION IN 2018, VALIDATING RECORD INCREASE OF 43% IN 2017
Minneapolis, Chicago and Cleveland lead the pack in investment, while
the number of Midwest companies receiving funding increases 20%
Investment in Midwest healthcare companies remained steady in 2018, with
$2.5 billion in capital raised by 438 companies. That amount of
investment validates the record increase of 43% seen in 2017,
demonstrating the sustained interest among investors in biomedical
companies in the Midwest. These were the findings of the 2018 Midwest
Healthcare Growth Capital Report, published annually by BioEnterprise,
which tracks capital investments made in biomedical companies across 11
Midwestern states in three sectors – medical device; biotechnology and
pharmaceuticals; and health IT/software and services.
“The significant increase in the number of Midwest biomedical companies
receiving funding over the last two years shows that there is a healthy
and growing pipeline of startups that will continue to fuel this
industry’s growth,” says Aram Nerpouni, president and CEO of
BioEnterprise. “Over the last five years alone, investment in Midwest
healthcare companies has risen by 40%, evidence that investors are
finding the Midwest as an ideal location for startups.”
2018 MIDWEST HEALTHCARE GROWTH CAPITAL REPORT HIGHLIGHTS
-
Health IT Leads Sector Performance: Total investment in health
IT/software and services companies reached $968.3 million (39%) in
2018, followed by biotech and pharma at $780.4 million (31%) and
medical devices at $750.3 million (30%). -
Five-Year Performance: Investment in Midwest healthcare
companies has increased by 40% over the last five years, and the
number of companies receiving funding has increased by 80%. -
Top-performing States: Minnesota led the Midwestern states in
the amount of investment dollars attracted in 2018 with $690 million,
followed by Ohio with $561 million and Illinois with $560 million.
Ohio led the pack for the number of companies receiving funding with
121 (28% of total companies), followed by Minnesota with 89 (20%) and
Illinois with 56 (13%). -
Top-performing Regions: The five Midwestern regions attracting
the most investment dollars were Minneapolis ($664 million), Chicago
($551 million), Cleveland ($294 million), Columbus ($163 million) and
Detroit-Ann Arbor ($125 million). -
Later-stage Funding Dominates: Later-stage investments made up
the majority of the capital raised by Midwest healthcare companies in
2018, though more than half of the deals were in the seed stage. Of
the total $2.5 billion raised, 61% consisted of later-stage
investments (138 deals), followed by early-stage (20%; 164 deals) and
seed funding (13%; 256 deals)
Click
here to view the full report. BioEnterprise compiles the annual
Midwest Healthcare Growth Capital Investment Report with the support of
regional partner organizations such as MATTER, Medical Alley
Association, BioOhio, Rev1Ventures, CincyTech, JumpStart and others. The
report is funded in part by the Fund For Our Economic Future, the
Cleveland Foundation and the Burton D. Morgan Foundation.
METHODOLOGY
The Midwest Healthcare Growth Capital Report compiles data from
Pitchbook, SEC Filings, company press releases, news items and regional
Midwest biomedical organizations and accelerators. The report details
investments in three biomedical sectors: medical device, biotechnology
and pharmaceuticals, and healthcare IT/software and services.
Investments include seed, venture, individual and group angel funding,
private equity, bridge funding, convertible debt, foundation funding
with an equity component, strategic and corporate investment, secondary
offerings and PIPEs. Funding is broken into three main categories: Seed
(includes: Accelerator/ Incubator, Friends and Family, and Seed), Early
(includes: Early stage VC, Series A, and Series B) and Late (includes:
Later stage VC, PE Growth & Expansion, PIPE, Series C, Series D, etc.).
Convertible debt, Angel, and Undisclosed funding rounds are included
within one of these three categories based on the company’s life stage.
ABOUT BIOENTERPRISE
BioEnterprise is a business formation, recruitment, and acceleration
effort designed to grow the Northeast Ohio healthcare industry. Located
in Cleveland, at the Global Center for Health Innovation and in
University Circle, BioEnterprise provides management counsel and support
services to health IT, medical device, and biopharmaceutical companies.
In addition, BioEnterprise convenes and leads strategy for
industry-building initiatives such as the Medical Capital Innovation
Competition, HIT in the CLE and the Global Center for Health Innovation.
BioEnterprise partners are Case Western Reserve University, Cleveland
Clinic, The MetroHealth System and University Hospitals. Additional
technology partners include the NASA Glenn Research Center, Cleveland
State University and BioOhio. Since 2002, BioEnterprise and its partners
have created, recruited and accelerated more than 350 health IT, medical
device, and biopharmaceutical companies, and have helped these companies
raise more than $3 billion in new funding. To learn more: www.BioEnterprise.com.
Contacts
Jennifer Keirn
Senior Director of Marketing & Communications
BioEnterprise
216.929.0682
jkeirn@bioenterprise.com
Angela Martin
Dix & Eaton
216.241.2148
amartin@dix-eaton.com