<< See All News Stories
Cleveland leads the Midwest in Attracting New Investments to Healthcare Start Ups
Both Ohio and Cleveland leads the Midwest in attracting new investments to healthcare start ups. Cleveland with $398 million nearly doubled its previous years' investment of $201 million as investors displayed growing confidence in the local and regional healthcare industry. Overall Midwest healthcare companies attracted $1.8 billion in new investments across 243 companies in 2014 according to the BioEnterprise Midwest Healthcare Growth Capital Report released in January 2015. The totals are the highest recorded in both dollars and number of companies funded since BioEnterprise began compiling the report in 2005, surpassing the banner 2007 by 46 percent and 2013 by 135 percent.
Ohio ($499 million) and Minnesota ($406 million) led Midwestern states in attracting investment dollars; Minneapolis ($403 million) and Cleveland ($398 million) were the leaders among Midwest regions. In both states and regions the number of companies receiving funding decreased.
“The significant increase in Midwest healthcare growth funding mirrors the national trend, as does the decrease in the number of early stage companies receiving funding in certain Midwest states and regions. The deals are getting bigger and this signifies a maturing of the Midwest healthcare innovation ecosystem,” said Aram Nerpouni, President & CEO of BioEnterprise.
“Interestingly, several Midwest states and regions, such as Illinois and Wisconsin, experienced large increases in both funds attracted and companies funded,” explained Mr. Nerpouni. “All in all there is a robust pipeline of attractive healthcare companies in all stages building rapidly in the Midwest.”
By sector, the 2014 growth capital funding was allocated as follows:
• Biopharmaceutical companies: $629 million (35%)
• Medical device companies: $593 million (33%)
• Healthcare IT and service companies: $562 million (32%)
“As with the national trend, the largest sector growth in the Midwest occurred in Healthcare IT and services,” said Mr. Nerpouni. “In 2013, the HIT and services sector comprised only 16 percent of the total funding, doubling to 32 percent in 2014.”
For state and region results across the Midwest, see the tables below. To view additional data about Midwest healthcare business activity visit http://www.bioenterprise.com/reports.