CLEVELAND – Midwest health care companies attracted $810 Million in new investments across 178 companies in 2011 according to the BioEnterprise Midwest Health Care Venture Investment Report. Sixteen Michigan companies received $30.8 million in investments, ranking the Wolverine state 7th out of 11 surveyed.
The total dollars attracted is up by ten percent from 2010; however it remains below the peak year of 2007. Minnesota ($223 million), Ohio ($178 million), and Missouri ($169 million) led Midwestern states in attracting investment dollars; Minneapolis, Cleveland, and St. Louis were the leaders among Midwest regions.
“As in other regions of the country, overall health care venture activity has increased slightly but remains below historical highs,” said Baiju R. Shah, President & CEO of BioEnterprise, the Cleveland-based biomedical venture developer.
By sector, the 2011 equity funding was allocated as follows:
? Medical device companies: $295 million (36 percent)
? Health care IT and service companies: $259 million (32 percent)
? Biopharmaceutical companies: $251 million (31 percent)
“While medical devices continues to be the Midwest’s strongest sector, investors have shown an unusually high level of investment interest in Health IT opportunities. Venture investors are drawn by both providers and payers searching for health IT applications that can improve effectiveness and efficiency of their enterprises,” said Shah. “At the same time, Midwest biotechs are suffering from the national venture industry’s shift away from early-stage biotech investing.”
The Midwest Health Care Venture Investment Report includes all reported numbers and regionally collected data. For complete state and region results across the Midwest, see the attached table. To view additional data about Midwest health care business activity click on href=”http://www.bioenterprise.com/Reports/” target=”_blank”>BioEnterprise.Com
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