Midwest Health Care Startups Raised $740 Million in 2010

Biopharmaceutical companies received the highest percentage of funding

In new investments across 161 companies, health care startups received $740 million in funding according to the BioEnterprise Midwest Health Care Venture Investment Report.

The total number of investments are comparable to 2008 and 2009, however the total dollars invested are down slightly (5%) from the prior year.

Illinois ($161 million), Ohio ($147 million), and Minnesota ($139 million) led Midwestern states in attracting investment dollars. Chicago, Minneapolis, and Cleveland were the leaders among Midwest regions.

"Overall, the past year was a difficult one for emerging health care ventures in the Midwest and nationally, though investment activity picked up towards the end of 2010," said Baiju R. Shah, CEO of BioEnterprise, the Cleveland-based biomedical venture developer. "Surprisingly, the number of companies receiving investments has remained consistently high through the recession. This is likely due to both the growth of Midwest-based funding sources as well as growing interest nationally in investing in the Midwest.

By sector, the 2010 equity funding was allocated as follows:

* Medical device companies: $278 million (38%)

* Biopharmaceutical companies: $358 million (49%)

* Health care software and service companies: $100 million (14%)

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