Minnesota's Medical Alley-Based Companies Raise Record $335.8M YTD After Q3 Raise Of $117 Million
MINNEAPOLIS--(BUSINESS WIRE)--Minnesota’s health technology sectors continue to secure unprecedented investment with a Q1-3 total raise of nearly $336M. 2016 YTD investment totals follow three consecutive years of record-breaking fundraising. Sustained innovation, a tenured entrepreneurial community and growing investor interest from the coasts and Midwest are significant drivers of the successful ecosystem in Medical Alley.
“Medical Alley continues to attract capital and new investors. As other regions experience investment declines in health technology funding, our leadership and expertise is producing consistent record-breaking performance”
Highlighted in the Medical Alley Association’s Q3 Investment Report published today, the medical device sector – a legacy investment leader – continues to dominate with a Q3 total of $102.4M and YTD, 33 device companies have raised $201.6M. Major sector raises were led by Torax Medical and Cogentix Medical, both at $25M. Other notable raises include Osprey Medical ($21M), CVRx ($11.2M) and Rotation Medical ($8M).
The digital health sector continues explosive growth in 2016 as it realizes a 48% year-to-date increase over all of 2015. The Medical Alley biopharmaceutical sector recorded 2016 YTD investments of $14.5M; diagnostics raised $5.1M; and the research tools sector captured $5.2M in investment.
“CVRx’s unique growth path and continued success in raising capital has been significantly influenced by the value of being in Minnesota’s Medical Alley. Investors know Medical Alley and its unparalleled medical technology expertise,” said Rob Kieval, chief development officer and Medical Alley board chair.
Key findings from the Q3 Investment Report include:
- $117M raised in Q3 bringing the 2016 total to $335.8M, a Q1-Q3 record high
- 77 companies have completed a capital raise in 2016 thus far, equaling 2015 Q1-Q3
- Medical device led health technology investments in Q3 adding $102.4M which brought YTD funding for the sector to $201.6M
- Digital health accounts for 31% of investment dollars YTD; the 2016 funding total is $104.3M, 48% higher than entirety of 2015
- Major raises include Torax Medical ($25M), Cogentix Medical ($25M), Osprey Medical ($21M), and Rotation Medical ($8M)
“Medical Alley continues to attract capital and new investors. As other regions experience investment declines in health technology funding, our leadership and expertise is producing consistent record-breaking performance,” commented Shaye Mandle, president and CEO of the Medical Alley Association.
Mr. Mandle went on to say, “In particular, Medical Alley’s digital health community is setting the standards for the evolution of health care. With our deep health care expertise and #1 ranking in innovation, investors are aggressively targeting this market.”
To view the full report and interact with the data, visit: bit.ly/MAAQ3
About Medical Alley Association investment reports
Medical
Alley Association’s investment reports provide detailed analyses of
fundraising done by Minnesota-based health technology (drug, device,
diagnostic and digital health) companies. As a summation of development
capital from all sources including angel, strategic, venture and debt,
it is widely recognized as the most complete analysis of health
technology investment in Minnesota. Medical Alley investment reports
provide market intelligence and insight on local investment trends
relevant to the broader industry.
About the Medical Alley Association
The Medical Alley
Association is a global leader in industry advocacy, stakeholder
connectivity and content delivery which help power the evolution of
healthcare in supporting members so they may innovate, succeed and
influence the global community. By driving policy, delivering actionable
intelligence and connecting members with critical resources, we work to
ensure that Minnesota's Medical Alley remains the world's strongest
health technology community. The Association's membership and supporting
community extends throughout the world, employing more than 300,000
Minnesotans and many more globally. For more information, visit www.medicalalley.org.
Contacts
Medical Alley Association
Tess Donahue, 952-412-9336
Vice
President