Firms in Minnesota’s Medical Alley raised $117 million during the 3rd quarter, bringing their total year-to-date funding to $335.8 million, the trade group reported today.
Medical Alley, which rebranded from LifeScience Alley in January, reported that 77 companies from the region completed funding rounds in 2016, matching 2015’s numbers between the 1st and 3rd quarters.
“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. 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,” president & CEO Shaye Mandle said in prepared remarks.
Medical device companies brought in a total of $102.4 million in the 3rd quarter, with $201.6 million raised year-to-date. Torax Medical and Cogentix Medical (NSDQ:CGNT) led the funding raises, both bringing in $25 million. Osprey Medical (ASX:OSP) raised $21 million, Rotation Medical brought in $8 million and CVRx pulled in $11.2 million, Medical Alley reported.
“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,” chairman Rob Kieval said in a press release.
Companies in the digital health sector saw a 48% year-to-date increase from 2015, Medical Alley reported, bringing in $104.3 million so far this year. Biopharm companies reported investments of $14.5 million, diagnostics at $5.1 million and the research tools sector reported $5.2 million in investments.
In January, shortly after rebranding, reported that investment in medical device companies in Minnesota topped the $300 million mark for a 3rd year in a row last year.
Medical device outfits led the $434.9 million raised by Minnesota healthcare companies in 2015, according to the report, with $302 million raised. Although that’s down -6.3% from 2014, the number of companies that raised money rose 7.0% to 46 compared with 2014. The median deal size for a Minnesota medtech business last year was $1 million, according to the report.