Medical device companies took in the largest chunk of money, raising $696 million, or 40.3% of the total. But much of the funding boost came from health IT and software and services companies, which were a close second with $679 million raised, or 39.3%.
Minnesota—which has one of the largest medical device hubs in the United States and is home to Mayo Clinic and UnitedHealthcare—had the greatest share of the money raised: $424 million. Illinois came in second with $327 million—with $200 million of the total going to Accretive Health, which provides revenue cycle management to hospitals. Ohio was third with $291 million.
“Midwest healthcare continues to perform at historic levels,” Aram Nerpouni, president and CEO of Cleveland-based BioEnterprise, said in a news release. “From 2015 to 2016 we saw an 11% increase in investment and an 19% increase in companies raising that investment. Within the past five years (2011-2016), the number of companies raising money, and the amount raised, has more than doubled.”