Investors pumped a record $227.4 million into medical device and digital health companies in Minnesota so far this year, according to a report from industry group Medical Alley.
Some 64 companies raised capital in the North Star State during the 1st half of 2016, according to the report, eclipsing the $213 million drummed up in 2009. Medical device companies raised $102.9 million, the most of any sector in the report, followed closely by the $102.1 million raised by digital health companies.
In fact, digital health firms have grown strongly in Minnesota over the past 4 years, rising nearly 455% from the $18.4 million in 2012, according to the report. Pharma and biotech firms raised $9.9 million during the period, followed by the diagnostics industry at $6.6 million. Firms making research tools pulled down $1.2 million, with other healthcare categories raising $4.7 million, according to Medical Alley.
“It is exciting to see Minnesota maintain a leadership role in historically strong industries like medical device while also making huge advances in digital health and emerging specialties,” said Cheryl Matter, vice president of intelligence & research at the Medical Alley Assn., in prepared remarks. “Based on the tremendous level of health technology talent and experience here, coupled with anchor organizations like Wolters Kluwer and Optum, Minnesota is in a unique position to attract and support the future of digital health.”
“Minnesota’s Medical Alley region is only as good as its parts. As newer sectors gain strength – the whole gets stronger,” added president & CEO Shaye Mandle. “There is a misperception in Minnesota that it is a flyover state for investors, the numbers tell a far different story – the money is coming here.”