Minnesota medical device startups got a big boost in funding in the 2nd quarter of 2014, with 134% more money invested than during the same period last year, according to a new report.
The numbers suggest greater interest in early-stage deals, according to LifeScience Alley, the North Star State’s medical device and life sciences lobbying group.
Funding increased in general for Minnesota’s life sciences groups, but medical devices took the lion’s share. Medtech startups accounted for just 45% of the number of companies funded, but collected 81% of the life sciences investments for the quarter, according to the report.
A total of 12 medical device companies raised $89 million in Q2 2014, compared with 23 companies raising $38 million during the same period last year. The recent funding was driven largely by 2 big raises: $42 million for Holaira and its lung denervation technology and $40 million for Inspire Medical and its sleep apnea implant.
The total life sciences field saw investments totaling $110.5 million during the quarter, a 65% increase over last year. About 71% of the deals closed were under $1 million, with the median raise coming in at $389,000, up 41% year-over-year.