Business Wire10.20.16
Minnesota’s health technology sectors continue to secure unprecedented investment with a total raise of nearly $336 million through the year's first three quarters. The 2016 year-to-date 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, according to experts.
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 third-quarter total of $102.4 million. So far this year, 33 device companies have raised $201.6 million. Major sector raises were led by Torax Medical and Cogentix Medical, both at $25 million.
Other notable raises include Osprey Medical ($21 million), CVRx ($11.2 million) and Rotation Medical ($8 million).
The digital health sector continues explosive growth in 2016 as it realizes a 48 percent year-to-date increase over all of 2015. The Medical Alley biopharmaceutical sector recorded 2016 year-to-date investments of $14.5 million; diagnostics raised $5.1 million; and the research tools sector captured $5.2 million in investment.
“CVRx’s growth path and success in raising capital has been influenced by the value of being in Minnesota’s Medical Alley. Investors know Medical Alley and its medical technology expertise,” said Rob Kieval, chief development officer and Medical Alley board chair.
Key findings from the Q3 Investment Report include:
“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. “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.”
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. The organization works 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.
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 third-quarter total of $102.4 million. So far this year, 33 device companies have raised $201.6 million. Major sector raises were led by Torax Medical and Cogentix Medical, both at $25 million.
Other notable raises include Osprey Medical ($21 million), CVRx ($11.2 million) and Rotation Medical ($8 million).
The digital health sector continues explosive growth in 2016 as it realizes a 48 percent year-to-date increase over all of 2015. The Medical Alley biopharmaceutical sector recorded 2016 year-to-date investments of $14.5 million; diagnostics raised $5.1 million; and the research tools sector captured $5.2 million in investment.
“CVRx’s growth path and success in raising capital has been influenced by the value of being in Minnesota’s Medical Alley. Investors know Medical Alley and its medical technology expertise,” said Rob Kieval, chief development officer and Medical Alley board chair.
Key findings from the Q3 Investment Report include:
- $117 million raised in the third quarter, bringing the 2016 total to $335.8 million, a first- to third-quarter record high
- Seventy-seven companies have completed a capital raise in 2016 thus far, equaling 2015's first three quarters
- Medical device led health technology investments in the third quarter, adding $102.4 million, which brought year-to-date funding for the sector to $201.6 million
- Digital health accounts for 31 percent of investment dollars this far in 2016; this year's funding total is $104.3 million, 48 percent higher than 2015's total
“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. “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.”
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. The organization works 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.