21 Jan Wisconsin fares poorly in Midwest healthcare capital chase
Cleveland, Ohio – Led by the states of Minnesota and Ohio, Midwest healthcare start ups attracted a record $1.2 billion in new investments in 2007, but Wisconsin finished near the bottom among the states that were reviewed, according to the Midwest Health Care Venture Investment Report released by BioEnterprise.
The overall total represents a 55 percent increase over 2006, a sharp rise that both outpaces national venture industry growth and even surpasses the 25 percent increase that occurred in the previous year.
But that growing pipeline of investors favored Minnesota and Ohio, who raised $296.1 million and $295.5 million, respectively, in 2007. However, Ohio reported more transactions than Minnesota, 44 compared to 25.
Wisconsin ranked near the bottom, with $56.2 million and 12 transactions, ahead of only Kentucky and tied with Michigan.
By sector, the equity funding was allocated as follows:
• Biopharmaceutical companies: $687 million (56 percent).
• Medical device companies: $329 million (27 percent).
• Healthcare software and service companies: $208 million (17 percent).
The year saw several high-profile public biopharmaceutical offerings, including TomoTherapy, a Madison-based medical device manufacturer.
The Midwest Health Care Venture Investment Report aggregates venture investment in 10 Midwest states and Western Pennsylvania and includes all reported numbers.
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