Q3 2015 Health Technology Investment Activity Shows Refilling of Minnesota's Pipeline, Increased Sector Diversification
Minnesota's health technology companies - medical device, pharmaceutical/biologics, diagnostics and digital health - raised $72.6 million in Q3 2015, bringing the year-to-date total for 2015 investing to $230.6 million. Led by a record high number of early stage investments, as well as growth in the diagnostics and digital health sectors, this quarter's activity catapulted total investment since 2009 just past the $2 billion mark. View the full report to see notable raises over the past seven years. (link)
Of note this quarter, EnteroMedics raised $16 million, Amphora Medical raised $6.1 million and AUM Cardiovascular raised $5.6 million. The total number of companies raising money in Q3 2015 doubled from 18 to 36 over the comparable quarter in 2014. While medical device led the charge with 16 companies, digital health saw seven companies raising money, up from two companies in Q3 2014.
The big story this quarter was the increased investment activity in diagnostics. Five companies, including Ativa Medical and AUM Cardiovascular, raised a total of $21.5 million, reaching a seven year peak for the sector. In fact, cumulative investments in diagnostics from Q1 to Q3 2015 posted a 166% increase over total 2014 activity.
Q3 also saw a refilling of the pipeline with 24 companies raising early stage investments (up to $1 million), the largest amount since 2012. At $0.5 million, median investment size was down from $0.82 million in Q2 2014, underscoring the increase in early stage activity.
Stay tuned for our annual investment activity report in January which will capture Q4 highlights and analysis of calendar year 2015 investments.
Thank you to Square 1 Bank for their support of our Health Technology Investment report.
View full report