Minnesota's Companies Have 2nd Highest Q2 in 6 Years, Digital Health Sees 239% Increase in Investments
The numbers are in and by all accounts, 2015 is shaping up to be a very good year for Minnesota's health technology startups. With $116.4 million invested in 39 companies in Q2 alone, Minnesota's industry had the second highest Q2 in the last six years, second only to 2014, which was an unprecedented high-water mark. Total investment year-to-date in 2015 now comes to $164.5 million, also the second highest amount since 2010.
The device sector performed well, drawing $57.2 million to 18 companies, besting the 14 device companies raising money in Q2 2014. More seed and early stage investments were seen, feeding an increase in the percentage of both $1-$3 million and $3-$7 million raises. However, the big story for this quarter is digital health.
Eleven digital health companies attracted $36.3 million in investment, up 239% from Q2 2014. This includes a $20 million raise by industry newcomer Novu, as well as $12.5 million for Gravie. The rise in activity continues a growth trend of Medical Alley's burgeoning digital health sector, which runs the gamut from wearables to patient engagement to health system management platforms.
The pharmaceutical sector also performed well, bringing in $21 million, up 262% compared to Q2 2014. This was bolstered by $16.6 million invested in Minnesota Medical Solutions.
Overall, Minnesota's health technology companies had a strong showing in Q2, continuing an increasing trend that began in 2009, in concert with growing diversification in the allocation of funds among health technology sectors.