5:32 am by Scott Wooldridge
Investment in Minnesota life science companies saw a significant increase in the second quarter of 2014, according to a report from the state’s largest med-tech association.
The Minnesota Life Science Investing Report, Q2 2014, finds a 65% increase in life science investments over the second quarter in 2013, with companies raising $110.5 million in 2Q, up from $75 million in the first quarter of this year. The report is released on a quarterly basis by LifeScience Alley, Minnesota’s trade association for med-tech and life science businesses.
According to Cheryl Matter, PhD, director of research and intelligence with LifeScience Alley, the numbers show continuing improvement in the med-tech investment area for this year.
“2014 looks like it’s going really well, and we’re on pace to exceed what happened in 2013,” she said. “Two major [deals] are driving the majority of this, and that’s Holaira and Inspire Medical.”
Holaira is a Plymouth, Minn.-based company that closed a $42 million venture financing round in April. The company is developing a catheter-based system for treating chronic obstructive pulmonary disease. Inspire Medical, based in Maple Grove, Minn., completed a Series E financing round that raised $40 million in May. The company is developing a small, implantable system that treats sleep apnea. Their device completed a medical trial at 22 medical centers in January of this year.
Health information technology companies also saw good numbers, led by Red Brick Health, based in Minneapolis, which raised $7.5 million in 2014’s second quarter.
Aside from the bigger names and deals, Matter said that it’s the smaller ventures bubbling up from underneath that indicate a healthy future for the industry, especially in med-tech.