Medical Alley Companies Raise Record $227 Million of Investment Capital in First Half of Year

Minnesota continues reign as a health technology innovation and financial investment hub, reporting a breakthrough year for the digital health sector.

Detailed in the Medical Alley Association’s Q2 Quarterly Investment Report published today, the start of 2016 represents record investment in health technology in Minnesota, raising $227 million in the first half of the year. The previous record was $213 million raised in 2009. The growth in the digital health sector was particularly strong, up from $18.4 million in 2012 to more than $101 million in 2016, and points toward the growing strength of the industry in Minnesota.
 
“It is exciting to see Minnesota maintain a leadership role in historically strong industries like medical device while also making huge advances in digital health and emerging specialties,” said Cheryl Matter, Ph.D., vice president of intelligence and research with the Medical Alley Association. “Based on the tremendous level of health technology talent and experience here, coupled with anchor organizations like Wolters Kluwer and Optum, Minnesota is in a unique position to attract and support the future of digital health.”
 
Key findings in the Q2 report include:
 

• In the first half of the year, Minnesota companies raised over $227 million; the second quarter alone represented $174 million in capital investment.
• A total of 64 companies have completed a capital raise thus far in 2016.
• Digital health sector leads Q2 for investment total for first time ever, with more than $101 million invested in 2016. Half of the companies raised $1 million or more.
• Medical device companies continue to generate impressive investment with more than $102 million in the first half of the year; this total is the second highest half in the last five years.
• “Minnesota’s Medical Alley region is only as good as its parts. As newer sectors gain strength—the whole gets stronger,” commented Shaye Mandle, president and CEO of the Medical Alley Association. “There is a misperception in Minnesota that it is a flyover state for investors, the numbers tell a far different story—the money is coming here.”
   

The Medical Alley Association is a provider of industry advocacy, stakeholder connectivity and content delivery which help power the evolution of healthcare in supporting members so they may innovate, succeed and influence the global community. By driving policy, delivering actionable intelligence and connecting members with critical resources, the organization works to ensure that Minnesota’s Medical Alley remains the world’s strongest health technology community. The Golden Valley, Minn.-based association’s membership and supporting community extends throughout the world, employing more than 300,000 Minnesotans and many more globally.