Health care startups in Cleveland won about $80 million in equity investment during the first six months of 2013, according to the latest report by BioEnteprise.
That money went to 27 new companies that focus on creating medical devices, therapies and health information technology. And Aram Nerpouni , president of BioEnterpise, says Cleveland can expect more money and more companies in the coming years.
"There is enough critical mass here. That mix of entrepreneurs, institutions, research collaborators and now beginning to have the physical assets in place that this is something that we're going to be able to not only maintain but grow over time.," Nerpouni says.
Investment in Cleveland during the first half of the year is up three-fold compared to the same six month period in 2009. Deb Hoover, who chairs Northeast Ohio's business network Fund For Our Economic Future, says the trajectory is part of the region's long-term plan.
One other note out of this report: This is the second year in a row that Cleveland has beat Minneapolis - the longtime Midwest champion of health care investments. Other cities Cleveland topped during the first six months of this year include Chicago, Pittsburg, and Cincinnati.
Cleveland’s Burgeoning Health Care Industry
Cleveland has led the Midwest in healthcare venture investment the past two years. A look at the first half of each of the past five years shows an overall trend of rising investment.
Cleveland investments for the six months of each year:
| First half of each year | Investment $ | # of deals |
|---|---|---|
| 2013 | $79.1 million | 27 |
| 2012 | $104.1 million | 34 |
| 2011 | $50.2 million | 18 |
| 2010 | $36.7 million | 17 |
| 2009 | $30.5 million | 17 |