MINNEAPOLIS--(BUSINESS WIRE)--Minnesota continues to be a hub for health technology innovation and financial investment, with 2016 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 over $101 million in 2016, and points toward the growing strength of that 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.
- 64 companies have completed a capital raise thus far in 2016.
- Digital health sector leads Q2 for investment total for first time ever with over $101 million invested in 2016 with 50 percent of the companies raising $1 million or more.
- Medical device companies continue to generate impressive investment with over $102.85 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.”
To view the full report, visit http://tabsoft.co/29tu1Gb
About Medical Alley Association investment reports
Medical Alley Association’s investment reports provide detailed analyses of fundraising done by Minnesota-based health technology (drug, device, diagnostic and digital health) companies. As a summation of development capital from all sources including angel, strategic, venture and debt, it is widely recognized as the most complete analysis of health technology investment in Minnesota. Medical Alley investment reports provide market intelligence and insight on local investment trends relevant to the broader industry.
About the Medical Alley Association
The Medical Alley Association is a global leader in 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, we work to ensure that Minnesota's Medical Alley remains the world's strongest health technology community. The Association's membership and supporting community extends throughout the world, employing more than 300,000 Minnesotans and many more globally. For more information, visit www.medicalalley.org.