Report: Midwest Healthcare Companies Attracted $2.5B in Investments in 2017 | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Report: Midwest Healthcare Companies Attracted $2.5B in Investments in 2017

March 23, 2018
by Heather Landi
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Midwest healthcare companies attracted $2.5 billion in new equity investments in 2017, a 38 percent increase over 2016, according to the BioEnterprise Midwest Healthcare Growth Capital Report.

For the first time since the study began in 2005, healthcare software and services sector took the lead with $1.2 billion, or 47 percent of funding.

The Midwest Healthcare Growth Capital Report compiles data from Pitchbook, SEC Filings, company press releases, news items and regional Midwest organizations. The report details investments in three biomedical sectors: medical device, biotechnology and pharmaceuticals, and healthcare IT/software and services.

Last year, Outcome Health, a Chicago health IT and software services company, reported a $500 million deal—the largest fundraise in the Midwest and the largest single raise in the report’s history. Minneapolis had the second largest raise, $160 million by Bright Health, and Cincinnati-based PatientPoint secured a $140 million raise.

According to the report, Illinois ($866 million), Minnesota ($561 million) and Ohio ($497 million) led Midwestern states in attracting investment dollars. Chicago ($854 million), Minneapolis ($553 million), Cincinnati ($222 million) and Cleveland ($218 million) were the leaders in the Midwest regions.

By sector, the 2017 growth capital funding was invested as follows: Healthcare IT and Software and Services companies: $1.2 billion (47 percent); Biotech and Pharmaceutical companies: $710 million (29 percent); and Medical Device companies: $587 million (24 percent)

“Midwest healthcare companies continue to perform at recording breaking levels,” Aram Nerpouni, president and CEO of BioEnterprise, said in a statement. “The investment total is the largest to date; a 38 percent increase over 2016. A few large healthcare IT and software services investments put the Healthcare Software and Services sector well above the Biotech and Device sectors.”

BioEnterprise is a business formation, recruitment, and acceleration effort designed to support the growth of bioscience companies. Located in Cleveland, BioEnterprise provides management counsel and support services to health IT, medical device, and biopharmaceutical companies. BioEnterprise founders are Case Western Reserve University, Cleveland Clinic, and University Hospitals.

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