Report shows health care startups big business in Midwest

CLEVELAND According to the Midwest Health Care Venture Investment Report, Midwest health care startups attracted a record $1.2 billion in new investments in 2007, a 55 percent increase over 2006.

By sector, the equity funding was allocated as follows: Biopharmaceutical companies: $687 million (56 percent); Medical device companies: $329 million (27 percent); Health care software and service companies: $208 million (17 percent). Minnesota and Ohio led all Midwestern states with $296 million attracted each.

“While the Midwest is known nationally for its high-quality medical devices, the data indicates that investors have discovered that the Midwest also is rich in high-quality biopharmaceutical start-ups,” said Baiju Shah, president of BioEnterprise, who released the report.

“The region has always had rich bioscience resources including world-renowned research institutions and a broad industry base,” said Shah. “That potential is finally being translated, through investments in translational research, new capital sources, and professional technology development groups, into a series of high-growth bioscience ventures. The economic future of the Midwest includes a vibrant and dominant bioscience industry.”