Midwest healthcare companies attracted $2.5 billion in new equity investments in 2017, according to the BioEnterprise Midwest Healthcare Growth Capital Report. For the first time in history, the Healthcare Software and Services sector took the lead with $1.2 billion, or 47 percent.

BioEnterprise Year End 2017 Midwest Healthcare Growth Capital Report (Graphic: Business Wire)

"Midwest healthcare companies continue to perform at recording breaking levels," said Aram Nerpouni, president and CEO of BioEnterprise. "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."

• 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;
• Cincinnati-based PatientPoint secured a $140 million raise.

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%)
• Biotech and Pharmaceutical companies: $710 million (29%)
• Medical Device companies: $587 million (24%)

The Midwest Healthcare Growth Capital Investment Report is funded, in part, by The Fund For Our Economic Future, the Cleveland Foundation and the Burton D. Morgan Foundation.

About BioEnterprise

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. Additional technology partners include the NASA Glenn Research Center, Cleveland State University and BioOhio. The initiative comprises the collective activities of BioEnterprise and its partners’ commercialization offices: The Case Office of Technology Transfer, Cleveland Clinic Innovations, and University Hospitals Cleveland – Center for Clinical Research. Since 2002, BioEnterprise and its partners have created, recruited and accelerated more than 350 health IT, biomedical, and biopharmaceutical companies, and have helped these companies raise more than $2 billion in new funding.