LifeScience Alley announces today that 86 Minnesota-based companies within the life science industry collectively raised $430.4 million in 2014, representing the highest level of investment activity in the industry since 2009. Investments in Minnesota’s medical device sector reached a six year high at $322 million, a 6.3% increase over 2013.
“2014 was a record year for all life science investing activity and within many of the individual sectors we cover,” said Cheryl Matter, PhD, director of intelligence and research for LifeScience Alley. “The data and increasing trends over the last six years indicate that Minnesota's life science industry is healthy and growing, and that investment opportunities still abound to help these companies."
These findings come from LifeScience Alley’s "Minnesota Life Science Investment Activity" report series, which compiles quarterly data on a variety of investment types from various sources for early-stage and emerging companies in the medical device, pharmaceuticals and biotechnology, health information technology, and diagnostics and research tools sectors.
Total 2014 life science investing was up $81.8 million, a 23% increase over 2013 and a 71% increase over 2012. Although medical device companies attracted record high investment dollars, 2014 saw increased diversification of sectors securing investment, with significant spikes in both the number of companies receiving funds and total dollars invested within the pharmaceuticals/biotechnology and health information technology sectors. Raising $49 million, the pharmaceuticals and biotechnology sector saw a 10-fold increase over 2013 investment levels ($4 million). Minnesota's rapidly growing health information technology sector saw investment levels up 41% over 2013 at $41 million raised, continuing an increasing trend in that space.
Another trend driving investment growth is the increase in companies raising large figures. This year, 17 companies raised $7 million or more (compared to 11 companies in 2013) and 26 companies raised $3 million or more (compared to 22 companies in 2013). The medical device sector accounted for 71% of the companies raising $7 million or more. 2014 also saw the highest median levels of investing activity yet, with a median of $3.9 million in quarter three and $2.4 million in quarter four. For the first time during the years tracked, the fourth quarter saw higher investment levels than the historically strongest third quarter, with $119 million raised, a 17% increase over 2013.
In addition to recording high levels of life science investment activity, 2014 saw more than $1 billion in liquidity events in the life science industry, with transactions in the health information technology sector accounting for approximately $780 million.
About LifeScience Alley
LifeScience Alley is a global leader
in enabling life science business success with a 30-year track record of
delivering results-oriented outcomes. We are committed to leading the
conversation in improving our community’s operating environment and
supporting advancement in research and healthcare innovation. By
influencing proactive policy change, delivering vital information and
intelligence, leading solutions-based initiatives and uniting members
with critical resources, LifeScience Alley works to ensure that
collectively 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. Learn more at www.LifeScienceAlley.org.
