IBJNews

Health care VC slows in 2011

Back to TopCommentsE-mailPrintBookmark and Share

The number of deals and dollars invested by venture capitalists in Hoosier health care companies declined during the first half of the year, according to the latest data from Cleveland-based BioEnterprise.

Four companies attracted more than $10.5 million, according to BioEnterprise, which promotes the growth of life sciences companies in the Cleveland area.

Those results were down from 10 companies that attracted $18.5 million during the first half of 2010.

Indiana is part of a larger trend in which life sciences firms have increasingly found their next round of financing from a larger health care company, rather than from institutional investors.

“While the number of companies funded remains high and similar to prior years, the total dollars invested is down compared to recent years,” Baiju Shah, CEO of BioEnterprise, said in a prepared statement. “This is related to the significant increase in company M&A activity across the Midwest as growth-stage health care firms are increasingly being purchased in strategic transactions rather than pursuing additional financing.”

Across the Midwest, 86 companies have attracted $315 million in venture funding this year, compared with 75 companies that pulled in $412 million during the first half a year ago.

In Indiana, Carmel-based Dormir Inc. attracted $2 million in February to help its roll-up of sleep centers. Also, Indianapolis-based Wellfount Corp. received $6 million from Arboretum Ventures to help it install remotely controlled drug-dispensing machines in nursing homes around the country. And Fort Wayne-based BioPoly LLC secured $2.5 million to bring new orthopedic products to market.

Indiana’s numbers are somewhat low because Indianapolis-based BioCritica, which is licensing the severe sepsis drug Xigris from Eli Lilly and Co., also attracted venture capital, but the amount has not been disclosed.

To see the BioEnterprise report, go here.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT