IBJNews

Health firms still attracting venture capital

Back to TopCommentsE-mailPrintBookmark and Share

The uncertainty of health care reform and a bad economy curtailed venture capital flow in 2009. That trend hit Indianapolis, but the rest of the state actually saw an increase.

In 14 deals, Hoosier companies pulled in a total of $76.3 million last year, a 1-percent increase over total investments in 2008, according to data released last week by BioEnterprise, a Cleveland-based life sciences development group.

The year before, only seven health care companies in Indiana scored venture capital, but they averaged larger amounts of capital: $10.8 million per deal. In 2009, average investments fell by half to $5.45 million per deal.

Around the Midwest, venture investing in health care companies fell 26 percent to $780 million, according to BioEnterprise. The declines were similar nationally, according to an annual study by the National Venture Capital Association and PricewaterhouseCoopers.

"This was a difficult year for emerging health care ventures in the Midwest and nationally," said Baiju R. Shah, CEO of BioEnterprise. "The global recession combined with the industry uncertainties related to U.S. health care reform dampened investment."

Indianapolis, however, suffered even more. Companies in the metro area attracted $41.2 million last year—44 percent less than the year before. The number of deals rose from six to nine.

Two of those deals went to one company, Nico Corp., a medical device maker that secured a total of $11.8 million in a second round and series B round of financing.

Picking up Indianapolis’ slack was Endocyte, the West Lafayette-based cancer drug developer. It raised $26 million in a series C round.

Two other West Lafayette companies—Matrix-Bio and Kylin Therapeutics—pulled in small amounts of venture capital.

Also, Evansville-based Achieve CCA, a medical debt management company, raised $5 million in its first round of financing.

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
  1. Again, Maria.... how much are YOU contributing? The man doesn't HAVE to give a red cent! What don't you get about that? And, I know this might actually require some actual "facts", but can you please point me to the parking garage that the city gave to him?

  2. Another internet tuff guy I see. And what would the basis of taking the person to jail? If they were drunk, yea. But if not, there would be no jailable offense. All these gestapo, Nazi, jackboots are running SCARED. When the SHTF in this country who's side are you going to be on? The citzens, or the establishment? Better make up your mind quick because it's not far off. I would rather be trying to make friends than enemies. But no worries my "friend", God will take care of you and your likes in good time. It tells us that in the bible. If you stand, support and help carry out the plans of evil rulers, you will NOT be spared the wrath of God. That simple. All you can do is repent now and ask God to forgive you.

  3. Yes, Ersal, thank you for donating a whole $75,000, while the city gives you a parking garage for free and is going to pay for a multi million dollar stadium for you. I'd be donating money too if I was on welfare.

  4. I live and work in Broad Ripple and agree 100% that the traffic is not a significant problem. It can be slow at some times, but hey...this is an urban area. As for the development itself...HOORAY. Office and retail development brings people during the day, something that our community needs much more of. Thank goodness people are finally waking up to take advantage of the serene White River views. The BRVA land us committee endorsed the project because they know how these kind of projects help offset the cries of "too many bars". Pray that this development, and the proposed major investment by Browning, move forward. And remember Good Earth, these will mean hundreds of daytime people - potential shoppers for your store.

  5. Under current, previous existing law, this new law would be unconstitutional. Not that supposedly having to have a driver's license to drive isn't in the first place.

ADVERTISEMENT