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Health firms still attracting venture capital

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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.

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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