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. Really, taking someone managing the regulation of Alcohol and making himthe President of an IVY Tech regional campus. Does he have an education background?

  2. Jan, great rant. Now how about you review the report and offer rebuttal of the memo. This might be more conducive to civil discourse than a wild rant with no supporting facts. Perhaps some links to support your assertions would be helpful

  3. I've lived in Indianapolis my whole and been to the track 3 times. Once for a Brickyard, once last year on a practice day for Indy 500, and once when I was a high school student to pick up trash for community service. In the past 11 years, I would say while the IMS is a great venue, there are some upgrades that would show that it's changing with the times, just like the city is. First, take out the bleachers and put in individual seats. Kentucky Motor Speedway has individual seats and they look cool. Fix up the restrooms. Add wi-fi. Like others have suggested, look at bringing in concerts leading up to events. Don't just stick with the country music genre. Pop music would work well too I believe. This will attract more young celebrities to the Indy 500 like the kind that go to the Kentucky Derby. Work with Indy Go to increase the frequency of the bus route to the track during high end events. That way people have other options than worrying about where to park and paying for parking. Then after all of this, look at getting night lights. I think the aforementioned strategies are more necessary than night racing at this point in time.

  4. Talking about congestion ANYWHERE in Indianapolis is absolutely laughable. Sure you may have to wait in 5 minutes of traffic to travel down BR avenue during *peak* times. But that is absolutely nothing compared to actual big cities. Indy is way too suburban to have actual congestion problems. So please, never bring up "congestion" as an excuse to avoid development in Indianapolis. If anything, we could use a little more.

  5. Oh wait. Never mind.

ADVERTISEMENT