Venture capital firms triple investment in Cleveland Plus bioscience industry

1/21/2008

Health care startups in Northeast Ohio raised nearly three times as much money from venture capitalists last year as they did in 2006, according to a report by BioEnterprise, the region's bioscience company developer.

Companies in Greater Cleveland raised $241.8 million in venture capital last year compared with $87.9 million in the prior year.

A few large deals, such as the $65 million reverse initial public offering by Cleveland biopharmaceutical company Athersys Inc., went a long way to pump up the region's 2007 total. But the number of deals also went up in 2007 - to 28 from 23 in 2006.

Health care companies in the 11 Midwestern states and one region that BioEnterprise tracks with its quarterly and annual surveys attracted a record $1.2 billion from venture capital firms last year. That was up 55 percent from 2006, surpassing a respectable 25 percent increase in the previous year, according to BioEnterprise.

Among the states and region, Minnesota and Ohio tied for first place by attracting $296 million apiece last year. Next was Indiana with $135.6 million, Illinois with $125.5 million, and Western Pennsylvania with $101.4 million.

In terms of metropolitan areas, Minneapolis continued its leadership with $296.1 million, followed by Cleveland. Chicago companies raised $125.5 million, Indianapolis companies, $113.6 million; and Pittsburgh companies, $101.4 million

Mary Vanac - Cleveland Plain Dealer

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