Minnesota's healthcare-connected startups are having a particularly busy summer.
In the first half of 2017, startups across the state in all industries reported raising more than $290M in capital from 14 deals. That’s compared to $340M from 23 total transactions last year. This is due in part to Bright Health's record-breaking $160M venture capital funding last month, likely the largest in Minnesota history.
It's also worth noting that as enrollment season approaches, political uncertainty surrounding healthcare hasn’t deterred venture capitalists from backing health tech or insurance related startups like Gravie.
Here is our collection of Minnesota companies that IPO-ed, received funding or were acquired in July.
Angel Investments, Venture Capital and Private Equity Funding 4C Medical Technologies, a med tech company based in Brooklyn Park, landed $9M in capital for a trial studying its heart-disease device. Canadian angel group Anges Québec invested $3.5M. Friends and family contributed the rest, according to the company's CEO.
Amphora Medical Inc., a Twin Cities-based company developing a device to treat overactive bladder, closed a $35.5M round of funding. Longitude Capital and Boston Scientific led the round. Amphora said that the funds will go toward a clinical study testing whether the device can effectively treat overactive bladder in women. The company launched in 2011, and closed a $12.5M Series A in 2015.
Ativa, a St. Paul-based medical device startup that developed a "micro lab," is seeking $20M in capital. The company's micro lab runs blood tests at patients' bedsides. Ativa previously raised $9.5 in equity financing from two investors. It also closed out a $2.3M round two years ago.
Coral Group, a Minneapolis-based venture capital firm, received $200M in capital from AT&T. Through this new partnership, the firm and telecom giant plan to back tech companies developing "connected services and platforms," specifically those using the Open Network Automation Platform, an operating system for managing computer networks. Coral hasn't been an active investor in Twin Cities startups in recent years, but has previously backed Minnesota companies Optical Solutions and Authorware. It is the fifth-largest venture capital firm in the state.
CoreBiome, a biotech startup backed by health-tech accelerator University Enterprise Laboratories, has raised $800K in funding, per an SEC filing. CoreBiome uses Big Data to provide gene analysis that the company claims is quick, accurate and affordable.
Conservis Corp., a developer of farm-management software, closed on $9.5M in debt financing as it makes inroads into the market for almonds and other tree nuts. Three years ago, Conservis raised $10M in venture capital in a round led by Chicago-based Cultivian Sandbox Ventures.
Gravie, a Minneapolis-based company that helps employees of small and mid-size businesses buy individual health plans, raised a $14M round of funding. The company said it plans to put the fresh round of funding toward marketing and product development.
Loup Ventures, a Minneapolis-based, early-stage VC firm focused on artificial intelligence and virtual reality, is raising $20M for its debut fund, according to an SEC filing. One of the firm's partners is Gene Munster, an ex-Piper Jaffray analyst known for his coverage of Apple.
Acquisitions Spyder Trap, a digital-marketing agency, was sold to Bright Health for an undisclosed amount. As part of the deal, Spyder Trap's CEO, Mike Rynchek, was appointed CTO of Bright Health. 30 other Spyder Trap employees also joined the company. The acquisition is Bright Health's first since it raised a record-breaking $160M in June.
IPO Calyxt, a New Brighton-based company specializing in gene-editing agriculture, became Minnesota’s newest public company after ringing the opening bell at Nasdaq July 19. Calyxt priced 7 million shares at $8 each, and raised about $56M. This offering price was on the lower end of their recently revised range $8 to $10 per share. The company previously reported an expected $15 to $18 per share. The company started selling as CLXT. It’s being underwritten by Citi, Credit Suisse and Jefferies. The company is backed by French biotech company, Cellectis.
