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Medical companies led the way for Minnesota startup funding in May, a month that also included an exit and an IPO. We cover funding news and other tech headlines every day in our newsletter, The Beat. Be sure to sign up to stay on top of the latest startup and innovation news in Minnesota.
Here are eight notable Minnesota startup deals from May:
Ambient Clinical Analytics
- Ambient Clinical Analytics, a healthcare-technology startup that analyzes patient data in real time, has raised $1.1 million in a planned $1.5 million round, according to a regulatory filing. The Rochester-based startup spun out of Mayo Clinic about four years ago, and raised another round of just under $4 million from 38 investors in 2017.
Hidrate Spark
- Hidrate Spark, a startup selling a smart water bottle that synchs to phones and reminds users to stay hydrated, has raised an equity round of more than $2.1 million, according to a regulatory filing. Minneapolis-based Hidrate participated in the Kansas City Techstars program in 2015. The company’s product, HidrateMe, tracks users’ water intake with the goal of keeping them hydrated. The bottle glows to advise its owner when to drink more. Hidrate was founded by a group of University of Minnesota students in 2014, and raised more than $40,000 on Kickstarter not long after its launch.
Gravie
- Healthcare startup Gravie closed on roughly $3.4 million in equity financing. The Minneapolis-based company guides small and mid-sized employers' workers through the process of buying and managing their health coverage. Gravie has raised more than $45 million since its launch five years ago, including a $14.1 million round last summer.
4C Medical Technologies
- Med-tech startup 4C has raised just under $3.1 million in a planned $15 million round, according to a regulatory filing. The Brooklyn Park-based company is developing a device to treat a condition that causes blood to flow backward into the heart. 4C raised $9 million in 2017, ranking No. 15 on the Biz Journal's list of the year's largest venture capital deals.
KeyedIn Solutions
- Business-software company KeyedIn Solutions closed on $15 million in financing to ramp up sales and marketing. KeyedIn launched in 2011 and soon acquired Bloomington-based Datacom International, along with several other businesses. It now sells professional-services and project-management applications. Arrowroot Capital led KeyedIn's Series C round of funding.
Cardionomic Inc.
- Med-tech startup Cardionomic Inc. raised $9 million to further test a medical device that aims to treat heart failure. The New Brighton-based company's technology uses electrical pulses to stimulate nerve branches in the heart. The company is led by former Medtronic executive Steve Goedeke. Three years ago, Cardionomic closed on $20 million in funding.
Inspire Medical Systems
- Inspire Medical Systems, which sells a medical device that treats sleep apnea, raised $108 million through an initial public offering on May 3. The company originally anticipated raising between $70 million to $80 million, but ultimately sold more shares than announced earlier. The Maple Grove-based company, which spun out of Medtronic a decade ago, generated $28.8 million in revenue last year.
Reeher
- Growing tech company Reeher was sold to Blackbaud, a maker of nonprofit-management software, for $43 million, the companies announced on May 1. St. Paul-based Reeher makes software that uses predictive modeling to help colleges and universities identify likely donors. The company is named after Andy Reeher, who founded the business in 2002 and leads it as CEO. Reeher was one of the first businesses to move into Osborn370 earlier this year. Charleston, South Carolina-based Blackbaud said the acquisition will allow it to incorporate more fundraising features into its products. Blackbaud plans to hire Reeher’s Minnesota employees.
