A huge third quarter has helped Minnesota's health care startups raise more than $1 billion so far in 2020, according to a new report from the Medical Alley Association.
Fifty-eight of the state's health care-focused startups have raised $1.02 billion in 2020, with $759.3 million coming in the third quarter. That's the health care ecosystem's second strongest year-to-date total in the past decade. Digital health startups have raised the most money so far this year, with $658.6 million. They're trailed by medical-device startups, which have raised $315 million.
The quarter (and year) was led by Minneapolis-based insurance startup Bright Health's $500 million Series E. Bright, which also had 2019's biggest investment with a $635 million Series D round, has now raised over $1.5 billion since it was founded.
Another major money raiser of the quarter was Eagan-based Preventice Solutions, which raised a $137 million Series B in July. Preventice makes remote heart-monitoring devices and has offices in Eagan, Rochester, and Houston. The company will use the funds to expand its sales team.
Other standout raises were heart-failure device maker CVRx's $50 million raise in July and heart-valve-repair device maker Cardiomech's $18.5 million Series A. CVRx has now raised about $390 million bringing its Barostim Neo device to market, while Cardiomech is currently pre-commercial.
The Medical Alley Association is a non-profit organization that supports Minnesota's health care economy through research and sponsoring events.
"During this pandemic, Medical Alley has been answering the call, delivering on our leadership position as the global epicenter of health innovation and care," said Shaye Mandle, president and CEO of the Medical Alley Association, in a statement.
