Ohio leads in health care venture capital firms
Monday, May 19, 2008
CLEVELAND — Ohio has the most venture capital firms for health care of any state between the coasts and ranks fourth overall behind California, Massachusetts and New York, according to an analysis by BioEnterprise, self-described "health care accelerator" in Cleveland.
The 27 venture firms with health care as a focus and Ohio offices put the state ahead of Pennsylvania (24), Illinois (19), Minnesota (17), and North Carolina (11), for example.
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Ohio bioscience companies attracted venture investments of $296 million in 2007, said Baiju R. Shah, president & CEO of BioEnterprise.
"Over the last five years, Ohio has seen a significant increase in health care venture capital," Shah said. "The State of Ohio's $1.6 billion technology investment program (Third Frontier Program) has propelled Ohio to become a national leader in health care innovation."
The Third Frontier Program was established in 2002 with 10 years of funding to expand high-tech research. Its comprehensive approach to stimulating health care innovation has included investments in translational research, entrepreneurial infrastructure, and venture capital formation programs. The Ohio Capital Fund and the Ohio-Midwest Fund, which combined total $250 million, are the two largest initiatives designed to grow and attract venture capital firms in the state.
BioEnterprise conducted the state-by-state analysis last week by reviewing Dow Jones Venture Source information as well as state and regional venture association Web sites. The numbers do not include angel, seed, or pure private equity funds.
The Cleveland company helps support the growth of bioscience companies giving management counsel and support services to health care companies, partnering with Case Western Reserve University, Cleveland Clinic, University Hospitals and Summa Health System. More info is at www.bioenterprise.com.
— Kevin Lamb, Staff Writer
