Mar 23, 2017, 5:21 PM
Local med-tech VC funding isn’t following the broader industry trends.
Medical technology in Minneapolis reads like a who’s who list of the industry. Firms like Medtronic, St. Jude Medical and Boston Scientific all call the area home, forming a “Medical Alley” in between St. Cloud, the Twin Cities and Rochester.
And industry investment doesn’t show any signs of slowing down.
Last year, medical device venture capital funding ranked second nationally at $79.5 million—a 296% year-over-year jump for all VC funding types (from Q3 2015 – Q3 2016)—with all of it going towards later stage companies or expansion.
But the majority of these new dollars aren’t going to where you might think.
81% is headed to medical device companies that sit in the suburbs (as of Q4 2016). That bucks a trend set by the rest of tech through its wave of relocations into the CBD.
Map: Minneapolis-St. Paul's largest med-tech employers
The bigger suburban footprint is a major draw for device research and manufacturing that requires more space.
And nearly every suburban submarket with a high concentration of med-tech firms already has its cornerstone tenant. Northwest has Boston Scientific, Northeast, Medtronic and Southwest, Starkey. These continue to be a magnet for attracting further suppliers and partners to the area that support industry growth.
Research: Carolyn Bates/Tyler Hegwood | Editor: Michael Cronin