1. Healthcare

47
Innovation
EXITS SINCE 2002
Start-Up Activity
An ever-growing pipeline of funded start-up companies demonstrates
the vibrant biomedical environment in the region. Regional biomedical
companies attract funding from venture capital, private equity,
and strategic sources as well as state and federal programs. The
rich pipeline has drawn the notice of larger strategic firms as shown
by the increasing number of company exits in recent years.
40
43
35
33
31
25
28
22
21
13
16
135
125
68
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2014
2013
2012
2011
2010
2009
2007
2006
2008
companies funded
Source: Midwest Healthcare Growth Capital Report
18
2013
2012
2011
2010
2009
2008
16
20
22
21
25
24
2007
2006
2005
18
20
23
19
2004
2003
15
76
74
72
91
73
72
82
84
21
47
55
68
50
20
25
27
23
19
19
22
23
2000
2001
34
13
15
Clayton Dubilier & Rice/Goldman Sachs
Predictive Biosciences
Hyland Software
Mercer
HealthPro Rehabilitation
Carefx
Edgepark Surgical
Noteworthy Medical
Homecare Collection Services
Theken Spine
NDI Medical (product line)
Whole Health Management
Invacare
Integra LifeSciences
Medtronic
Walgreen
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
companies funded
cleveland
Biomedical
Innovation Destination
OncoDiagnostic Labs
Computer Systems Company
Innovative Process Administration
Therapy Partners
IntellisEPM (product line)
2009 CompuGroup
2005 Nuvasive
RSB Spine (product line)
2004 Merry X-Ray
SourceOne Healthcare Technologies
2003 Enpath Medical
BIOMEC Cardiovascular
Merge Healthcare
RIS Logic
Cardiac Sciences
Complient
2002 GE Medical Systems
St. Jude Medical
Omnicare
2003
2002
2013
2012
2011
2010
2009
2008
2007
2006
2005
2010
Trek Diagnostics
Cleveland BioLabs
3
2004
Amresco
Lexi-Comp
Trek Diagnostic Systems
Intelect Medical
Data Management
Ganeden Biotech (product line)
Cell Targeting
2006 Magellan Biosciences
Initial Public Offering
companies funded
6
7
14
VWR International
Wolters Kluwer
Thermo Fisher Scientific
Boston Scientific
MedData
Schiff Nutrition
BioTime
MemberHealth
Wellcorp
Athersys
USB
BIOMEC
Hygenic Corporation
Over $200 Million and 800 Deals from Regional Tech Transfer
2003
2011
2007 Universal American
Nationwide
Initial Public Offering
Affymetrix
Greatbatch
Cortec Group
Source: National Institutes of Health
2002
Performance Health & Wellness Holdings
OrthoHelix
U.S. Endoscopy
Research Organics
10
2012
2011
14
16
11
2010
2009
2008
2007
13
16
18
2006
13
2005
13
10
2004
2003
Gridiron Capital
Tornier NV
Steris
Sigma-Aldrich
2008
Millions of Dollars
2001
2012
2013
Over $100 Million in SBIR Grants to Regional Start-Ups
2000
Ricerca
ChanTest
Directed Medical Systems
MedData
Simbionix
Bedford Laboratories
50
398
227
203
242
165
171
87
61
2005
32
2004
2003
Millions of Dollars
Source: Association for University Technology Managers
Target
2014 Main Market Partners
Charles River Labs
COMS Interactive
MEDNAX
3D Systems
Hikma Pharmaceuticals
2013 TPG
Envision Pharmaceutical Holdings
Tenex Capital Management Roscoe Medical
Cardinal Health
AssuraMed
Over $2 Billion Invested in 350 Start-up Companies
Millions of Dollars
Acquirer
USA Instruments
Cardiac Assist Devices
NCS Healthcare
700 biomedical companies • 36 Cleveland-area biomedical
investors • $2 billion invested in 350 start-up companies •
47 Exits • 85 national investors in Cleveland companies •
$5.6 billion biomedical sector
This Report is supported by the Fund For Our Economic Future,
the Cleveland Foundation and the Burton D. Morgan Foundation.
bioenterprise.com
216.658.3999
@BioECorp
Linkedin.com/company/bioenterprise
themedicalcapital.com
@MedicalCaptial
36 85
medical capital
Clinical & Research Institutions
Critical Mass
Internationally recognized clinical and research institutions provide the platform for
Cleveland’s biomedical industry. Together these organizations conduct over $713 million
in annual sponsored research and are nationally ranked in all medical specialty areas. The
region’s industry collaborates closely with these institutions to advance innovation.
Cleveland Clinic
Nationally ranked in 13 specialties, including #1 heart
and heart surgery for 20 years in a row; #1 in urology;
#2 in diabetes & endocrinology, rheumatology, and
nephrology*
University Hospitals
Nationally ranked in 12 specialties for third year in
a row, including cancer, ear nose and throat,
gastroenterology and GI surgery, and orthopedics*
Summa Health System
Nationally ranked in 2 specialties, including diabetes &
endocrinology, and gastroenterology & GI surgery*
Case Western Reserve
School of Medicine ranked Top 23 in research;
Biomedical Engineering department ranked Top 15*
Northeast Ohio institutions
have been awarded over $500
million to develop centers of
innovation in cardiovascular
therapies, biomaterials,
neurostimulation, medical
imaging, and regenerative
medicine.
*U.S. News & World Report, 2014-15
Global Center for Health Innovation
The Global Center for Health Innovation showcases healthcare innovation, education,
and commerce through state-of-the-art showrooms on four themed floors. The Global
Center highlights the latest innovations of individual companies and also features
collaboratively-executed themed multi-organizational spaces. Tenants include
HIMSS, GE Healthcare, Philips Healthcare, Siemens, Cardinal Health, STERIS, and
other global healthcare firms.
HealthTech Corridor
Located in the heart of Cleveland, the HealthTech Corridor is a 1,600 acre, three mile
thoroughfare reserved for biomedical, healthcare and technology companies looking
to take advantage of close proximity to world-class healthcare institutions, including
Cleveland Clinic and University Hospitals, business incubators, academic centers,
including Case Western Reserve University, and more than 120 high-tech companies
engaged in the business of innovation.
Access to world-class research, clinical
facilities, and personnel has spurred
an impressive biomedical industry in
parallel to the institutions. Cleveland’s
biomedical industry has grown from
300 companies in 2002 to over 700
companies in 2015. Medical device
companies make up half of the total
and include firms such as Philips,
Hitachi, Steris, Siemens, and GE
Healthcare. Biopharmaceutical
companies Oakwood Labs, Ricerca,
WIL Research Laboratories, and
Affymetrix are located in the region.
A growing number of healthcare IT
and services companies, including
Hyland Software, Explorys, COMS,
CoverMyMeds, and Lexi-Comp
complete the industry composite.
Talent
The strength of executive management
leading Cleveland biomedical
companies is a key driver of the
region’s success. Entrepreneurial
talent thrives in a network of deep
assets and extensive resources within
a culture of collaboration. Serial
entrepreneurs leverage the region’s
innovation platform of private and
public funding, business assistance,
and institutional collaboration.
Clusters
Imaging
Cleveland is a global leader in medical imaging, the largest and fastest
growing cluster within the region’s biomedical industry. Multinational
imaging corporations - Siemens, Toshiba, Hitachi, Philips and GE, as well
as more than 50 start-up companies, pioneer new imaging technologies
in Northeast Ohio.
Orthopedics
Northeast Ohio is a hub of innovation and opportunity and a recognized
leader in the orthopedics sector. Anchored by world-class research and
clinical excellence, and augmented by local talent developed at early
orthopedics companies, a nucleus of orthopedics start-ups have flourished.
Successful exits include OrthoHelix Surgical Designs, acquired by Tornier
NV, and The Theken Family of Companies, acquired by Integra.
Neurostimulation
Northeast Ohio is rich in neurostimulation research and clinical assets.
Case Western Reserve University and Cleveland Clinic have spun out
several neurodevice companies, including NDI Medical and its multiple
spin outs, Neuros Medical, Neurotech’s “Most Promising Start Up,” and
Intelect Medical, acquired by Boston Scientific.
Regenerative Medicine
Cleveland’s reputation in regenerative medicine stems from the 1980s
when researchers conducted the first hematopoietic stem cell transplant
in Ohio. That research eventually grew into the internationally recognized
National Center for Regenerative Medicine and an emerging regenerative
medicine industry that includes Athersys, Juventas Therapeutics, and the
Cleveland Cord Blood Center.
Biomaterials
Anchored by world-class research and talent from University of Akron,
Kent State University and Case Western Reserve University, and enriched
by collaborations with polymer industry powerhouses Goodyear, Firestone
and Goodrich, Northeast Ohio has tremendous expertise in developing
biomaterials used to repair, restore or replace lost bodily function. Several
Northeast Ohio corporations, exploring the business of biomaterials, have
launched initiatives to take advantage of the growing industry. Parker
Hannifin, for instance, recently founded a Polymer Innovation Center, and
Lubrizol invested $30 million in an Advanced Materials facility expansion.
Cardiovascular
The excellence of Cleveland’s cardiovascular sector is understood worldwide. The sector is supported by one of the largest concentrations of
prestigious research hospitals and academic institutions in the United
States. The research and technologies discovered at these institutions
have enabled a nascent industry that includes companies such as
CardioInsight, Cleveland HeartLab and Arteriocyte.
Biosensors
Cleveland is home to an emerging biosensor industry, propelled by
multiple public-private partnerships supporting innovation and
commercialization. Intellirod Spine, Valtronic and Zin Technologies
are a few examples of Northeast Ohio companies utilizing sensor
technologies to detect, prevent and manage disease.
Health IT
Northeast Ohio has experienced rapid growth in the health information
technology sector. In the past five years, more than $790 million has been
invested in health IT and services companies in the Cleveland region. The
health IT industry continues to produce a significant number of jobs and
impact critical areas such as healthcare cost reduction and improvement
of patient care.
Cleveland’s biomed industry, a $5.6 billion sector,
grew 59% from 2000-2014.
Cleveland-area
Biomedical Investors
National Investors
in Cleveland Companies
Venture Capital & Growth
Equity Funds
Midwest
West Coast
New York Area
Allos Ventures
ABS Capital Partners
Accipiter Capital Management
Arboretum Ventures
Arsenal Venture Partners
Blue Point Capital
Bridge Investment Fund
Chrysalis Ventures
Downing Partners
Draper Triangle Ventures
Early Stage Partners
Edison Partners
Edgewater Capital
Everett Partners
Frantz Medical Ventures
Glengary Ventures
Hopen Life Science Ventures
Kadima Partners
Kirtland Capital Partners
Luxemburg Capital
Morgenthaler
Mutual Capital Partners
NDI Healthcare Fund
Primus Capital
RIK Enterprises
Riverside Company
RiverVest Ventures
Roulston Ventures
Aspire Capital
The Compass Group
Aisling Capital
Baird Capital Partners
DW Healthcare Partners
Amphion Innovations
Beecken Petty O’Keefe & Company
Francisco Partners
Behrman Capital
Blue Chip Venture Company
HLM Venture Partners
Clayton, Dubilier & Rice
Charter Life Sciences
Invesco
CortecGroup
CID Capital
Kearny Venture Partners
Cowen Group
Cressey & Company
Palo Alto Investors
Easton Capital Investment Group
Kentucky Seed Capital Fund
SV Life Sciences
Foundation Medical Partners
Medtronic
Takeda Ventures
Goldman Sachs
Ohio TechAngels
TPG Biotech
Great Point Partners
River Cities Capital Funds
Vivo Capital
Greatbatch
SWMF Life Science
Western Technology Investment
Investor Growth Capital
Angel Funds & Networks
Thoma Bravo
Thomas, McNerney & Partners
Triathlon Medical Venture Partners
Ampersand Capital Partners
New Science Ventures
Venture Investors
Bain Capital Ventures
North Peak Capital
West Capital Advisors
Boston Scientific
Oak Investment Partners
Capital Resource Partners
OrbiMed Advisors
CompuGroup Medical
Psilos Group
DSM Venturing
Radius Ventures
Excel Venture Management
Sunrise Equity Partners
Fidelity Biosciences
Tenex Capital
Fletcher Spaght Ventures
Toucan Capital
HealthCare Ventures
Welsh, Carson, Anderson & Stowe
*Cleveland-area biomedical investors
listed separately
South
Austin Ventures
EDG Partners
Akron ARCHAngel Network
Impact Angel Fund
North Coast Angel Fund
RMS Capital
Second Generation
Zapis Capital Group
ExOxEmis
Seed Funds
Pappas Ventures
Akron BioInvestments Funds
Case Technology Ventures
Cleveland Clinic Innovations
GLIDE Fund
JumpStart
Life Sciences Capital
Boston
Heritage Group
Jordan-Blanchard Capital
Maverick Capital
Mayport Venture Partners
MB Venture Partners
River Associates Investments
Santé Ventures
TriStar Technology Ventures
MPM Capital
Norwich Ventures
Polaris Partners
RA Capital
Siemens Venture Capital
Summit Partners
Tekla Capital Management
MSD Capital
36 85
medical capital
Clinical & Research Institutions
Critical Mass
Internationally recognized clinical and research institutions provide the platform for
Cleveland’s biomedical industry. Together these organizations conduct over $713 million
in annual sponsored research and are nationally ranked in all medical specialty areas. The
region’s industry collaborates closely with these institutions to advance innovation.
Cleveland Clinic
Nationally ranked in 13 specialties, including #1 heart
and heart surgery for 20 years in a row; #1 in urology;
#2 in diabetes & endocrinology, rheumatology, and
nephrology*
University Hospitals
Nationally ranked in 12 specialties for third year in
a row, including cancer, ear nose and throat,
gastroenterology and GI surgery, and orthopedics*
Summa Health System
Nationally ranked in 2 specialties, including diabetes &
endocrinology, and gastroenterology & GI surgery*
Case Western Reserve
School of Medicine ranked Top 23 in research;
Biomedical Engineering department ranked Top 15*
Northeast Ohio institutions
have been awarded over $500
million to develop centers of
innovation in cardiovascular
therapies, biomaterials,
neurostimulation, medical
imaging, and regenerative
medicine.
*U.S. News & World Report, 2014-15
Global Center for Health Innovation
The Global Center for Health Innovation showcases healthcare innovation, education,
and commerce through state-of-the-art showrooms on four themed floors. The Global
Center highlights the latest innovations of individual companies and also features
collaboratively-executed themed multi-organizational spaces. Tenants include
HIMSS, GE Healthcare, Philips Healthcare, Siemens, Cardinal Health, STERIS, and
other global healthcare firms.
HealthTech Corridor
Located in the heart of Cleveland, the HealthTech Corridor is a 1,600 acre, three mile
thoroughfare reserved for biomedical, healthcare and technology companies looking
to take advantage of close proximity to world-class healthcare institutions, including
Cleveland Clinic and University Hospitals, business incubators, academic centers,
including Case Western Reserve University, and more than 120 high-tech companies
engaged in the business of innovation.
Access to world-class research, clinical
facilities, and personnel has spurred
an impressive biomedical industry in
parallel to the institutions. Cleveland’s
biomedical industry has grown from
300 companies in 2002 to over 700
companies in 2015. Medical device
companies make up half of the total
and include firms such as Philips,
Hitachi, Steris, Siemens, and GE
Healthcare. Biopharmaceutical
companies Oakwood Labs, Ricerca,
WIL Research Laboratories, and
Affymetrix are located in the region.
A growing number of healthcare IT
and services companies, including
Hyland Software, Explorys, COMS,
CoverMyMeds, and Lexi-Comp
complete the industry composite.
Talent
The strength of executive management
leading Cleveland biomedical
companies is a key driver of the
region’s success. Entrepreneurial
talent thrives in a network of deep
assets and extensive resources within
a culture of collaboration. Serial
entrepreneurs leverage the region’s
innovation platform of private and
public funding, business assistance,
and institutional collaboration.
Clusters
Imaging
Cleveland is a global leader in medical imaging, the largest and fastest
growing cluster within the region’s biomedical industry. Multinational
imaging corporations - Siemens, Toshiba, Hitachi, Philips and GE, as well
as more than 50 start-up companies, pioneer new imaging technologies
in Northeast Ohio.
Orthopedics
Northeast Ohio is a hub of innovation and opportunity and a recognized
leader in the orthopedics sector. Anchored by world-class research and
clinical excellence, and augmented by local talent developed at early
orthopedics companies, a nucleus of orthopedics start-ups have flourished.
Successful exits include OrthoHelix Surgical Designs, acquired by Tornier
NV, and The Theken Family of Companies, acquired by Integra.
Neurostimulation
Northeast Ohio is rich in neurostimulation research and clinical assets.
Case Western Reserve University and Cleveland Clinic have spun out
several neurodevice companies, including NDI Medical and its multiple
spin outs, Neuros Medical, Neurotech’s “Most Promising Start Up,” and
Intelect Medical, acquired by Boston Scientific.
Regenerative Medicine
Cleveland’s reputation in regenerative medicine stems from the 1980s
when researchers conducted the first hematopoietic stem cell transplant
in Ohio. That research eventually grew into the internationally recognized
National Center for Regenerative Medicine and an emerging regenerative
medicine industry that includes Athersys, Juventas Therapeutics, and the
Cleveland Cord Blood Center.
Biomaterials
Anchored by world-class research and talent from University of Akron,
Kent State University and Case Western Reserve University, and enriched
by collaborations with polymer industry powerhouses Goodyear, Firestone
and Goodrich, Northeast Ohio has tremendous expertise in developing
biomaterials used to repair, restore or replace lost bodily function. Several
Northeast Ohio corporations, exploring the business of biomaterials, have
launched initiatives to take advantage of the growing industry. Parker
Hannifin, for instance, recently founded a Polymer Innovation Center, and
Lubrizol invested $30 million in an Advanced Materials facility expansion.
Cardiovascular
The excellence of Cleveland’s cardiovascular sector is understood worldwide. The sector is supported by one of the largest concentrations of
prestigious research hospitals and academic institutions in the United
States. The research and technologies discovered at these institutions
have enabled a nascent industry that includes companies such as
CardioInsight, Cleveland HeartLab and Arteriocyte.
Biosensors
Cleveland is home to an emerging biosensor industry, propelled by
multiple public-private partnerships supporting innovation and
commercialization. Intellirod Spine, Valtronic and Zin Technologies
are a few examples of Northeast Ohio companies utilizing sensor
technologies to detect, prevent and manage disease.
Health IT
Northeast Ohio has experienced rapid growth in the health information
technology sector. In the past five years, more than $790 million has been
invested in health IT and services companies in the Cleveland region. The
health IT industry continues to produce a significant number of jobs and
impact critical areas such as healthcare cost reduction and improvement
of patient care.
Cleveland’s biomed industry, a $5.6 billion sector,
grew 59% from 2000-2014.
Cleveland-area
Biomedical Investors
National Investors
in Cleveland Companies
Venture Capital & Growth
Equity Funds
Midwest
West Coast
New York Area
Allos Ventures
ABS Capital Partners
Accipiter Capital Management
Arboretum Ventures
Arsenal Venture Partners
Blue Point Capital
Bridge Investment Fund
Chrysalis Ventures
Downing Partners
Draper Triangle Ventures
Early Stage Partners
Edison Partners
Edgewater Capital
Everett Partners
Frantz Medical Ventures
Glengary Ventures
Hopen Life Science Ventures
Kadima Partners
Kirtland Capital Partners
Luxemburg Capital
Morgenthaler
Mutual Capital Partners
NDI Healthcare Fund
Primus Capital
RIK Enterprises
Riverside Company
RiverVest Ventures
Roulston Ventures
Aspire Capital
The Compass Group
Aisling Capital
Baird Capital Partners
DW Healthcare Partners
Amphion Innovations
Beecken Petty O’Keefe & Company
Francisco Partners
Behrman Capital
Blue Chip Venture Company
HLM Venture Partners
Clayton, Dubilier & Rice
Charter Life Sciences
Invesco
CortecGroup
CID Capital
Kearny Venture Partners
Cowen Group
Cressey & Company
Palo Alto Investors
Easton Capital Investment Group
Kentucky Seed Capital Fund
SV Life Sciences
Foundation Medical Partners
Medtronic
Takeda Ventures
Goldman Sachs
Ohio TechAngels
TPG Biotech
Great Point Partners
River Cities Capital Funds
Vivo Capital
Greatbatch
SWMF Life Science
Western Technology Investment
Investor Growth Capital
Angel Funds & Networks
Thoma Bravo
Thomas, McNerney & Partners
Triathlon Medical Venture Partners
Ampersand Capital Partners
New Science Ventures
Venture Investors
Bain Capital Ventures
North Peak Capital
West Capital Advisors
Boston Scientific
Oak Investment Partners
Capital Resource Partners
OrbiMed Advisors
CompuGroup Medical
Psilos Group
DSM Venturing
Radius Ventures
Excel Venture Management
Sunrise Equity Partners
Fidelity Biosciences
Tenex Capital
Fletcher Spaght Ventures
Toucan Capital
HealthCare Ventures
Welsh, Carson, Anderson & Stowe
*Cleveland-area biomedical investors
listed separately
South
Austin Ventures
EDG Partners
Akron ARCHAngel Network
Impact Angel Fund
North Coast Angel Fund
RMS Capital
Second Generation
Zapis Capital Group
ExOxEmis
Seed Funds
Pappas Ventures
Akron BioInvestments Funds
Case Technology Ventures
Cleveland Clinic Innovations
GLIDE Fund
JumpStart
Life Sciences Capital
Boston
Heritage Group
Jordan-Blanchard Capital
Maverick Capital
Mayport Venture Partners
MB Venture Partners
River Associates Investments
Santé Ventures
TriStar Technology Ventures
MPM Capital
Norwich Ventures
Polaris Partners
RA Capital
Siemens Venture Capital
Summit Partners
Tekla Capital Management
MSD Capital
36 85
medical capital
Clinical & Research Institutions
Critical Mass
Internationally recognized clinical and research institutions provide the platform for
Cleveland’s biomedical industry. Together these organizations conduct over $713 million
in annual sponsored research and are nationally ranked in all medical specialty areas. The
region’s industry collaborates closely with these institutions to advance innovation.
Cleveland Clinic
Nationally ranked in 13 specialties, including #1 heart
and heart surgery for 20 years in a row; #1 in urology;
#2 in diabetes & endocrinology, rheumatology, and
nephrology*
University Hospitals
Nationally ranked in 12 specialties for third year in
a row, including cancer, ear nose and throat,
gastroenterology and GI surgery, and orthopedics*
Summa Health System
Nationally ranked in 2 specialties, including diabetes &
endocrinology, and gastroenterology & GI surgery*
Case Western Reserve
School of Medicine ranked Top 23 in research;
Biomedical Engineering department ranked Top 15*
Northeast Ohio institutions
have been awarded over $500
million to develop centers of
innovation in cardiovascular
therapies, biomaterials,
neurostimulation, medical
imaging, and regenerative
medicine.
*U.S. News & World Report, 2014-15
Global Center for Health Innovation
The Global Center for Health Innovation showcases healthcare innovation, education,
and commerce through state-of-the-art showrooms on four themed floors. The Global
Center highlights the latest innovations of individual companies and also features
collaboratively-executed themed multi-organizational spaces. Tenants include
HIMSS, GE Healthcare, Philips Healthcare, Siemens, Cardinal Health, STERIS, and
other global healthcare firms.
HealthTech Corridor
Located in the heart of Cleveland, the HealthTech Corridor is a 1,600 acre, three mile
thoroughfare reserved for biomedical, healthcare and technology companies looking
to take advantage of close proximity to world-class healthcare institutions, including
Cleveland Clinic and University Hospitals, business incubators, academic centers,
including Case Western Reserve University, and more than 120 high-tech companies
engaged in the business of innovation.
Access to world-class research, clinical
facilities, and personnel has spurred
an impressive biomedical industry in
parallel to the institutions. Cleveland’s
biomedical industry has grown from
300 companies in 2002 to over 700
companies in 2015. Medical device
companies make up half of the total
and include firms such as Philips,
Hitachi, Steris, Siemens, and GE
Healthcare. Biopharmaceutical
companies Oakwood Labs, Ricerca,
WIL Research Laboratories, and
Affymetrix are located in the region.
A growing number of healthcare IT
and services companies, including
Hyland Software, Explorys, COMS,
CoverMyMeds, and Lexi-Comp
complete the industry composite.
Talent
The strength of executive management
leading Cleveland biomedical
companies is a key driver of the
region’s success. Entrepreneurial
talent thrives in a network of deep
assets and extensive resources within
a culture of collaboration. Serial
entrepreneurs leverage the region’s
innovation platform of private and
public funding, business assistance,
and institutional collaboration.
Clusters
Imaging
Cleveland is a global leader in medical imaging, the largest and fastest
growing cluster within the region’s biomedical industry. Multinational
imaging corporations - Siemens, Toshiba, Hitachi, Philips and GE, as well
as more than 50 start-up companies, pioneer new imaging technologies
in Northeast Ohio.
Orthopedics
Northeast Ohio is a hub of innovation and opportunity and a recognized
leader in the orthopedics sector. Anchored by world-class research and
clinical excellence, and augmented by local talent developed at early
orthopedics companies, a nucleus of orthopedics start-ups have flourished.
Successful exits include OrthoHelix Surgical Designs, acquired by Tornier
NV, and The Theken Family of Companies, acquired by Integra.
Neurostimulation
Northeast Ohio is rich in neurostimulation research and clinical assets.
Case Western Reserve University and Cleveland Clinic have spun out
several neurodevice companies, including NDI Medical and its multiple
spin outs, Neuros Medical, Neurotech’s “Most Promising Start Up,” and
Intelect Medical, acquired by Boston Scientific.
Regenerative Medicine
Cleveland’s reputation in regenerative medicine stems from the 1980s
when researchers conducted the first hematopoietic stem cell transplant
in Ohio. That research eventually grew into the internationally recognized
National Center for Regenerative Medicine and an emerging regenerative
medicine industry that includes Athersys, Juventas Therapeutics, and the
Cleveland Cord Blood Center.
Biomaterials
Anchored by world-class research and talent from University of Akron,
Kent State University and Case Western Reserve University, and enriched
by collaborations with polymer industry powerhouses Goodyear, Firestone
and Goodrich, Northeast Ohio has tremendous expertise in developing
biomaterials used to repair, restore or replace lost bodily function. Several
Northeast Ohio corporations, exploring the business of biomaterials, have
launched initiatives to take advantage of the growing industry. Parker
Hannifin, for instance, recently founded a Polymer Innovation Center, and
Lubrizol invested $30 million in an Advanced Materials facility expansion.
Cardiovascular
The excellence of Cleveland’s cardiovascular sector is understood worldwide. The sector is supported by one of the largest concentrations of
prestigious research hospitals and academic institutions in the United
States. The research and technologies discovered at these institutions
have enabled a nascent industry that includes companies such as
CardioInsight, Cleveland HeartLab and Arteriocyte.
Biosensors
Cleveland is home to an emerging biosensor industry, propelled by
multiple public-private partnerships supporting innovation and
commercialization. Intellirod Spine, Valtronic and Zin Technologies
are a few examples of Northeast Ohio companies utilizing sensor
technologies to detect, prevent and manage disease.
Health IT
Northeast Ohio has experienced rapid growth in the health information
technology sector. In the past five years, more than $790 million has been
invested in health IT and services companies in the Cleveland region. The
health IT industry continues to produce a significant number of jobs and
impact critical areas such as healthcare cost reduction and improvement
of patient care.
Cleveland’s biomed industry, a $5.6 billion sector,
grew 59% from 2000-2014.
Cleveland-area
Biomedical Investors
National Investors
in Cleveland Companies
Venture Capital & Growth
Equity Funds
Midwest
West Coast
New York Area
Allos Ventures
ABS Capital Partners
Accipiter Capital Management
Arboretum Ventures
Arsenal Venture Partners
Blue Point Capital
Bridge Investment Fund
Chrysalis Ventures
Downing Partners
Draper Triangle Ventures
Early Stage Partners
Edison Partners
Edgewater Capital
Everett Partners
Frantz Medical Ventures
Glengary Ventures
Hopen Life Science Ventures
Kadima Partners
Kirtland Capital Partners
Luxemburg Capital
Morgenthaler
Mutual Capital Partners
NDI Healthcare Fund
Primus Capital
RIK Enterprises
Riverside Company
RiverVest Ventures
Roulston Ventures
Aspire Capital
The Compass Group
Aisling Capital
Baird Capital Partners
DW Healthcare Partners
Amphion Innovations
Beecken Petty O’Keefe & Company
Francisco Partners
Behrman Capital
Blue Chip Venture Company
HLM Venture Partners
Clayton, Dubilier & Rice
Charter Life Sciences
Invesco
CortecGroup
CID Capital
Kearny Venture Partners
Cowen Group
Cressey & Company
Palo Alto Investors
Easton Capital Investment Group
Kentucky Seed Capital Fund
SV Life Sciences
Foundation Medical Partners
Medtronic
Takeda Ventures
Goldman Sachs
Ohio TechAngels
TPG Biotech
Great Point Partners
River Cities Capital Funds
Vivo Capital
Greatbatch
SWMF Life Science
Western Technology Investment
Investor Growth Capital
Angel Funds & Networks
Thoma Bravo
Thomas, McNerney & Partners
Triathlon Medical Venture Partners
Ampersand Capital Partners
New Science Ventures
Venture Investors
Bain Capital Ventures
North Peak Capital
West Capital Advisors
Boston Scientific
Oak Investment Partners
Capital Resource Partners
OrbiMed Advisors
CompuGroup Medical
Psilos Group
DSM Venturing
Radius Ventures
Excel Venture Management
Sunrise Equity Partners
Fidelity Biosciences
Tenex Capital
Fletcher Spaght Ventures
Toucan Capital
HealthCare Ventures
Welsh, Carson, Anderson & Stowe
*Cleveland-area biomedical investors
listed separately
South
Austin Ventures
EDG Partners
Akron ARCHAngel Network
Impact Angel Fund
North Coast Angel Fund
RMS Capital
Second Generation
Zapis Capital Group
ExOxEmis
Seed Funds
Pappas Ventures
Akron BioInvestments Funds
Case Technology Ventures
Cleveland Clinic Innovations
GLIDE Fund
JumpStart
Life Sciences Capital
Boston
Heritage Group
Jordan-Blanchard Capital
Maverick Capital
Mayport Venture Partners
MB Venture Partners
River Associates Investments
Santé Ventures
TriStar Technology Ventures
MPM Capital
Norwich Ventures
Polaris Partners
RA Capital
Siemens Venture Capital
Summit Partners
Tekla Capital Management
MSD Capital
47
Innovation
EXITS SINCE 2002
Start-Up Activity
An ever-growing pipeline of funded start-up companies demonstrates
the vibrant biomedical environment in the region. Regional biomedical
companies attract funding from venture capital, private equity,
and strategic sources as well as state and federal programs. The
rich pipeline has drawn the notice of larger strategic firms as shown
by the increasing number of company exits in recent years.
40
43
35
33
31
25
28
22
21
13
16
135
125
68
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2014
2013
2012
2011
2010
2009
2007
2006
2008
companies funded
Source: Midwest Healthcare Growth Capital Report
18
2013
2012
2011
2010
2009
2008
16
20
22
21
25
24
2007
2006
2005
18
20
23
19
2004
2003
15
76
74
72
91
73
72
82
84
21
47
55
68
50
20
25
27
23
19
19
22
23
2000
2001
34
13
15
Clayton Dubilier & Rice/Goldman Sachs
Predictive Biosciences
Hyland Software
Mercer
HealthPro Rehabilitation
Carefx
Edgepark Surgical
Noteworthy Medical
Homecare Collection Services
Theken Spine
NDI Medical (product line)
Whole Health Management
Invacare
Integra LifeSciences
Medtronic
Walgreen
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
companies funded
cleveland
Biomedical
Innovation Destination
OncoDiagnostic Labs
Computer Systems Company
Innovative Process Administration
Therapy Partners
IntellisEPM (product line)
2009 CompuGroup
2005 Nuvasive
RSB Spine (product line)
2004 Merry X-Ray
SourceOne Healthcare Technologies
2003 Enpath Medical
BIOMEC Cardiovascular
Merge Healthcare
RIS Logic
Cardiac Sciences
Complient
2002 GE Medical Systems
St. Jude Medical
Omnicare
2003
2002
2013
2012
2011
2010
2009
2008
2007
2006
2005
2010
Trek Diagnostics
Cleveland BioLabs
3
2004
Amresco
Lexi-Comp
Trek Diagnostic Systems
Intelect Medical
Data Management
Ganeden Biotech (product line)
Cell Targeting
2006 Magellan Biosciences
Initial Public Offering
companies funded
6
7
14
VWR International
Wolters Kluwer
Thermo Fisher Scientific
Boston Scientific
MedData
Schiff Nutrition
BioTime
MemberHealth
Wellcorp
Athersys
USB
BIOMEC
Hygenic Corporation
Over $200 Million and 800 Deals from Regional Tech Transfer
2003
2011
2007 Universal American
Nationwide
Initial Public Offering
Affymetrix
Greatbatch
Cortec Group
Source: National Institutes of Health
2002
Performance Health & Wellness Holdings
OrthoHelix
U.S. Endoscopy
Research Organics
10
2012
2011
14
16
11
2010
2009
2008
2007
13
16
18
2006
13
2005
13
10
2004
2003
Gridiron Capital
Tornier NV
Steris
Sigma-Aldrich
2008
Millions of Dollars
2001
2012
2013
Over $100 Million in SBIR Grants to Regional Start-Ups
2000
Ricerca
ChanTest
Directed Medical Systems
MedData
Simbionix
Bedford Laboratories
50
398
227
203
242
165
171
87
61
2005
32
2004
2003
Millions of Dollars
Source: Association for University Technology Managers
Target
2014 Main Market Partners
Charles River Labs
COMS Interactive
MEDNAX
3D Systems
Hikma Pharmaceuticals
2013 TPG
Envision Pharmaceutical Holdings
Tenex Capital Management Roscoe Medical
Cardinal Health
AssuraMed
Over $2 Billion Invested in 350 Start-up Companies
Millions of Dollars
Acquirer
USA Instruments
Cardiac Assist Devices
NCS Healthcare
700 biomedical companies • 36 Cleveland-area biomedical
investors • $2 billion invested in 350 start-up companies •
47 Exits • 85 national investors in Cleveland companies •
$5.6 billion biomedical sector
This Report is supported by the Fund For Our Economic Future,
the Cleveland Foundation and the Burton D. Morgan Foundation.
bioenterprise.com
216.658.3999
@BioECorp
Linkedin.com/company/bioenterprise
themedicalcapital.com
@MedicalCaptial
47
Innovation
EXITS SINCE 2002
Start-Up Activity
An ever-growing pipeline of funded start-up companies demonstrates
the vibrant biomedical environment in the region. Regional biomedical
companies attract funding from venture capital, private equity,
and strategic sources as well as state and federal programs. The
rich pipeline has drawn the notice of larger strategic firms as shown
by the increasing number of company exits in recent years.
40
43
35
33
31
25
28
22
21
13
16
135
125
68
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2014
2013
2012
2011
2010
2009
2007
2006
2008
companies funded
Source: Midwest Healthcare Growth Capital Report
18
2013
2012
2011
2010
2009
2008
16
20
22
21
25
24
2007
2006
2005
18
20
23
19
2004
2003
15
76
74
72
91
73
72
82
84
21
47
55
68
50
20
25
27
23
19
19
22
23
2000
2001
34
13
15
Clayton Dubilier & Rice/Goldman Sachs
Predictive Biosciences
Hyland Software
Mercer
HealthPro Rehabilitation
Carefx
Edgepark Surgical
Noteworthy Medical
Homecare Collection Services
Theken Spine
NDI Medical (product line)
Whole Health Management
Invacare
Integra LifeSciences
Medtronic
Walgreen
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
companies funded
cleveland
Biomedical
Innovation Destination
OncoDiagnostic Labs
Computer Systems Company
Innovative Process Administration
Therapy Partners
IntellisEPM (product line)
2009 CompuGroup
2005 Nuvasive
RSB Spine (product line)
2004 Merry X-Ray
SourceOne Healthcare Technologies
2003 Enpath Medical
BIOMEC Cardiovascular
Merge Healthcare
RIS Logic
Cardiac Sciences
Complient
2002 GE Medical Systems
St. Jude Medical
Omnicare
2003
2002
2013
2012
2011
2010
2009
2008
2007
2006
2005
2010
Trek Diagnostics
Cleveland BioLabs
3
2004
Amresco
Lexi-Comp
Trek Diagnostic Systems
Intelect Medical
Data Management
Ganeden Biotech (product line)
Cell Targeting
2006 Magellan Biosciences
Initial Public Offering
companies funded
6
7
14
VWR International
Wolters Kluwer
Thermo Fisher Scientific
Boston Scientific
MedData
Schiff Nutrition
BioTime
MemberHealth
Wellcorp
Athersys
USB
BIOMEC
Hygenic Corporation
Over $200 Million and 800 Deals from Regional Tech Transfer
2003
2011
2007 Universal American
Nationwide
Initial Public Offering
Affymetrix
Greatbatch
Cortec Group
Source: National Institutes of Health
2002
Performance Health & Wellness Holdings
OrthoHelix
U.S. Endoscopy
Research Organics
10
2012
2011
14
16
11
2010
2009
2008
2007
13
16
18
2006
13
2005
13
10
2004
2003
Gridiron Capital
Tornier NV
Steris
Sigma-Aldrich
2008
Millions of Dollars
2001
2012
2013
Over $100 Million in SBIR Grants to Regional Start-Ups
2000
Ricerca
ChanTest
Directed Medical Systems
MedData
Simbionix
Bedford Laboratories
50
398
227
203
242
165
171
87
61
2005
32
2004
2003
Millions of Dollars
Source: Association for University Technology Managers
Target
2014 Main Market Partners
Charles River Labs
COMS Interactive
MEDNAX
3D Systems
Hikma Pharmaceuticals
2013 TPG
Envision Pharmaceutical Holdings
Tenex Capital Management Roscoe Medical
Cardinal Health
AssuraMed
Over $2 Billion Invested in 350 Start-up Companies
Millions of Dollars
Acquirer
USA Instruments
Cardiac Assist Devices
NCS Healthcare
700 biomedical companies • 36 Cleveland-area biomedical
investors • $2 billion invested in 350 start-up companies •
47 Exits • 85 national investors in Cleveland companies •
$5.6 billion biomedical sector
This Report is supported by the Fund For Our Economic Future,
the Cleveland Foundation and the Burton D. Morgan Foundation.
bioenterprise.com
216.658.3999
@BioECorp
Linkedin.com/company/bioenterprise
themedicalcapital.com
@MedicalCaptial