Reports Show VC and Angel Investors Investing Less Money but in More Companies -- Central Ohio Healthcare Investments Nearly Double

Two reports recently published indicate that, while venture capital and angel investing is down from 2008, investors are backing a greater number of deals.  

BioEnterprise, the Cleveland-based bioscience organization that tracks healthcare startup activity in the 11-state Midwest region, has released its 3Q report indicating that healthcare investments across the region were $593 million -  down 34 percent from the previous year.  In sharp contrast however, Central Ohio healthcare investments nearly doubled going from $6.4 million last year to $11.7 million in 2009.     

Ohio as a whole outperformed other states in the region.  Healthcare investments in the state were down 23 percent, which was the lowest drop in investments in the Midwest states.   Most of Ohio’s healthcare investments were in companies based in Cincinnati.

In general the report found that although investments were down, the number of deals funded was up.  For 3Q 2008, $896.7 million was invested in 113 deals while in 2009 $593 million was invested in 140 deals.  This follows a related trend in the angel investment community.  

The Center for Venture Research at the University of New Hampshire has reported that angel investments totaled $9.1 billion for the first half of 2009 and while this is down 27 percent from 2008, angels are backing more companies.    In the first half of this year, angels invested in 24,500 deals – up 6 percent from last year.    

“While angels have not significantly decreased their investment activity, they are committing less dollars resulting form lower valuations and a cautious approach to investing,” says Jeffrey Sohl, center director.  

For more information:  

Download the BioEnterprise report on Midwest Healthcare Investments.

See the story on Angel Investing in Business First,