Medical start-up fundraising soars 28% in 2014 so far — 5 quick facts

The healthcare industry is ripe with opportunity — from medical devices that produce better outcomes and lower costs to IT infrastructure that can help providers communicate better — and many companies are raising big bucks to fund their projects. Here are five quick facts about the medical start-up company fundraising, based on a LifeScience Alley analysis reported in TCB:

•    18 companies raised $113.6 million in the third quarter
•    79 Minnesota medical companies raised $300 million
•    Fundraising pace is 28 percent higher than in 2013 so far
•    Third quarter fundraising was down 6.2 percent compared to the same period last year
•    Five companies raised $10 million or more

Orthopedic and spine device companies are leading when it comes to money-raising, especially in the third quarter. Spine device company Zyga Technologies, which focuses on a less invasive solution for sacroiliac joint fusion, completed a $10 million financing round while Rotation Medical, focused on rotator cuff treatment, reported $27.2 million in series B financing. Both companies are based in Minnesota.

The companies are raising money from various sources, including both venture capital and Angel investors. Reports earlier this year show companies are also seeking new routes to raise money, including online crowdfunding platforms, especially as venture capital opportunities dry up.

Eric VonGuten, DC, listed his company on crowdfunding site Kickstarter in an attempt to raise $250,000 for an initial stress study and initial implant lab testing for a new minimally invasive procedure to mechanically stabilize the spine from within for maximum range of motion.

More articles on spine devices:
Aurora Spine, Sentio sign distribution agreement for nerve mapping system
What's going on at Medtronic Spine? Innovations coming down the pipe
Medtronic's new ACDF device designed to streamline procedures