Minnesota startups raised $45 million in venture capital during the second quarter, more than double the meager $20 million local companies took home in the first three months of the year, according to a report released Friday. Despite the mid-year rebound, Minnesota companies still raised far less venture capital in the second quarter than during the same period a year ago.
The state’s startups took home roughly $90 million in the year-ago period, according to the MoneyTree Report, which is compiled by the National Venture Capital Association and PricewaterhouseCoopers, using data from Thomson Reuters.
Nine Minnesota companies raised venture capital in the second quarter. Companies developing medical devices raised the most, with four med-tech firms pulling in $33.5 million. Anulex Technologies Inc., a startup developing devices for treating soft tissue in the spine, announced it raised about $18 million in June. Denali Medical Inc., a Plymouth-based firm that’s kept its technology under wraps, raised $4 million, the Business Journal reported earlier this year.
Ethanol-maker Advanced BioEnergy, raised about $10 million, the Business Journal previously reported. It was the only energy firm in the state to raise capital in the second quarter.
Nationwide, venture capital investment rose to $6.5 billion in the second quarter, up 34 percent compared to $4.9 billion during the first three months of the year. In the year-ago period, companies raised $4.27 billion.
Nationwide, investment in life sciences companies — including biotech and medical device firms — surged 52 percent to $2.1 billion compared to the first three months of the year.