Third quarter venture capital funding in Minnesota rebounded after what the Star Tribune termed a "dismal" first half of the year. The majority of the funds went to to up-and-coming medical device firms.
An account in the newspaper reports companies pulled in $84.8 million in nine deals. Despite that, 2013 is behind previous years and third quarter results were flat compared to the same time last year. Since 2009, Minnesota has averaged $243.6 million in venture capital investments each year on 37 deals per year.
Last month, the Business Journal carried an interview with former venture capitalist Danny Sachs, who co-founded four startups that raise $118 million in venture capital.
Sachs said that the state's angel-investment tax credit is good for individual investors, but Minnesota needs more than that get med-tech companies off the ground. He cited states like Michigan that have established "funds of funds" to put money into venture capital firms that invest in local startups.
“Med-tech takes a lot of money," Sachs said. "We want deep-pocket, patient money that can get a company $80 million over the years.”