Minnesota digital health companies are raking in the big bucks

Minnesota-based medtech companies raised $112 million in venture capital during the first quarter of this year, according to a report from Medical Alley Association. More than half of the companies that raised VC were consumer-focused healthcare and digital health, a change for the region that is known for its implantable cardio devices and neuromodulation.

Investors backed 26 companies in the Minnesota region, raising $112 million of the $839 million that was raised nationally during the first quarter. More than half of those 26 companies are developing technology that puts consumers at the center of health.

Digital health was the top sector in the region that raised the most VC. With $69 million raised for 8 companies, digital health is driving investments in the Minnesota industry.

One of the largest investments in Minnesota from the first quarter was $60 million invested in Bind (Minneapolis), which is developing on-demand health insurance offering. Its technology uses a model of core coverage for preventative health and emergency room visits, as well as add-ons for care than can be predicted like carpal tunnel and surgery. Consumers are able to pay for what they need and not worry about paying for things they don’t need.

Learn to Live (Eden Prairie, Minn.) is another Minnesota-based digital health startup company that raised $4.3 million in the first quarter to further develop its platform for mental health. The company’s technology is bringing remote access to high-quality mental health services that allows patients to access proper care without the stigma that surrounds traditional mental health services.

The medical device sector raised $14 million among 12 companies during the first quarter. The biotechnology sector raised $29 million between 6 companies as well, with Biothera taking $13.5 million in fundraising.