How The Midwest Was Won: Creating A New Epicenter For Device Innovation And Investment

The American Midwest brings to mind images of vast, fertile fields of wheat, corn, and other important crops, but its significance is now much more than agricultural. The often unassuming US heartland – comprising Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin – is also a fast-growing hotbed for medical device research and development, entrepreneurship, and investment. With industry-leading manufacturers such as Medtronic PLC, St. Jude Medical Inc., Hologic Inc., GE Healthcare/General Electric Co., Cook Group Inc., Boston Scientific Corp., 3M Co., DePuy Orthopaedics Inc./Johnson & Johnson, Biomet Inc., and Zimmer Biomet Holdings Inc. headquartered in the Midwest, the region has long been known for developing and manufacturing a wide variety of advanced implantable devices and imaging technologies. In fact, DePuy, Biomet, and Zimmer alone comprise one-third of the world's orthopedics industry, according to Indiana life sciences accelerator BioCrossroads. And, with its established outsourcing and supply chains, world-class research universities, including Case Western Reserve University and the University of Wisconsin, Madison, a large talent pool, and lower cost of doing business, the Midwest is turning out to be fertile soil indeed for device entrepreneurs launching a new venture.

A critical component for start-up success, however, is financing, and although the Midwest has traditionally been underserved and overlooked by venture capitalists (VCs), the funding picture is improving. In fact,...