Medical Alley Association released their first half investment report Monday, drawing attention to key developments taking place in the health technology industry. Medical Alley companies had a strong start to 2018, buoyed by new investments in biotech, with 45 companies raising $234 million in the first half of the year. Similarly, Medical Alley’s biopharma community had its best first half ever with $51.8 million raised by 10 companies, more than double the prior record from 2015.
However, the loss of the Angel Investment Tax Credit (AITC) is threatening job growth in Medical Alley. The fewest companies since the passage of the AITC raised money in the first six months of 2018, following the credits expiration.
“Clearly the loss of the Angel Investment Tax Credit has been detrimental to job growth in Medical Alley” said Shaye Mandle, President and CEO of the Medical Alley Association. “Lawmakers need to act to reinstate the credit, so that life-saving innovations and critical job creation can continue in Medical Alley, the global epicenter of health innovation and care,” Mandle said.
34 companies raised $4 million or less, the AITC cap, a 20% drop from the prior year, and a new low since the credit was first instituted.
About the Medical Alley Association
Founded in 1984, the Medical Alley Association supports and advances the global leadership of Medical Alley’s healthcare industry, and its connectivity around the world. MAA delivers the collective influence, intelligence and interactions that support Medical Alley.