How Nebraska Medtech Startups Thrived in a VC Downturn

Swaraj

Published on September 1, 2025

The medtech sector of Nebraska is outpacing those of its coastal competitors. Startups in the Cornhusker state showed a resiliency beyond predictions as healthtech ecosystems around the nation changed in response to the collapse of venture capital market funding in 2022.

Unlike bigger markets where inflated valuations and an investor retreat hampered innovation, Nebraska’s smaller, more prudent ecosystem has successfully managed the obstacles. The state’s university spinoff pipeline, strong support networks, and a founder culture placing customer needs first have let it escape the worst effects of the recession.

Said Michael Dixon, president of the University of Nebraska technology transfer office (UNeMed): “When I started two decades ago, 90% of our transactions involved established companies.” This has changed such that UNeMed now works quite closely with smaller businesses as the VC market collapsed.

What bigger and new firms focused on the U.S. manufacturing corporations are telling us is, “Hey, develop a startup, then we will purchase it; perhaps pay Although it’s premium, we want to reduce risk, Dixon explained.” Although larger medtech hubs like Philadelphia still attract more venture capital investment overall, many are seeing a clear decrease in both exits and capital. Nebraska’s targeted and steady approach, one that investors obviously recognized.

With regard to utility patents, the University of Nebraska system remains among the world’s best and was ranked 49th in the United States and 82nd worldwide in 2024, quite behind the University of Pennsylvania, ranked 14th nationally and 22nd worldwide. This rating, however, points to a growing research potential in the Midwest.

Set up in 2017, the University of Nebraska Medical Center (UNMC) Global Center for Health Security has become a national resource for biopreparedness and control of infectious diseases. It has a biocontainment training facility and the only federal quarantine unit in the nation. Nebraska has been ideally situated thanks to this improved reputation and access to qualified labor and manufacturers, attracting both startups and talent. Entrepreneurs are using Omaha-based plastics businesses to develop domestic device prototypes, especially in view of VC market collapse, approaching tariffs, and testing requirements.