Hot Investor Mandate 1: Large Healthcare System Makes Strategic Investments in Personalized Health Technologies

14 Sep

A large not-for-profit healthcare system serves over 2 million people each year has created a strategic investment arm, which launched in 2016 with an inaugural $150M allocation dedicated to investing in innovative companies that fit the healthcare system’s key strategic priorities: safety & quality, analytics, clinical innovations, and technology. The strategic arm focuses on Series A to B funding in innovative companies and will also invest in funds that share the same strategic vision. The firm’s investment sizes typically range from $1-2 million and the firm invests globally. In addition, the firm supports the growth of early-stage companies through an accelerator program.

The firm is focused on personalized health technologies and will consider innovations in medical devices, diagnostics, and healthcare IT/digital health. However, the firm will not invest in therapeutics or Class III (PMA) devices/products. Examples of current investments include a diagnostic company that enables health systems to deliver patient-specific diagnostic and treatment options based on the individual’s DNA, a company developing an automated online platform for patients to better manage their healthcare bills and payments, etc. All technologies must have passed conceptual stage of development and have a valid proof-of-concept.

The firm seek to work with companies that have mitigated technical risk and have achieved initial market validation for their products and technology. The firm will also evaluate companies on the basis of strategic and market fit from a health systems perspective. The firm is a strategic investor and invests in companies in which it intends to use the company’s products or services. The firm has led investment rounds, but generally co-invest with other syndicates. The firm does not always require a board seat in its portfolio companies. The firm’s accelerator program will consider earlier stage companies, including less technical, market and management team development.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

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