Hot Investor Mandate: East Coast-Based VC Invests Broadly in Technology-Enhanced Companies, Mostly in the Digital Health Space

21 Nov

A venture capital firm based in the East Coast has assets under management of about $135M and is investing from its third fund of outside capital, which closed in 2012. The firm invests in technology-enhanced services, and about 80% of the firm’s investments are in digital health technologies. Investments are in the form of equity or (less frequently) convertible debt, and the firm typically invests $500,000-$1.5 M. The firm invests in about 3-4 companies per year, and investments are typically made in Series A rounds. The firm primarily invests in the Northeast and Mid-Atlantic, but will consider investments outside those regions.

The firm invests broadly in the healthcare IT and analytics space, with past investments including a diagnostic platform, consumer wellness apps and health-focused media. They look for companies which provide software and data services to providers, payers, biopharmaceutical firms, and patients. The firm will consider investments related to any indication, but does not consider medical devices or therapeutic drugs. The firm invest only in companies that have fully developed a product.

The firm prefers to invest in companies that have existing revenues, but may consider pre-revenue companies with other strong evidence of their product’s market momentum such as adoption by free users. They like to see recurring revenue, high gross margins, and well-understood customer economics. The firm invests only in privately held companies, but has no other set requirements for management.

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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