Hot Investor Mandate: Venture Arm of USA Health System Invests in Medical Devices & Digital Health Companies with Strong Strategic Alignment

18 Jul

A new venture capital firm established in early 2019 by a large network of hospitals, clinics, and home care services in the USA does direct, strategic investment in early-stage companies (with approximately half of this allocation dedicated to follow-on investments). The firm’s initial investments are usually in the range of $1-3M. The firm is geography agnostic and will consider all technologies across the globe.

The firm’s investments focuses on these 4 verticals: digital health, medical devices, healthcare technology systems, and healthcare services. The firm will not invest in biopharmaceuticals or in vitro diagnostics, though they may consider life science tools. In terms of medical devices, the firm prefers to invest in products who have achieved FDA approval, though the firm may consider and is open to speaking with earlier stage companies with strong fit. The firm expects technologies to have a strong alignment with the hospital network, and these technologies need to be useable and easily integrated with the health system. Practically, the firm expects to have a contract (or direct line of sight to a contract) at the time of investment. Some areas of particular interest include mental and behavioral health, postpartum care, interoperability among devices and health records, cognitive support for millennials, use of voice to diagnose and monitor health conditions, etc. Overall, the firm will take high interest in technologies that help deliver care outside of the hospital.

While the firm has no specific team requirements, the firm does like to see entrepreneurs and management teams with a strong tie to the product or market. To date, the firm has only done follow-on investments as part of a syndicate, but will be open to acting as lead investor in future opportunities, most likely starting from 2020 and beyond.

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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