Health IT, Startups

McKesson, Blue Cross top digital health’s most trusted corporate VCs

Part II in our research examining which corporate venture capitalists you can trust and rely on.

Corporate venture capital has begun to rival “traditional” venture capital and angel investing in its importance as an investment source for healthcare industry innovation. However, unlike VCs and angels, there is a dearth of information on how the various players in the corporate venture sector operate.  

As part of our ongoing efforts to level the playing field for healthcare entrepreneurs, MedCity News has partnered with Lake Whillans to conduct independent research on corporate venture capital.

Previously, we took a look at life science corporate venture capital. Today, we deliver our findings on corporate venture capital in the digital health space.  

Who are the most trustworthy digital health corporate investors, according to the MedCity News audience?  (Rating scale from 1 to 4 (highest).)

  1. McKesson Ventures  (2.91)
  2. BlueCross BlueShield Venture Partners (2.84)
  3. Cambia (2.78)
  4. GE Ventures (2.71)
  5. Google Ventures (2.64)

We then separated out respondents who had direct interaction with these organizations and asked, “Which organizations provided the best experience for entrepreneurs?” The scores, according to the MedCity News-Lake Whillans survey:

  1. Comcast  Ventures  (3.91)
  2. McKesson Ventures (3.87)
  3. Cambia (3.63)
  4. GE Ventures (3.2)
  5. BlueCross BlueShield Venture Partners (2.8)

Full rankings are over at the Lake Whillans website.

Something fascinating happened when we dug into the “trust” responses in our survey. It seems the more someone worked with these organizations, the less they trusted them.

For all respondents on the issue of trust, the mean rating (on our four-point scale) for corporate venture funds is 1.97.

However, for those who have firsthand experience, the average score is 1.82. On the other hand, for those who know these corporates by reputation alone, the average score is 2.06.

It would appear that deeper familiarity does not correlate with positive perception.

Digital health has seen huge recent increase in funding and investment and, inevitably, entrepreneurs are compiling experience on which organizations are most trustworthy (or not), which add the most value as partners, and who they would like to work with again in the future. We reached out to our audience by way of our Lake Whillans/MedCity Digital Health Investment Survey, and more than 160 professionals at the intersection of digital health and venture capital shared their insights and experiences.

This survey focused on corporate investors focused on digital health companies, which encompass mobile, social media, genetics big data, and more.

We provide you this research because, unlike more established investment sectors, there’s much less insight on corporate VCs and their practices.

Knowledge is power for entrepreneurs seeking to raise capital in today’s complex and rapidly evolving environment.  It’s crucial for innovators to be able to identify the best investment partners so their companies can be protected and thrive.

Photo: Flickr user Terry Johnston