Jumpstart Foundry has announced it is now approaching a new format, different from its previous accelerator model. The organization will now be investing in seed stage healthcare companies as an investor fund — 20 to start with.
“The accelerator game has gotten boring,” Jumpstart CEO and founder Vic Gatto said in a statement, according to The Tennessean. “There are a lot of accelerators that mean well but are bringing mediocre innovation to market because they’re playing an outdated game. We want to be a better version of venture capital, and this new innovation fund will supply the tools to really help startups succeed.”
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The narrowing of focus is continuing for Jumpstart. Just in 2014 it decided to turn away from other sectors and invest exclusively on healthcare startups. For now, Jumpstart is looking to back companies building diagnostic, digital health and tech service products. It should be noted that portfolio companies will need to pay a $50,000 program fee. This will fund services related to market traction, capital raises and recruitment.
The company has also developed a new service that will introduce entrepreneurs to venture capital funds and angel investors.
Jumpstart’s website claims that its previous process has had a 71% success rate, and its alumni have gone on to raise more than $38 million. The companies it has worked with thus far include health IT company NextGxDx, cloud-based system InvisionHealth, telemedicine-focused Octovis and device company evermind, among others.
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