SoftTech VC has raised $100 million for its fifth fund, a seed fund that will allocate 15 percent to 20 percent of its capital to invest in health IT startups, according to a company statement. Health IT has been an area of interest for the venture capital firm, since the launch of SoftTech VC Fund IV in 2013.
In a phone interview, Jeff Clavier, the founder and managing partner for Soft Tech, noted that health and wellness has been an area of interest for the firm since it became the first institutional investor in Fitbit in 2008.
Clavier described SoftTech VC Fund V as a cross-sector fund that will make investments from $500,000 to $1.5 million. He noted that it plans to invest in four to eight health IT companies, depending on the opportunities. He added that it will begin making investments from fund V before the end of the year.
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Asked to identify a recent health tech investment, Clavier named Molekule. The new company develops an air purifier that uses “blue light” to degrade airborne particles to support people with respiratory conditions such as asthma or COPD.
In addition to the seed fund, Clavier said the firm may also tap its $50 million growth stage fund to make health IT investments.
SoftTech VC has made six health IT investments from fund iv, including Molekule, as well as Halo Neuroscience, Nima, BetterDoctor, DNAnexus, and Lantern.
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