Healthcare’s Next Source of Alpha Is Moving Upstream
The question is no longer whether healthcare innovation is accelerating. The question is where investors gain access to generate the strongest returns.
The question is no longer whether healthcare innovation is accelerating. The question is where investors gain access to generate the strongest returns.
Randy Bolyga, founder CEO of RXNT, built his medical software company without venture capital, relying instead on SBA loans and a conservative, cash-positive growth strategy. He believes many venture capital-backed healthcare startups fail because they chase rapid growth without sustainable business models or a deep understanding of the market.
We are taking a look at how health insurers are using AI, defining success, and managing cybersecurity risks. Give us your opinions by completing our brief, anonymous survey.
Health system VC arms appear to have a lot more to offer to startups than traditional VC funds. Startup founders say that the tech pilots they launch with their health system partners end up being more effective because they are more incentive-aligned. For health systems, investing in a startup allows them to have a hand in shaping the tools they will eventually deploy across their enterprises to solve issues like burnout, payment delays and excessive hospital readmissions.
In 2023, digital health fundraising took on a bit of a different shape, according to a new Rock Health report. Startups tried out some creative ways to keep their businesses afloat — including series extension rounds, unlabeled fundraises and silent deals from existing investors.
7wireVentures launched its largest fund to date on Tuesday — the closing of the $217 million digital health fund brings the Chicago-based firm’s assets under management to more than $500 million. Two-thirds of the new fund's capital will be allocated to 7wireVentures’ existing portfolio companies for follow-up investments, and the remaining third will go toward Series B and Series C funding round for companies in which the firm hasn’t yet invested.
Michael Yang spent nearly a decade at Comcast Ventures helping to build a West Coast investment presence for the Philadelphia-based company. Now he's charged with a similar mission for a $71 billion Canadian pension plan.
Venture capital firm Health Velocity Capital, which is led by a trio of veteran investors, has closed its initial oversubscribed fund with $185 million in committed capital.