Create Health Ventures has officially launched with a promising $21 million fund aimed at transforming the digital health landscape. This new venture capital firm is setting its sights on early-stage digital health companies that cater specifically to payers and pharmaceutical firms. The investment focus is on startups that offer B2B platforms designed to enhance patient engagement and streamline the patient care journey, with particular attention to clinical trial recruitment and retention.
Emma Cartmell, cofounder and managing partner of Create Health Ventures, emphasized the importance of supporting founders from within the healthcare sector. "We’ve heard firsthand from payers, providers, and pharmaceutical companies that their business goals are to elevate the patient experience, facilitate better health outcomes, and improve access to care for all, especially those with health disparities," she stated. Cartmell highlighted that leveraging technology to meet these challenges is a potent investment strategy that can significantly impact the healthcare industry.
Understanding Venture Capital in Digital Health
To comprehend the significance of this launch, it's essential to understand what venture capital (VC) is. VC is a form of private equity financing provided to startups and small businesses with strong growth potential. In the context of digital health, VCs like Create Health Ventures fund innovations that improve health services through technology.
Why Focus on Payers and Pharma?
Payers, such as insurance companies, and pharmaceutical firms play a crucial role in healthcare delivery. By investing in technologies that engage these entities, Create Health Ventures aims to improve efficiency and outcomes in patient care. For example, a startup could develop a digital platform that helps insurance companies streamline claims or a tool that assists pharmaceutical companies in managing clinical trials more effectively.
The Larger Trend in Digital Health Investment
Create Health Ventures is part of a broader movement, with other firms like Amboy Street Ventures and 62 Ventures also making significant strides. Amboy Street Ventures, for instance, closed a $20 million fund focusing on women's health and sexual wellness.
Glen Tullman, a well-known health tech investor, also launched 62 Ventures with a $100 million fund, diversifying beyond his existing 7wireVentures' digital health focus by including education and environmental sustainability.
This trend signifies a growing recognition of the importance of digital health solutions across various sectors, highlighting the potential for VC-backed startups to revolutionize healthcare delivery.
In summary, the launch of Create Health Ventures marks a significant step in the ongoing evolution of digital health investment, promising to drive innovation and improve patient care through strategic partnerships with payer and pharma companies.
