Providence St. Joseph Health venture capital arm Providence Ventures said yesterday that it closed on a second $150 million healthcare venture capital and growth equity fund.
The newly closed fund will focus on early and growth-stage healthcare companies in the healthcare information technology, tech-enabled services, medical devices and healthcare services fields, the Seattle-based firm said.
“Providence Ventures’ investment model is to find and invest in companies that create needle-moving opportunities that address top priorities for PSJH. We partner closely with teams at PSJH and our portfolio companies to iterate, test, and scale their solutions at PSJH and other partner health systems. As evidence of the success of this model, all fifteen of our portfolio companies have commercial agreements with us, including several which have expanded enterprise-wide since our initial investment,” Providence Ventures managing general partner and Providence St. Joseph chief digital innovation officer Aaron Martin said in a press release.
The Providence Ventures II fund will aim to invest $5 to $15 million per portfolio company, with options to lead investment rounds or operate as a syndicate partner. So far, the previous Providence Ventures fund has invested in 15 portfolio companies and co-invested with 25 healthcare-focused VC firms since 2014.
“Without the partnership and deep engagement by the Providence Ventures’ team and PSJH’s executive and clinical leaders, the creation and early commercial expansion of Xealth would not have been possible. Providence Ventures’ unique model of facilitating strong relationships between its portfolio companies and PSJH’s key stakeholders to solve big problems enabled Xealth to develop its technology platform from the ground-up quickly with a detailed understanding of our health system customers’ needs and requirements,” Xealth co-founder & CEO Mike McSherry said in a prepared release.
