Bay Area's HealthQuest Capital Bags $110 Million For Debut Fund With Healthcare, Medtech Focus
8/19/2014 6:10:43 AM
Bay Area's HealthQuest Capital Debuts With $110 Million With Healthcare, Medtech Focus
August 19, 2014
By Krystle Vermes, BioSpace.com Breaking News Staff
Today, California-based investment company HealthQuest Capital announced the end of its debut fund at the hard cap of $110 million. This is an excess of its original target fund of $50 million.
"HealthQuest is focused on funding innovation that can be quantified in terms of both improvements in patient outcomes as well as healthcare economics,” said HealthQuest Founding Managing Partner, Garheng Kong. “We believe these opportunities can deliver valuable medical advances that translate into excellent financial returns.”
Kong founded HealthQuest Capital in 2013. He has been an investor in the industry since 2000. Some of the companies Kong has invested in include Cellective Therapeutics, Novamin Technologies, Cempra Pharmaceuticals, Serenex and Alimera Sciences. Most recently, he has invested in Histogenics, Salveo Specialty Pharmacy, SARcode Bioscience Inc. and First Aid Shot Therapy. Now, Kong is shifting his focus to his own company.
"We are excited to launch our debut fund, and appreciate the support of our investors for the HealthQuest strategy and team,” Kong continued.
Following this round of funding, HealthQuest is expected to focus on areas of the healthcare community where there is unmet clinical need for innovation.
The HealthQuest investor team includes Randy Scott, Founder and CEO of Novamin Technologies; David Kabakoff, Co-founder, CEO and Chairman of Salmedix and Chairman of Trius; and Venture Partner Tom Callaway, President and Founder of Life Science Partner.
HealthQuest views itself as a “venture growth” fund, seeking commercial stage investments. The company will not take “binary risks” such as clinical studies or regulatory submissions where its investments represent an “all or nothing” bet. Instead, HealthQuest will focus on growing revenues and scaling the company over time through its investments.
Currently, HealthQuest has partners in California, Florida and Georgia. The company is considering investments from all parts of North America. Its target sectors include medical devices, diagnostics, consumer/OTC health, patient care products, mHealth and Health IT that directly impacts patient treatment or care.
Additionally, HealthQuest gives preference to companies that need less than $20 million to achieve profitability. Its initial investment is typically between $2 to 4 million.
HealthQuest is a part of the Sofinnova Ventures network, which has been making investments for more than 40 years. Its investment capabilities have been extended through its partnership with Sofinnova Ventures to three continents around the world.
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