Providence Ventures Closes On Second $150M Health Care Fund
SEATTLE and RENTON, Wash., /PRNewswire/ -- Providence Ventures, the Venture capital arm of Providence St. Joseph Health (PSJH), the nation's third largest health system, announced today a second $150 million health care venture capital and growth equity fund.
Providence Ventures II will target early and growth-stage health care companies that specialize in health care information technology, technology-enabled services, medical devices, and health care services. The fund will also invest $5 to $15 million per Portfolio Company with flexibility to lead investment rounds or participate as a syndicate partner.
"In health care, it's easy to say you want to be innovative. But, innovation will fall to the backburner if you don't find the best opportunities and fund them," said Rod Hochman, president and CEO, M.D., Providence St. Joseph Health. "Through Providence Ventures, we have made a commitment to innovation by investing in and partnering with new companies that can help us find solutions to everyday challenges in health care. We're excited to build upon our existing partnerships, as well as establish new ones that can help us advance our vision of health for a better world."
"Providence Ventures' investment model is to find and invest in companies that create needle-moving opportunities that address top priorities for PSJH," said Aaron Martin, Providence Ventures' Managing General Partner, who also serves as Providence St. Joseph Executive Vice President and Chief Digital Innovation Officer. "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."
Track record of success
"Since making their initial investment in 2015, the Providence Ventures team has consistently delivered on their mission to enhance our company's value," said Graham Gardner, CEO of Kyruus, the leading patient access solution in the healthcare industry. "Providence Ventures and the PSJH clinical and operations teams partnered with us early on to help optimize our solution and deploy it across the system. After we were able to demonstrate a meaningful ROI to PSJH, Providence Ventures made valuable introductions to other health systems in their network looking for a better patient-provider matching solution - leading to several large contracts that helped drive our early growth."
Mike McSherry, the CEO and co-founder of Xealth, which was incubated at PSJH, said: "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."
The Providence Ventures team keeps growing and plans to hire in 2019
The Providence Venture team includes:
The team will be expanding further with additional hires planned in early 2019. Interested companies, investors, and entrepreneurs can visit ProvidenceVentures.org for more information.
About Providence Ventures
About Providence St. Joseph Health
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SOURCE Providence St. Joseph Health