- Nashville-based Heritage Group closed its second innovation fund, with $220 million and six new partners, Modern Healthcare reported.
- Participating as limited partners are nine healthcare organizations that invested in a 2011 innovation fund and six new organizations.
- The pooled approach allows the Heritage Group to invest more in later-state digital companies than would be possible if they were investing on their own.
The fund anticipates making 15 to 20 investments. Committees comprised of executives from each of the partners will review company portfolios and decide which ones to support. One or more of the partners will typically be planning to use the technology.
The approach benefits both sides by introducing healthcare organizations to potential solutions to business problems and exposing digital health firms to potential customers.
So far, the fund has invested in three firms: Aver, which makes technology to support bundled payments; Lucro, a disruptive marketplace for buying and selling novel healthcare solutions; and a mobile phlebotomist network. A fourth investment is expected soon.
The first fund, with 10 limited partners, injected nearly $170 million in 15 portfolio companies.