This equity firm just clenched $200M to debut healthcare-focused fund
- Growth equity firm 1315 Capital announced on Wednesday the closing of its $200 million inaugural fund.
- Led by Adele Oliva and Michael Koby, the firm is looking to healthcare's innovative niche markets.
- 1315 Capital provides venture expansion and growth capital to commercial-stage specialty pharmaceutical, medical technology, and healthcare services companies.
In April, Rock Health Digital reported health funding for Q1 2016 hit $981.3 million - the highest first quarter total since the venture fund group started tracking deals in 2011. This marks a slight contrast to forecasts from analysts and investors that digital health firms may have to tighten their belts regarding investments this year.
Rock Health noted data digital health funding increased almost 50% year-over-year growth, in comparison to 2015. Last year, digital health firms raked in $4.5 billion in venture money, a slight increase over 2014’s $4.3 billion total, according to a report by Rock Health.
1315 Capital joins the digital health funding frenzy by seraching out innovations in niche healthcare markets. "Consolidation within healthcare has provided opportunities for innovation, particularly in niche markets, and we are committed to working with exceptional management teams to fill needs in the healthcare market and build value for our investors," said Oliva.
As with most digital health efforts, current large investments look to broad yet pointed use of health IT to drive insights into an individual's health. As Casper de Clerq, a general partner at Norwest Venture Partners, was quoted in MobiHelathNews, "We really depend on clinical outcomes because the company’s always fundable if it has good outcomes."
Rock Health noted the five largest deals of Q1 involved a platform for cancer care providers (Flatiron Health), wearable tech (Jawbone), and kiosks for screening vitals (Higi).
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