Health system VC arms appear to have a lot more to offer to startups than traditional VC funds. Startup founders say that the tech pilots they launch with their health system partners end up being more effective because they are more incentive-aligned. For health systems, investing in a startup allows them to have a hand in shaping the tools they will eventually deploy across their enterprises to solve issues like burnout, payment delays and excessive hospital readmissions.
Two concepts that venture capital and growth equity investors often grapple with are "valuation", the agreed-to dollar value of the target company, and "dilution," the nexus between an investor's.
In 2023, digital health fundraising took on a bit of a different shape, according to a new Rock Health report. Startups tried out some creative ways to keep their businesses afloat including series extension rounds, unlabeled fundraises and silent deals from existing investors.
7wireVentures launched its largest fund to date on Tuesday the closing of the $217 million digital health fund brings the Chicago-based firm’s assets under management to more than $500 million. Two-thirds of the new fund's capital will be allocated to 7wireVentures’ existing portfolio companies for follow-up investments, and the remaining third will go toward Series B and Series C funding round for companies in which the firm hasn’t yet invested.
Two concepts that venture capital and/or growth equity investors often grapple with are “valuation”, the agreed-to dollar value of the target company, and “dilution,” the nexus between.