![]() ![]() Health systems have gotten rattled by long-term investments when their hospitals hit a budgetary bump or underwent a corporate reorganization. Health system officials assert many of these investments are dually beneficial to their nonprofit missions, providing extra income and better care through new medical devices, software and other innovations, including ones their hospitals use.īut the gamble at times has been harder to pull off than expected. (Joye Qualls Photography)Įager to find new sources of revenue, hospital systems of all sizes have been experimenting as venture capitalists for health care startups, a role that until recent years only a dozen or so giant hospital systems engaged in. Even though initial results were promising, the health system shut down the operation. He hopes forging a network that brings more focus to under-represented founders will help even the playing field when it comes to accessing and raising capital.Austin, Texas, entrepreneur Jeanne Teshler worked with a North Carolina health system to develop a digital tool to help people manage their Type 2 diabetes. "We think we can catalyze more capital going to these founders beyond what we can do from an investment perspective," Whitney said. The plan is to back 20 start-ups this year, but Whitney's already identified more than 150 prospects. The Jumpstart Nova Fund now has $55 million investments from backers including Eli Lilly, HCA Healthcare and Bank of America. "Without Marcus … taking the bet on Cellevolve and me personally, I mean, we never might have gotten a company off the ground," said Porter. One of Whitney's first investments was Cellevolve, which included taking a seat on the company's board. Their capital raises were also smaller the median was $100 million, compared with $170 million industrywide. The actual numbers remain small - 627 women- and minority-led firms, 84 of which were Black-owned. In 2021, venture capital and private equity saw a 25% jump in woman- and minority-owned firms in the industry, according Fairview Capital Partners. He wasn't the only one to capitalize on the greater willingness to invest in under-represented founders last year. He had no trouble finding companies and launched the Jumpstart Nova fund to invest exclusively in Black-led health firms. But are there actually enough deals out there?" he said. "The number one question was, hey, this sounds great. He seized on that willingness as an opportunity to raise capital to invest in Black-led firms. "I tapped into an awareness that there was a willingness to do something that I've never really felt at any point in my life," said Whitney. He says he felt a cultural shift from investors he'd talked to for years, following the George Floyd protests in 2020 and the focus that summer on racial equity. ![]() Marcus Whitney is an African American venture partner and the co-founder of Jumpstart Health in Nashville. Nearly eight out of 10 VC investment partners in 2020 were white, 15% Asian and just 3% Black, according to the VC Human Capital Survey conducted by Deloitte, in conjunction with the National Venture Capital Association and Venture Forward. The venture capital industry is among the least diverse in finance. He noted, "being different or in the situation where the investor may not see themselves in you, or may not find a way to connect, that makes it harder to find capital." "They're really making a bet on you as the entrepreneur, and therefore it's a profoundly personal decision," said Porter, who holds a medical degree from University of Pennsylvania Medical School and an MBA from The Wharton School. When things reopened, Porter found that getting venture capitalists to invest was about more than buying into an idea. Getting start-up off the ground meant making his own connection with financial backers, but his timing was bad. He began talking to investors about Cellevolve in March 2020, on the eve of the pandemic shutdown. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |