Providence Ventures, the Venture capital arm of Providence St. Joseph Health (PSJH) has announced a second $150 million healthcare venture capital and growth equity fund. Founded in 2014, Providence Ventures manages $300 million in venture capital funds on behalf of Providence St. Joseph Health (PSJH), the nation’s third-largest health system.
Providence Ventures Second Health Fund Focus Areas
Providence Venture’s investment strategy is focused on identifying the best opportunities that align with the interests of their portfolio companies and the innovation priorities of Providence St. Joseph Health (PSJH), through broad solution deployment and strategic insight. The second fund will focus on investing in early and growth-stage healthcare companies that specialize in healthcare information technology, technology-enabled services, medical devices, and healthcare services.
In addition, the fund will invest $5 to $15 million per Portfolio Company with the flexibility to lead investment rounds or participate as a syndicate partner. To date, Providence Ventures has invested in fifteen portfolio companies and co-invested with over twenty-five leading healthcare venture capital firms.
“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.”
Growth Plans for 2019
Recently the team leadership has expanded to include David Kereiakes, Partner, and Rich Proscia, Senior Associate. Kereiakes is an experienced healthcare investor who most recently joined Providence Ventures from River Cities Capital Funds. Proscia joined the team from CVS, and prior to that Athenahealth, where he worked on venture investment initiatives. The team will be expanding further with additional hires planned in early 2019.
Providence Ventures portfolio companies include Avia, Binary Fountain, Collective Medical Technologies, Kyruus, Lyra Health, Omada Health, Trilliant Health, and more.