AHA seeks to seed promising healthcare startups

As healthcare undergoes its biggest transformation of the modern age, it is clear that the monolithic system in place needs innovation, and venture capital (VC) funding is coming from unexpected sources to spur growth. innovation where it is needed most in 2022.

The American Hospital Association (AHA) announced Tuesday (March 22) that it is jumping into the VC game to help medical ideas become reality with strong support.

In a statement on its website, the AHA said it “provides early stage funding to executive-run investment funds focused on improving access, quality and affordability of care. health”.

See also: Global healthtech sector continues to attract investor interest in 2022

Funding New Healthcare Entrepreneurs

A look at some of the chosen venture capital firms shows a commitment to bringing pandemic-era digital transformation to populations that are underserved by healthcare and lack access to capital.

In its announcement, the AHA highlighted SteelSky Ventures, a women-led, business-focused venture capital firm working to improve women’s health outcomes. It invests in medical devices, consumer health, digital health, healthcare delivery, online pharmacy and retail therapeutics.

In January, the AHA launched the initiative, announcing that HCA Healthcare, Atrium Health, Henry Ford Health System and LHC Group are among fund investors and strategic healthcare partners creating the Jumpstart Nova Fund.

The AHA said Jumpstart Nova will invest exclusively in Black-founded and -led businesses in the healthcare ecosystem that focus on improving access and affordability in underserved communities.

“Hospitals and health systems need strong partners to work with to build healthier, more equitable communities,” AHA President and CEO Rick Pollack said at the time. “Jumpstart Nova aims to provide talented but too often overlooked entrepreneurs with the capital they need to move this important work forward.”

Bringing equity to the sector

In its own announcement of the creation of the new fund, Jumpstart Nova noted that of the 785,000 companies in the US healthcare sector, only 35,000 companies are black-owned.

“That’s less than 5%,” Jumpstart Nova said in the announcement. “Amid the COVID-19 pandemic, two issues have captured America’s attention: health care and racial equity. Jumpstart Nova has created a unique opportunity for investors to address both issues simultaneously.

As more companies disintermediate a healthcare system that is neither affordable nor accessible to millions of people, the incoming venture capital money is at the highest level in years.

PYMNTS reported in November that “Investment in global health tech startups has skyrocketed this year to $51.3 billion, a staggering 280% increase from 2016 levels, according to recent data. from London & Partners and Dealroom.co One of the countries driving this growth is the UK, which has the second highest number of HealthTech companies to have received funding since 2016 (1,090), behind the United States. United (6,551).

Read more: UK leads EU in driving global growth in health tech

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