Israel’s Accelmed, a group of funds focused on investments in health tech companies, announced on Monday that it has established a new venture fund with the goal of raising $100 million.
The fund, which will be managed by Dr. Irit Yaniv and Amir Blatt, both partners at Accelmed, has already received a $15 million commitment from anchor investor Consensus Business Group, led by British businessman Vincent Tchenguiz.
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Dubbed Accelmed Ventures II, the fund is the fourth established by Accelmed which currently manages over $300 million through Accelmed Ventures and private equity fund, Accelmed Partners. It’s the second fund to focus on early-stage startups.
“Accelmed Ventures II’s investment strategy in medical devices will focus on companies in advanced clinical trials, nearing FDA approval, and after first-in-human trials. In digital health, the fund will focus on companies in initial commercialization stages in the US, be it with hospitals or insurers,” said Blatt.
He added that the average investment in a company is expected to be approximately $8-10 million, including any follow-up investments.
“In recent years there is increased global demand for breakthrough technological healthcare solutions, due to increasing expenditure, estimated at trillions of dollars in the US alone, pronounced population aging and an increased prevalence of cancer and chronic diseases such as obesity, diabetes, and heart disease,” said Dr. Yaniv, managing partner at Accelmed Ventures II. “In the decade since its inception, Accelmed transformed into a dominant player in its ability to identify, develop and commercialize groundbreaking technologies and solutions in the medical device space, due to the knowledge, expertise and varied experience of its managing team in addition to its network of leading players in the industry. The deals which we have recently reported attest to this, and to the significant need in expanding our activity to a new VC fund, which will address the current lack of finance in medical devices in particular and in digital health, as well as the increased interest of medical device giants in acquiring novel solutions in advanced development stages, nearing regulatory approval and commercialization.”