Eight Roads Ventures, the investment arm of financial services conglomerate Fidelity International, has established a healthcare fund aimed at China-based startups, China Money Network reported today.
The $250m vehicle will primarily invest in four healthcare-related areas: therapeutics, services, medical technology and IT and digital health. Approximately 40% of the money will go towards therapeutics.
The fund is expected to be followed by a broader technology vehicle, though details about the latter are yet to emerge.
Eight Roads will also provide follow-on funding to existing portfolio businesses in the healthcare sector, in line with its patient capital approach that is often required in the healthcare sector.
Eight Roads’ portfolio includes more than 100 healthcare businesses, of which more than 30 are based in the People’s Republic.
Daniel Auerbach, senior managing partner Asia of Eight Roads, said: “Eight Roads has backed innovative China healthcare companies since 1995.
“The launch of this specialised fund reflects our confidence in the evolution of the China market and forms part of a strategy to more precisely target our healthcare and technology expertise.”