OSF Ventures, the corporate venture capital subsidiary of US-based healthcare provider OSF HealthCare, has launched a $100m third fund, increasing its total assets under management to $250m.
Founded in 2016, OSF Ventures provides capital for early-stage developers of therapeutics and technology such as medical devices, healthcare software and diagnostics products. Its portfolio currently boasts 17 companies and it has made 27 direct investments to date as well as three commitments to other venture capital funds, achieving nine exits.
The unit’s previous fund was launched in 2019 with $75m, the same size as its inaugural fund in 2016. Investments into other funds include VC firm LRVHealth’s fourth fund in 2019, three years after OSF was one of 13 healthcare providers to invest in Ascension Ventures’ $255m fourth fund.
In September 21, OSF Ventures committed $5m to a $25m round for TailorMed, creator of an online platform designed to make it easier for patients to cover their healthcare costs.
OSF Ventures’ portfolio includes telepsychiatry platform developer Array Behavioral Care, remote patient monitoring technology producer CareSignal, lung and respiratory care provider Vida and molecular diagnostics technology developer Inflammatix, backing its $102m series D round in March 2021.
Stan Lynall, vice-president of venture investments at OSF HealthCare, said: “Our actual hands-on use in piloting the technology, or collaborating in other ways, is what we value in the process. This allows us to provide meaningful feedback that results in our portfolio companies developing successful solutions that are really valuable to our patient base.
“Scaling investments through partnerships and practical collaborations with budding tech companies from across the globe helps us bring emerging healthcare solutions to OSF HealthCare clinics and hospitals, most often before they are broadly marketed and deployed.”
