As technology increases in the healthcare arena more and more venture firms are turning their attention to digital health.
Healthcare focused venture firm 7wireVentures has recently closed on a $100 million fund and formed a coalition with eight major healthcare organizations including several large health systems and insurers. The 7wire Connected Consumer Health Fund has invested in 12 digital health companies in the past, including chronic disease management platform Livongo.
“Nearly 20 percent of the American economy is spent on healthcare, yet many of its core functions remain largely untouched by consumer-focused technology,” Glen Tullman, co-founder and Managing Partner of 7wireVentures and CEO of Livongo Health, said in a statement. “The $100 million Connected Consumer Health Fund, supported by top health plans and health systems which collectively serve more than 25 million consumers, will fuel entrepreneurs with ideas that improve the health of our society.”
The Chicago-based venture firm has a history of investing in digital health startups including CareDox, MediSafe and Ayogo. The firm said that it is focused on mobile, connected platforms and the cloud. It is also looking toward consumer focused products that let patients access and manage their health. In a statement 7wiresVentures predicted that personalized-on-demand consumer health markets are sized at $1 trillion.
The new coalition will include Allina Health, Arkansas BlueCross, Blue Shield, Bon Secours Health System, Cigna, Horizon Blue Cross Blue Shield of New Jersey, Memorial Hermann Health System, Rush University Medical Center, and Spectrum Health.
“We are in an era of unprecedented innovation in the health and healthcare sectors,” Lee Shapiro, managing partner of 7wireVentures, said in a statement. “The 7wireVentures Connected Consumer Health Fund and Coalition are perfectly timed to drive innovation and adoption across the market.”