CVS Health eyes early stage companies with $100M digital health fund

The fund plans to target disruptors in the digital health space that focus on making healthcare more accessible, affordable and simple.
By Mallory Hackett
11:59 am
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Photo by filadendron/Getty Images

CVS Health is looking to offer financial backing and strategic support to early-stage health technology companies with this week’s launch of its $100 million venture fund.

The fund, called CVS Health Ventures, plans to target disruptors in the digital health space that focus on making healthcare more accessible, affordable and simple, the company said in its announcement.

The company also stressed the importance that the potential companies align with CVS Health’s core strategy so it can share insights and expertise along the way.

"Consumers deserve a better health experience, one that puts them at the center of cutting-edge, digitally enabled solutions," Karen Lynch, president and CEO of CVS Health, said in a statement. "Forming CVS Health Ventures will build on our successful track record of scaling innovation and driving change in health care."

WHAT’S THE IMPACT?

With the creation of its venture fund, CVS Health builds upon the more than 20 direct investments it has made through CVS and Aetna businesses. These investments include the social determinants of health care-coordination platform UniteUs and the point-of-care diagnostic platform LumiraDx.

"We have deep experience investing in innovative companies," Josh Flum, the executive vice president of enterprise strategy and business development at CVS Health, said in a statement.

"We will build on this experience by providing capital to our start-up and venture partners and helping them scale more rapidly through commercial relationships with our business units. This is an exciting opportunity to accelerate innovation and effectively bring new solutions to the consumer health space."

THE LARGER TREND

Over recent years, the digital health space has begun receiving more investments that are worth more.

Last year had 372 funding rounds for 351 companies worth $13.8 billion, according to MobiHealthNews’ estimates. Those figures stand head and shoulders above previous years, which logged 251 announcements for $7.2 billion (2019) and 244 rounds for $7.7 billion (2018).

So far this year, investors have continued pouring massive amounts of money into digital health. In Q1, MobiHealthNews reported on a whopping 99 digital health fundings equaling $7.1 billion in venture dollars.

Besides CVS Health, Cigna and Optum both have venture funds that focus on digital health investments.

 

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