Cedars-Sinai and MemorialCare Health Launch Health Tech VC Fund

2014-05-13_14-42-54

Cedars-Sinai Health System announces that it has formed a partnership with MemorialCare Health System to create a shared health technology VC fund called Summation Health Ventures. The new VC business will be located in Long Beach, Calif. alongside the MemorialCare headquarters, and just a short drive from Cedars-Sinai’s West Hollywood headquarters.

The new business will fund early to mid-stage health IT startups with “a proven and experienced management team, revenue growth potential, and products and services that can improve performance and achieve success in the marketplace.” The VC is taking an interesting approach to adding value to potential startups. The company will do more than offer funding and strategic oversight, it will also offer access to the hundreds of clinicians, researchers, and patients within its combined network. In doing so, Summation Health Ventures will become a new breed of VC, that offers the services in line with traditional VC funds, but also offers a pilot program more aligned with the work that Pilot Health Tech NYC is doing.

"Summation Health Ventures provides emerging companies a powerful potential for value creation, thanks to the diversity and strengths of our two organizations. This is enhanced considerably by the experience and expertise of MemorialCare and Cedars-Sinai physicians and staff who are acknowledged leaders in spearheading and advancing health care innovation. Our ultimate goals are to improve quality, enhance patient safety and create greater value in health care delivery." – Barry Arbuckle, Ph.D., MemorialCare Health System president and CEO.

MemorialCare is not new to the investment space. Its wholly-owned VC arm the MemorialCare Innovation Fund has been an active investor in health tech startups for more than 20 years. Through this investment arm, MemorialCare has backed health IT startups that went on to drive overall standings and performance improvements across the network. Cedars-Sinai is not as familiar with the investment space, but bring their own extensive experience in co-developing new products with innovative startups.

There is no word yet on when Summation will begin hearing pitches from health IT entrepreneurs, or what size investments Summation will issue. Cedar-Sinai are going into the venture as equal stake partners. No other financial terms were disclosed.


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